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.

[Deep6]

I had a lot of repect for Airbnb and this is really sad. Airbnb is becoming the new AT&T.

Airbnb, just charge whatever fees you need to. You provide an amazing service and I have no problems paying a fee for it. This fee is has nothing to do with currencies. You are just calling it a currency fee because it is an easy place for you to hide an extra 3%.

This makes me sick.

[Jeff-And-Cheryl0]

@Deep6

Could not agree more .... plus airbnb uses currency exchange rates that are not as real time as you would get with your No Conversion Fee Credit Card - which gives them even more hidden revenue.  Not only does this impact the guest but it makes the host property move expensive so the host may get less booking days. ----that is probably why airbnb has gone to the trouble of in my opinion hiding these fees vs just putting them in the up front fees and letting the custmer decide.

Love the Airbnb concept but this is just Shameful. FIX IT AIRBNB.

[Julius14]

I think Airbnb really needs to reconsider this. They are already making great profit from their service fee. 3% fx exchange rate should be cut to at least half. But the most annoying thing is the "hidden" or at least not very transparent fx rates that they are applying, when booking in foreign currency.

I am currently looking at a condo in Bangkok for one month rent. The current fx rate is 1 SEK = 4 TBH, but Airbnb is using 1 SEK = 3 TBH, that is 33,33% additional on top of the original/current fx rate!

Then plus their 3% fx fee and 12,5%ish service results in almost 50% fees... Seriously, they need to stop being this greedy and start serving and helping their customers instead of their investors!

[Ronald48]

It is actually worse than that.  I live in Ireland and have tried to pay in euros from my Irish bank account but Airbnb still forces me pay in USD for listings in Europe.  It seems to be their sleezy way of getting an extra 3%.

[Mike372]

I have just realised that there is more to this sneaky rip-off. The VISA and MasterCard both maintain that Dynamic Currency Conversion should always be optional. It seems that in order to get around that, AirBnB choose the country in which an online transaction is held to take place. I booked a room in the US from the US but was forced to pay in sterling because that is what my card is billed in - why that is AirBnB's business is another question. What I did not appreciate at the time is that as well as exposing me to their expensive foreign exchange scam, they also charged me UK VAT at 20% on their fee. How do I end up paying UK VAT on a transaction that any reasonable person would regard as taking place in the USA?

[Jeff-And-Cheryl0]

@Mike372 - That is amazingly sneaky and a rip off. Hard to believe they are getting away with this as well as the 3% Convesion rip off.   Hey airbnb - care to comment?

[Jason197]

....wow so I live in Thailand but use my UK credit card to book accommodation here and therefore pay 20% UK vat instead of the 7% vat rate?...as well as the 3% currency charges. Ouch.

[Jeff-And-Cheryl0]

@Jason197 - Wow!  That is awful. All these hidden fees that airbnb is getting away with.  

[Simon222]

It's not dumb or stupid what Airbnb are doing...it's simply a money making scam.  Don't you get why they're in business?

[Gayle28]

Yes, this is a colossal money grab on their part. They have over 20 offices worldwide with banks that are capable of paying their hosts in local currency without any conversion fee at all. I think this is reprehensible! I also think it's possible grounds for a class action lawsuit. Anyone an attorney out there? I'll volunteer to be named as plaintiff. Oughta be worth millions! 

[Berta19]

I have exactly the same problem, a credit card that does not charge me exchange fees but airbnb is charging me £60 on top! I am travelling to Canada and no disrespect but the country is not what I would say cheap! I have booked 3 airbnb so I will probably be paying over £150! I think people should be allowed to pay in the local currency if they want to. Airbnb is already getting money from us through the charges...

[Berta19]

Does anyone know if the currency changes once you have arrived to the country of destiny so it is possible to cancel the transaction and pay the local rate? 

[Jeff-And-Cheryl0]

@Berta19

I have found no way around this rip off by airbnb.  Where you credit card is issued from (in my case the US) that is your home currency (USD$) and if you book anywhere outside of the US and that currency is not the USD you get hit with the 3% Conversion Fee ….. in ADDITION to the crappy exchange rate that airbnb provides.  It does not matter what you change your payment currency too - even if your credit card doesnt charge YOU and conversion - airbnb still does.  Look at prior posts for a more in depth explanation. Send them your direct complaints as well as on Facebook.

Keep up the fight. It is a consumer rip off and very well hidden in my opinion. 

[Angela486]

The currency exchange rip off gets even more disgraceful

today a booking in South African rand of 4608 converted to €314 a 6.1% 'currency fee' 

[Jeff-And-Cheryl0]

@Angela486

Yes it awful.  Take the complaint directly to them via their Facebook as well as email. Maybe you have consumer watchdog organizations too.  Airbnb has had legal trouble with other hidden fees in some countries.  Time to end this crazy money grab!