Beware! Int'l transaction fee for A$ hotel bookings!

[cardiology]

My recent NAB Qanats AMEX card statement showed 2 International transaction fees charged for my 2 hotel bookings using Tripadvisosr suggested hotel (via Getaroom) and Agoda.com both booked and paid clearly in A$. The customer service agent explained that the fees were charged because the transactions were processed overseas! How would I know that this was the case for each one as I paid online and it clearly stated in A$.

After 15 mins of discussion, they finally reversed the fees.

Any similar experience?

Just beware of this next time especially if you book and paid hotels online.

 

[TheRealTMA]

My recent NAB Qanats AMEX card statement showed 2 International transaction fees charged for my 2 hotel bookings using Tripadvisosr suggested hotel (via Getaroom) and Agoda.com both booked and paid clearly in A$. The customer service agent explained that the fees were charged because the transactions were processed overseas! How would I know that this was the case for each one as I paid online and it clearly stated in A$.

After 15 mins of discussion, they finally reversed the fees.

Any similar experience?

Just beware of this next time especially if you book and paid hotels online.

Yes this is an unfortunate result of reserve bank changes. It's not possible to tell if you will be hit with a DCC fee even if you use an Australian web site and pay in Australian dollars. If the processing is done offshore then the bank will hit you with a secret conversion fee. Westpac tried to charge me in excess of $900 some three years ago with this scam for EK flights booked through EK Australian web site and quoted/charged in A$. Been happening with Amex bank cards for some years. If you search AFF you'll find several threads and discussions on the topic. Amex Amex cards do not do this.

 

[oz_mark]

Yes this is an unfortunate result of reserve bank changes. It's not possible to tell if you will be hit with a DCC fee even if you use an Australian web site and pay in Australian dollars. If the processing is done offshore then the bank will hit you with a secret conversion fee. Westpac tried to charge me in excess of $900 some three years ago with this scam for EK flights booked through EK Australian web site and quoted/charged in A$. Been happening with Amex bank cards for some years. If you search AFF you'll find several threads and discussions on the topic. Amex Amex cards do not do this.

Nothing to do with Reserve Bank changes.

 

[Pleb Status]

In the past, I have had the NAB charge me FX fees for Agoda purchases (and a few other things). I have not had any issues with any of my other non NAB cards.

I have given up using any NAB card where there is even a remote possibility of an FX charge. I now use my Platinum Charge or BW World in those circumstances.

 

[TheRealTMA]

Nothing to do with Reserve Bank changes.

Actually it was from when they allowed banks to charge interchange fees and DCC. Never usd to happen. And, it's actually an Australian bank issue who are 'regulated' ( who are we kidding) in the end by the reserve bank.

And, irrespective of who 'was' to blame, it is a blatant act of theft on the part of Australian banks with their CCs

 

[oz_mark]

Actually it was from when they allowed banks to charge interchange fees and DCC. Never usd to happen. And, it's actually an Australian bank issue who are 'regulated' ( who are we kidding) in the end by the reserve bank.

And, irrespective of who 'was' to blame, it is a blatant act of theft on the part of Australian banks with their CCs

No one suddenly allowed banks to charge interchange fees, so I don't know what you are on about with that. Interchange fees have been around a long time.

While the addition of the fee was a reaction to DCC, it is not specifically an Australian issue - it happens in other countries as well. The banks are charged increased assessment fees (such as 'Cross Border Assessment Fees') for any international transaction. This is levied by the scheme.The banks add a bit on.

 

[TheRealTMA]

It's theft by banks, pure and simple. Good to see the EU and UK have banned such fees from the new year.

 

[Austman]

I just booked an Australian hotel on Agoda using my Australian Citibank Signature Infinite card.

Citibank states:

We charge you an International Transaction Fee of 3.4%, debited to your Account on the Transaction Date, of which a service and assessment fee of up to 1.1% is payable by us to Visa or Mastercard (as applicable), for any Retail Purchase or Cash Advance transaction in:

...

Australian dollars (or any other currency), when either the merchant or its financial institution/payment processor is located or registered overseas,

...

Note: It may also not always be clear that the merchant or its financial institution/ payment processor is located or registered outside Australia.​

All the rates were shown in AUD and the final fee payable was in AUD. It all looked like booking an ordinary hotel on an Australian website (except for no ".au").

After booking and checking my credit card transactions on-line, the "pending" transaction states : "Agoda Hoofddorp NL" with the exact AUD amount. So, The Netherlands? ...

Citi also state:

Please note the following related to pending authorisations:

• The transaction description/amount may change for pending authorisations depending on the final settlement by the merchant, foreign exchange rate changes, applicable charges etc​

And when requesting an e-receipt from Agoda it actually shows the amount in USD converted to AUD! And that the company is Agoda Pte at a Singapore address!

How can anyone know where the payment processor is?

Are there recent experiences booking an Australian hotel on Agoda? Will an International Transaction Fee apply? I realise that some CCs don't charge this fee anyway but it seems Citibank does.

 

[Dr Ralph]

How can anyone know where the payment processor is?

I don't believe you can be certain. The only way I have found is to ask before making the transaction.

 

[TheRealTMA]

​

How can anyone know where the payment processor is?

Are there recent experiences booking an Australian hotel on Agoda? Will an International Transaction Fee apply? I realise that some CCs don't charge this fee anyway but it seems Citibank does.

The customer can never know for certain even if the company “says” they charge in AUD. If the parent company is overseas you get hit with conversation charges. Remember it was not that long ago that Sydney Aquarium processed all CCs through the parent company overseas so customers were hit with the DCC fee.

Even if you ask the company, the agent may not know.

IMHO such bank ripoffs should be made illegal by Reserve Bank and be subject to ACCC oversight, but pigs might fly.

Only guaranteed solution is to use something like 28 degrees for international transactions or book direct through Amex travel who charge in AUD with no surcharges.

 

[Austman]

Only guaranteed solution is to use something like 28 degrees for international transactions

Agreed, but how was I to know it (probably) is going to be an classed as an international transaction?

I'm in Australia, booking an Australian hotel with my Australian credit card with the prices quoted in AUD.

That my statement is now showing Agoda Hoofddorp NL is worrying.

 

[tgh]

The lack of transparency may be illegal in Australia.
I have had the ta come cap in hand for an int transfer fee because the aud amount paid on a credit card had to be forwarded o/s.
I though this was fair, I had, after all reaped a few points and the ta absorbed the cc fees.
It's all a bit of a jungle tho…..

 

[Austman]

I just called Citibank and they stated that the International Transaction Fee of 3.4% will apply.

They also admitted that it can be impossible for the customer to know where the merchant will process the transaction.

It doesn't seem too right.

 

[Austman]

And I've just called Agoda to see if they would allow me to swap payment over to my 28 Degrees credit card.

They couldn't swap the card but they offered to refund 3.4% to my Citibank card. That was nice of them although the whole situation should really have be more transparent from the start.

 

[TheRealTMA]

Agreed, but how was I to know it (probably) is going to be an classed as an international transaction?

I'm in Australia, booking an Australian hotel with my Australian credit card with the prices quoted in AUD.

That my statement is now showing Agoda Hoofddorp NL is worrying.

So it’s changed through the Netherlands and attracts a bank ripoff currency conversion fee.

That’s the problem that needs to be addressed by the Reserve Bank or the ACCC. There is no way to know until you have made the payment and been ripped off with currency charges.

Westpac hit us for $900+ in currency conversion when we booked through Emirates Australian web site and were billed in Australian dollars, just because the charge was made through the Dubai office. We were forced to cancel the flights.

Just like the appalling behaviour of QF if you book through the Australian QF site for non Australian flights. They force you to use “their” overseas hub and you then get hit with currency conversion fees.

Should be illegal.

 

[Austman]

Just like the appalling behaviour of QF if you book through the Australian QF site for non Australian flights.

At least Qantas warns you that you will be taken to their foreign site and charged in foreign currency.

Agoda did none of that.

 

[mannej]

It is a pity that this still happens when there are airlines etc who make it clear about the possibilities of DCC.

 

[N860CR]

Had the same issue with Westpac and a VN flight booking (roughly $8000 worth). "Charged" in AUD, but Westpac hit me with the Intl fees. This was just after they were forced to refund something like $20m of fees to customers for doing this without disclosing it (although the little smartarse girl from Westpac didn't believe that).

It's shocking conduct that simply should not happen in this "first world" country. Our useless government departments seem to want to do nothing to stop it

 

[Austman]

After booking and checking my credit card transactions on-line, the "pending" transaction states : "Agoda Hoofddorp NL" with the exact AUD amount. So, The Netherlands? ...

Now that the transaction has gone through (it's no longer "pending") it now states: "*GCS AGODA INTERNATIONA ROZELLE AU" - ! So now it's an Australian transaction? It's the same AUD anyway ...

How can anyone be expected to work out what's happening??

 

[TheRealTMA]

Now that the transaction has gone through (it's no longer "pending") it now states: "*GCS AGODA INTERNATIONA ROZELLE AU" - ! So now it's an Australian transaction? It's the same AUD anyway ...

How can anyone be expected to work out what's happening??

Buy bank shares.