RCI's currency conversion program

[owl61]

I was trying to figure out the significance of the paragraphs on my Setsail Pass that deal with this subject. Customers with foreign currency MasterCards and Visa Cards are given the choice to allow RCI's agent, Global Card Services Inc (GCSI) , to convert the amount of the onboard statment to the currency of the foreign card at Bloomberg wholesale exchange rates...for a 3% fee. It would not surprise me if GCSI were an RCI sub or if RCI got a huge chunk of that 3%.

I know of no card issuer charging more than 3 % as a foreign currency conversion fee. I believe when using my PNC Fidelity affinity Visa to make ATM withdrawls I am charged 1%. I know HBSC want to charge 3% for the same foreign currency ATM transactions using its plastic. Things may be in a state of flux as a result of the massive CCF (currency conversion fee) class action that was settled last year against Visa, MC, and several large banks.

As I believe MC and Visa also convert foreign currency at wholesale rates, I fail to comprehend how this RCI currency conversion program could possibly benefit a foreign currency cardholder. It might , however, be more costly to use it. Can someone set me straight?

[robtulipe]

Most credit card convert currency at their interbank rate and then charge you a service fee which is a percentage based on the amount involved. This fee is usually indicated on the back of your monthly statement. My VISA charges me 1.8% but pays me 2% in travel credits on foreign currency charges so I am ahead 0.2% by letting my credit card do the conversions. Using RC's conversion plan would cost me 2.2% more as I only get 1% travel credits on home currency charges and they charge 3% so it cost me 2% more and I don't get that 0.2% difference.

I can't see any benefits for allowing RC to convert your onboard and IMO this is a high profit for them.

I've had a problem with Royal Caribbean in the past ignoring my check off on the automatic credit card form requesting to be billed in US$. This is why this Canadian usually sets our Seapass account as a cash one (no credit card info given) which with RC you can charge up to $500 before you have to make a payment. I imagine if you and your partner kept separate onboard account you could charge $500 each before needing to make a payment. We had a large onboard credit for our last two RC cruises and took no ship's tours so our account never even got close to this amount. Then you can make a cash payment or have RC swipe your card in $US to partially or fully pay off your onboard account anytime to avoid being billed in $CAD. If you still want any charges billed to your credit card (to get points, bonuses etc.) and are required to make a payment part way through the cruise just have them manually bill your outstanding balance at that time to your card. Then your account balance is zero so you will that $500 credit limit again.

Another way to do it is to give your credit card on embarkation. Then on the last full day onboard go to the pulser's/customer service desk, get your onboard account statement print out and make them bill your credit manually in US$ at that time. Since your onboard account balance will then be nil or only have any last evening expenses, make any major onboard purchases before doing this, there will be nothing or only a small amount to be automatically billed to your credit card.