Guests being charged international bank fees

[Danielle212]

My last guest just asked me why she was charged an international fee on her bank statement and it makes no sense to me. Both my guest and my property are located in Australia so everything is in AUD.

Can anyone advise why she would be charged an international ban fee on teh transaction?

Cheers

Dee

[Jessica-and-Henry0]

@Danielle212

I'm not sure why your guest is asking you about charges and fees. All of that is handled by Airbnb. One of the main reasons we go through AirBNB is because they handle PAYMENT, and that is why hosts and guests pay service fees. 

Any payment the guest made is paid to Airbnb, not to you. And any money you recieve as a host is paid to you by Airbnb - you do not get any direct payment from the guest. 

Please tell your guest to contact Airbnb, and don't get involved. 

It's nice that you want to help your guest, but please don't take on any problems or responsibilities that is between the guest and Airbnb. Because of well-meaning hosts that only want to help, many people assume that anything that goes wrong and all problems are the HOST's doing, and that the HOST can fix everything - when the reality is, the guests and hosts are both dependent on Airbnb for a smooth transaction. 

[Danielle212]

Hi,

I understand what you are saying and my guest is going to ask Airbnb why, she is not expecting me to fix it.

In saying that I also would like to know why being we are both in Australia and I also book my accommodation in Australia through Airbnb and yet I haven't been charged  any international fees.

This is a question I personally would like to know the answer to for future reference as I travel extensively in Australia and I would be very disappointed if I got charged international fees while travelling in my own country.

Cheers

Dee

[Heather299]

I also have just booked AirBnB accommodation within Australia for Australian property and charged a Foreign Transaction Fee as well, it has happened before too, not happy!

[Danielle212]

Hi Heather,

I never got an answer to this question.

Please use the help function and ask AirBnB direct.

If you get the answer can you please let me know to?

Cheers

Dee

[Simon237]

AirBNB cannot help, as it is the guests's bank that are charging the fee. Contact your local MP and ask for a banking royal commission. The big banks are stiffing their customers, and get away from it.

[Simon237]

The major Australian banks (in their quest to screw over their customers as much as possible 🙂 will charge you a foreign transaction fee when your payment is processed overseas, regardless of the currency used (including AUD). AirBNB payments are processed in the USA, so you will be subject to the fee.

[Simon237]

For example, from Westpac's site:  "A Foreign Transaction is any Purchase ... made using the Card in Australian dollars or any other currency that is processed by an entity located outside Australia"

https://www.westpac.com.au/personal-banking/credit-cards/manage/fees-interest/minimising-fees/

[Danielle212]

Thanks for the response Simon really appreciate it.

I'm with CBA and they haven't charged me with any so that's great, if they haven't already they shouldn't in the future.

Cheers

Dee

[Margaret--Margie-0]

Would it be possible for Airbnb to maybe advise guests that some Australian banks may charge these fees. It has been brought to my attention by a couple of my Australian guests using my Australian Studio, some banks add the Foreign Currency Fee. Nobody thinks it is fair and reasonable as they, and we believed that what Airbnb was taking from guests was the total of the transaction, not to read in your monthly statement there a had been an Foreign Currency Fee deducted from your account!

[Simon237]

Short answer: No. Not all banks charge a fee when they bill in AUD, but the merchant is not in Australia. It's up to the user of the credit card to know the fees they will be charges when using the card.

This isn't unique to Airbnb - it applies to all transactions where the merchant is located overseas. My bank charges more if the overseas transaction is in a foreign currency (2.3%) as opposed to AUD (0.8%), and state "It may not always be clear to you that the merchant or entity processing the transaction is located outside Australia.". It's not in the fine print either, it's clearly stated on the credit card page.

[Wendy608]

In 2018 my deposit using an Aus credit card for an Aus AirBnB property was charged in AU but the balance was charged in US incurring an international payment fee. My bank said that the problem originates with AirBnB and advised me to block international payments if I wanted to avoid it happening again. I blocked international payments. Then the same thing happened with HomeAway.  My reservation was rejected with the reason stated as lack of funds, but then I tried again and it went through in AU. I think the banking system needs to be reviewed and that AirBnB and HomeAway should disclose this practice.

[Simon237]

What banks charge is beyond AirBNBs contol. At the end of the day the user is responsible for knowing the fees that their bank is charged. Charging for local currency transaction processed overseas is a feature that is unique to Australian banks AFAIK. I know that in New Zealand, there is no fees charged for this.

As for the baning system being reviewed, that is why we have a royal commission. However, I don't think this particular issue is being covered (from the media reports I've seen)

[Ben678]

I was swindled by the NAB for the same thing in Aust.  Does it make a difference if you pay using PayPal?

[Lyn94]

I recently booked two airbnb stays in Australia from Australia, paid the deposit with Paypal and was charged a foreign  transaction fee.  I contacted airbnb and changed my payment method for the balance to be charged to my visa card.  And wasnt charged a foreign transaction fee. It is Paypal that was charging the Foreign Transaction fee!!!