Avoiding the Foreign Transaction Fee

[Terrence0]

I have a suggestion for Airbnb.  Currently, they have a very inefficient policy that they pass off onto the traveler.

I have a credit card that doesn't charge foreign transaction fees (like many other avid travelers) - my bank covers these fees for me.  Airbnb charges foreign transaction fees to book based on location - in fact, if you are booking and you switch the currency to the local currency of the listing, you will see a 3% lower cost (the foreign transaction fee cost) than if you look at it in another currency.  For my last 2 trips I have attempted to pay in the local currency (for example, if I am travelling to France, I will try to pay in Euros), but Airbnb will not let me do this.  Instead, they force me to pay in US dollars because I live in the US (even though I want to and have tried to pay in Euros), then they take my US dollars, convert them to Euros themselves, charge me a 3% fee (which my bank would have done for me for free!), and then pay the host in Euros.  This is dumb and inefficient - even worse, they pass this inefficiency off on me.  Give customers the option to pay in the currency of their choosing.

[Petterson1]

Dear all, I want to report that Airbnb has stopped tricking me with the hidden fee thing! I cannot tell whether they have made it a platform-wide policy to be honest and transparent, but I know for sure that they were charging me those fees wherever I booked and whichever card I used - but not they are no longer. It is a relief. I really hope that this has not changed just for me because I complained.

[Jeff-And-Cheryl0]

@Petterson1 I noticed it on my last booking for a June stay in Amsterdam.  I wasn't sure if it was because I used Gift Cards for the majority of that purchase or what .... but that is a good sign.  Maybe it was the class action lawsuit that was brought against them in Montreal.  I have some more booking coming up in the next 2 weeks so will report back.  Fingers crossed!

[Manfred25]

It is a complete nusiance, I would dare call it a scam, at least it is a hidden cost driver. Airbnb admits to it by stating thatthey use an exchange rate other than the relevant banking rates to "cover their services". But that is what we users pay the service fee for. Which is ok. If it is not enough, then raise the service fee. But don't add a profit on a service that credit card companies can better provide. It is alo discrimiating against clients from smaller currencies (if you hold an USD or Euro credit card at least you will not have to pay these fees for bookings in your own large currency area. Smaller nations/currencies will have to pay it almost on every occasion they travel.

BTW you will find a similar policy in many shops when paying with a foreign card - but in most cases you will be prompted to choose between the local and your card's currency. It is almost always better to choose local !

[Michal31]

It's even more ridiculous! I've got a card that I can switch between multiple currency accounts and I usually do it when I travel. Everywhere else it works perfect, but not on AirBnb. Because the issuer currency is different, AirBnb shows my original bank currency, then forces me to do DCC and pay the fee even if finally, it is charded from the same account currency I book the place!

It's a thievery! Shame on you AirBnb!

[Steve306]

What is needed is transparent disclosure, which Airbnb ARE NOT DOING and they do make it very difficult to discover and how these additional charges are applied and on what basis. They can, of course, charge what they like, but I believe this warrants investigation by the respective financial authorities of each country, I believe they are in the UK/EU are acting illegally.

[Jeff-And-Cheryl0]

@Steve306

Canada has started a class action against Airbnb.  Google: Quebec airbnb lawsuit.

Sorry I can not post a URL.

[Matthew306]

I found Air bnb basicallu lying to me through their App. They know all about it so whilst lying might be a stromng word, it's entirely true!

They know my location, they know where I'm searching.

As I go through the process of requesting a reservation with the host, they quietly build the price up on each click and on the final page they try to quietly throw in the 3% extra. At each stage until this, they've quoted a cheaper price.

Do they really think people are that stupid? Judging by some of the replies to this conversation unfortunately some people are, but the problem is more a lack of experience of international travel. Wake up people, these companies are trying to eek every penny, krona, cent out of you.

So when I see price building, I know the man or lady at the top knows all about it and just wants to rip me off and take more than they should, whilst hiding behind a don't call us policy.

If they weren't really doing this, they'd show me the actual price they propose to charge right at the beginning (as they knew the locations in the beginning). Perhaps it's too hard to swallow, being honest I mean.

The sooner this is made illegal the better.

Shame on you Airbnb I will tell everyone I know and I didn't book I'll find another way.

[Caroline493]

Hi everyone, I see this post is from about a year ago and I'm trying to find out if this issue was resolved? I am a U.S. citizen with a U.S. bank account and U.S. credit card. I am currently out of the country in Argentina, and trying to book a place for my return in about 1 month. My host has offered me a special price which I would like to book, but then I noticed that the application is proposing a bill for me in pesos and I believe this might hit me with an unnecessary foreign transaction fee. My credit card is an international card that does not card fees. Since I am looking to rent for about 4 months I am worried that the hidden exchange rate and fees could effect my booking substantially. I wrote Air b n b in the meanwhile but was wondering if anyone had any updated information? Thank you!

[Jeff-And-Cheryl0]

@Caroline493

Hi Caroline. We are full time travellers from the US with a Chase Sapphire Reserve card (no foreign tranasaction fees) BUT .. Airbnb will still attach a 3 % conversion fee (along with a poor currency conversion- OUCH) --- its very hidden and right now there is a class action lawsuit in Canada regarding how they hide this fee.

If you have a US address with a US address attached to it you will be chaged the 3% (Hidden) Conversion Fee.  Keep the pressure on airbnb via the BBB/Consumer Protection and social media.  You may want to ask the host to cover the 3% or at least split it.  This 3% is bad for the host too as they get 0 from it and it just makes the rental more expensive.

Here is Airbnb respnse to me: 

"Conversion fee applies if you pay in another currency than the host has listed the property. Your currency is determined by your country of residence and your billing address of your payment method. So for example if you have US bank account and you book a place in France (EUR) 3% applies. 

I know this is frustrating, and this is a popular complaint, but at the moment the system works this way. What I can do for you right away is filing your feedback to the development team concerning demand for an option to select currency to pay in, I hope they will take it into account and implement it on the future website updates"

If you find anything different please let the group know as this 3% really adds up!

-Jeff

[Caroline493]

Thank you for your reply, Jeff and Cheryl! Do you know how the 3% is applied? Is it per booking, or per monthly payment? Does it show up calculated in the "Final Cost"? I am so confused. 

[Jeff-And-Cheryl0]

@Caroline493

If your booking a place in the US with a US card there will not be a 3% conversion.  Need to make sure you switch the currency you want to pay in to USD$

[Caroline493]

Ah, I shouls clarify that I am trying to book a place that is located in the U.S. while I am currently in Argentina. 

My bank account is a US account, my credit card is in the US.

I have the settings set to payment in USD, but for some reason when I go to pay it shows the bill in pesos?

[Caroline493]

Thanks again for your input, Jeff and Cheryl! I now think I have solved the problem– for some reason, the bill for the rental shows up as pesos automatically based on my location. Then if I click through the initial "1. Review House rules", then "2. Who's coming?" screens, the final screen allows me to set my "Billing Country" and once I select my U.S. credit card, the option in U.S. dollars finally shows up! But it is automatically set to pesos, and only shows the price in dollars one my U.S. card is selected. So at least I think in this particular case, I was able to work it out! Hopefully these comments may be helpful to others in the same boat!

[Jeff-And-Cheryl0]

@Caroline493

Glad you got it worked out!

[Florin7]

This is violating consumer rights, at least in Europe.

I had no payment card on file, and attempted to pay for somehting in CZK.

I add the payment card, press pay and surprise! It was charged in GBP because the card was UK-based.

!!! IT WAS NEVER STATED THAT I WOULD PAY IN A DIFFERENT CURRENCY AT CHECKOUT !!!