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.

[Liz228]

I don't know that it will work. My VPN comment was originally to the first poster who wasn't sure how to set up or use the VPN in general.

I actually stopped using AirBnB for anything that will incur a foreign transaction fee. Which, for me at the moment, is pretty much everything other than transactions that occur in USD.

[Bernard150]

Airbnb replied to my query. They told me that it depends on the country from which the reservation is made. You are charged in the currency of that that country if even if you are paying with a US credit card in US dollars. I asked about using a US IP address. They said it might work. Tried changing my IP to a US address and it did not work. Besides wanting to save the money I wish could get to the bottom of this. If it is not the IP address, what is it?

[Jeff-And-Cheryl0]

@Bernard150

Here is what they emailed 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."

After 40 plus airbnb stays as a full time traveller I have found no way around it.  Bottom line ....if Im not booking a place in the US, I have paid the 3% fee.  PLUS when you look at the exchange rate between the USD and the hosts currency its ALWAYS in airbnbs favor vs what it would have been if they let my credit card do the conversion.

You can try to understand more from this confusing explanation on the airbnb website:

https://www.airbnb.com/help/article/95/can-i-pay-with-any-currency

Hopefully someone is working a legal angle on this.  It really is a Hidden Fee.

Best,

Jeff

[Bernard150]

Jeff

I received exactly the same answer from them.

Their system is set up that way worldwide and it will cost them a great deal to change  it, not to mention the income they will lose from giving up the 3%. It will take a lot of public pressure to force a change. 

This time I simply paid up because the property I wanted was by the far the best I could find for a large group booking. But I looked hard for an alternative and it will be my first priority to use a different system rather than pay this unfair premium. 

Happy travels. 

Betnard

[Helen322]

Bernard, just curious about how this turned out.

In this case the 3% would be even more absurd (since it's supposed to be a "safety" for transactions between different currencies).

Edit: I just now saw your update, "You are charged in the currency of that that country if even if you are paying with a US credit card in US dollars".

WHAT.

The 3% was unfair and unneeded, but a potentially understandable excuse in the case of different currencies. Now it is plain theft!

(PS: At least I'm happy that after this initial thread I got to extend a stay at a place that I found through airbnb, outside of airbnb. If the hidden fee hadn't occured I wouldn't have taken this path.)

[Chris678]

Very annoyed by this especially when booking 2 months in Spain using a no transaction fee credit card with preferential exchange rate! This is a stealth tax and as such should be outlawed. I'm actually not sure it is legal to do this in the eu!

[Jeff-And-Cheryl0]

Looks like Canada is bringing a Hidden Fees Class Action against airbnb. I know its has been reprted to US Consumer Agencies. I hope the EU is working on it too. Its crazy that the "smart" Board of Directors of this Company allow this to happen once a lawsuit is brought.

http://montrealgazette.com/news/local-news/airbnb-fees-contravene-consumer-protection-act-quebec-law...

[Eric-And-Lena0]

I too have a no-foreign transactions fee credit card. My gf and I are traveling internationally for 5 months straight and we got this no foreign fee card specifically for the no-foreign fee. If I had known that Airbnb still charges the 3% foreign fee then we probably wouldn't have paid the $95 annual premium to get this no-foreign transactions fee card. We are traveling to Asian countries where they don’t take credit card as much. Our primary credit card usage will be to reserve Airbnb stays. With Airbnb still charging the foreign transactions fee, that reduced the usage savings of my no-foreign transactions fee card by 90%.

I was extremely happy with traveling with Airbnb while within the US with no foreign fee. But with this 3% added, it really kills the imagine I have of Airbnb. Now I will have to factor in this unexpected fee into my 5 months spending budget. Very disappointed.

[Daniel592]

Avoid Airbnb and use booking.com, Agoda or contact accommodation places directly.

[Petterson1]

I've already started looking into alternatives. This is very disappointing because there does not seem to be something comparable, but just like with Uber, competitors won't take long to catch up!

[Jeff-And-Cheryl0]

@Petterson1

Class action in Quebec agaist airbnb for these Hidden Fees,

Quebec Lawyer lawsuit:

http://montrealgazette.com/news/local-news/airbnb-fees-contravene-consumer-protection-act-quebec-law...

[Mike456]

I just paid for a booking Australia with an Australian dedit card.  When I clicked confirm to make the payment the price was then converted in Sterling (which is interesting as my registered country is NZ!  So now I will have a crap exchange rate from AUD to Sterling, a 3% fee from Airbnb + a foreign transaction charge on my Australian bank account.  About time that someone got serious about a competitor to Airbnb.  

[Chris706]

I"m in FX business. Airbnb will string out the opportunity to control the FX spread as long as they can (until they are forced to offer fair practice) . In my estimation, the FX can represent around 20-35% of their revenues, or more. 

[Petterson1]

Wow, thank you all for sharing. I have been going through the same headache. I try to book a house in the US with a US credit card and they charge me a conversion fee because my address is registered in Brazil. Not I try to book in Brazil and pay with a Brazilian form of payment and guess what? They charge me a conversion fee because I am booking from the US!!!!

** Airbnb has now moved to charge hidden fees **

How does this match with the idea of "Belong anywhere"?

#Belong_anywhere_as_long_as_we_can_trick_u_to_pay_3-8%_more?

[Petterson1]

I have been discussing this issue with the Airbnb support team. They can have creative answers! Below they are saying that there are no hidden fees, I am the one who is comparing a booking with two nights to a booking with three nights!!! And this is because I sent them the print screens!!!

"My name is Amber, I am one of the Case Managers in Airbnb. I do appologize for this confusion as I mention over the phone this difference that you are seeing from your end is because of the chosen nights of your reservation you can also check this by going under your trips and cross-reference it to the screenshot you send us the reservation you retracted. I hope this help clarify the confusion have a womderfull day and happy thanks giving."