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.

[Rien2]

Sharing economy...

Why doesn't Airbnb share with us? 🙂

shame on you Airbnb 😞

Money grab for sure!

[Mckenzie3]

Agree 100% that this policy is unnecessary and hurts consumers. I hope Airbnb reverses course soon. In the meantime, I've been looking at competitors that don't do this. 

[Jeff-And-Cheryl0]

@Mckenzie3 -- Big hidden charge....just plain wrong for a disrupter to follow treating customers crappy like many airlines and hotels (Resort fees).  Its nice to supprt a VRBO or Homeaway when possible - but airbnb has had much more availability where we travel to - but just booked a month in London on HomeAway in a week.  Keep up the direct complaints to airbnb!

[Lynn131]

I live in the uk, therefore will be paying in sterling, which will be converted to US dollars before being converted to Euros....surely this can't be right???..

Does this mean I will be paying the conversion fee twice?

[Jeff-And-Cheryl0]

@Lynn131

From what I have seen in my 30+ bookings in Europe/Costa Rica/UK, as well as my communication direct with airbnb - If you are booking in a country that uses different currency then where your credit card is issued you will pay the 3% Conversion Fee – ridiculous and is very hidden in the booking process – PLUS airbnb will use a money exchange rate much worse than what your credit card would have been. Hard to believe it, but they are getting away with it. VRBO/Homeaway does not do this – but they do not have the selection of homes as does airbnb.  Keep voicing your concerns to airbnb direclty. 

[Steve306]

I have just been charged £817 for transferring €8000 euros into a sterling account, even though I have a Euro account and a Pay Pal account; It was done automatically without any breakdown on the charges or even given the option. I am sure its illegal in the UK or Europe to transact this way and it is extremely difficult to find any documentation that set out their fees or exchange rates offered. They have not listed what fees they charged or what exchange rate they used. This sadly can only be described as basic theft and fact that they keep the information almost hidden from you suggest a scam. I am generally very happy with the service I receive from Airbnb, but this calls into question how ethical and transparent an organisation they actually are.

[Helen322]

I'm glad that I came across this and, yes, action, even legal one, has to be taken. Mentioning something in the rules doesn't mean it is made legal. I used to be a HUGE airbnb fan up to this morning, my only complaint being the logo change. Not anymore. I think I'll start trying to work arrangements off-site -- especially if after checking my card account today I see things that I didn't notice earlier (I've spent about 5k dollars on airbnb this year; afaik).  

Anyway, I came here while searching for the problem discussed in this thread:

https://community.withairbnb.com/t5/Help/Price-changes-after-proceeding-to-booking/m-p/472830

I'm not sure it's related to the hidden fees, but it might well be. Does anyone know about it?

And, please, if anyone has to recommend an orchestrated action, maybe through consumers' rights organizations, please do.

[Helen322]

Update: I think that the hidden fee is indeed the reason of this discrepancy. I notice that both in the linked thread and in my case the difference after hitting the button is very close to 3%...

[Jeff-And-Cheryl0]

@Helen322

Yes. It took me 3 bookings to figure it out.  No way to get around it if you are booking a place other than in your where your credit card is issued from.  Total rip off by airbnb and hidden.  

[Peter569]

Glad others have spotted this too - bad form, AirBnB...  3% mandatory currency exchange fee even when lots of us can convert currency for free is really bad form :o\ unfortunately, it's lucrative for them, and I dare say that at a board level they are likely clear that their primary mission is to increase profits.  So why change?

It would take someone AirBnB's size taking them to court, or a comparable competitor coming along who don't charge this - but will enough folk notice enough to change platform?

Sad to see this sort of practice...

P

[Jeff-And-Cheryl0]

@Peter569

It's truly a money grab and that 3% fee is very well hidden in the transaction process.  I hate it - with over 30 stays this past year outside my US based home. I have started to use HomeAway more when I can find what I need.  At least they should be transparent about the 3% and put it in the FEES so the consumer can make an informed decision.  Oh and the currrency convesion rate is always in their favor and again a couple of percent worse than what it should be.

Plus its not like airbnb has good customer service ..... wait to you need help and follow up .... it gets very frustrating.

Bring on some competition, please!

[Peter569]

http://uk.businessinsider.com/airbnb-charges-a-sneaky-3-per-cent-conversion-fee-on-bookings-2017-4

... thought you might be intrigued

[Jeff-And-Cheryl0]

Its going to come out eventually - On another similar note - glad to see United Airlines in the US roll back its "Basic Economy" fares today - but at least they had competition so the consumer voted to fly other airlines.

Any Board of Director member with airbnb with 1/2 a brain would tell them to clean this up.  Yes, improve profits but not in such a crappy underhand, hidden way.  Airbnb is supposed to be a disrupter -  so why would you follow the crappy "hospitality" model of most hotel chains of treating cutomers poorly that they are suppsed to be disrupting?  Just piteful that a start up tech company goes this route.

[Helen322]

So, I don't know if this part was the same before, but the new regulations,

https://www.airbnb.com/terms/payments_terms ,

include this incredibly transparent and helpful statement:

--

2. Key Definitions

“Adjusted Exchange Rate” means the Base Exchange Rate plus a 3% fee charged by Airbnb for certain cross-border transactions.

--

The term is liberally used in the rest of the text.

No clarification about which are the "certain" transactions.

(Of course, needless to repeat, it shouldn't even be there. Online payments in other currencies are automatically taken care off in a way that ensures the final payment is the exact amount stated in the destination currency. I even bore myself by having to repeat the obvious.)

[Jeff-And-Cheryl0]

@Helen322

Thanks for sharing! 

Not sure what is said prior .... but I have seen airbnb getting bad press and maybe legal pressure.  Having a fee hidden in the FAQ's or Terms and Conditions does not make for a good consumer experience or being transparent in your order process.  Im getting ready to book an airbnb stay (no option for this one to book elsewhere) this week so will see if the booking process makes this transparent. My beat is it will not be transparent.  Agree 3% is still crazy!