Avoiding the Foreign Transaction Fee

Terrence0
Level 10
Mount Prospect, IL

Avoiding the Foreign Transaction Fee

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.

225 Replies 225
Sule1
Level 2
İstanbul, Turkey

Never mind the transaction fee - the rate of exchnge itself is a rip-off. I got charged 20% over the ongoing rate, plus 3% transaction fee!! Basically airbnb took one of the highest exchange rates ever, back in January, and are still using it in June. This is purely and simply a con. The web site forces you to pay in the currency of your place of residence, the exchange rate is dubious (they say they update it regularly but not in real-time - 6 months later they are till using the peak exchange rate), and then they have the cheek to charge a 3% commission to "cover the risk". Fair enough if they didn't force people, but unacceptable since they are.

 

I'm contesting but don't seem to get anywhere. This is stupid of them. They may have made a few hundred $, but they will lose a customer and many more $ unless they resolve it.

@Sule1 - You are correct..... a rip off.  It does add up when you are a fulltime traveler like myself. I wish I had more options and try not to use airbnb when possible.   

Alex479
Level 2
Burnaby, Canada

I encourage all Airbnb users to counteract this fraud on AirBNB's behalf by at all times attempting to contact the Host personally. This can be done - or see the flat first . Make the booking privately and avoid this unethical money grab. Or if you stay a second time with the same person in that city, by all means do all you can to contact them privately and outside AirBnb.

 

Airbnb needs to lose enough money to see how despicable and unethical their behaviour is with regard to not allowing customers to simply pay in the native currency using their zero foreign exchange fee credit cards.

 

I have looked this into and its annoying as hell, it is blatant thievery, fear not there is always a way if there will, and will I have - I have found a solution, not a convenient one but at least a working one.

Use VPN or PROXY, to change your online IP to the country you wish to be, ie the country that the property is located in, then create an account and apply, of course the downside is you need a new account for this, if you attempt to log in with your usual account then your location is assumed as the original one when you registered and you are stuck with that. An additional note is you will also be paying the VAT tax of the country that AirBnB assumes you are from, and if you are traveling in europe expect a VAT of around 20%.

This will probably get deleted by a moderator soon soak it while its wet!

What you could do simply open multiple accounts for the different currencies you visit throughout the year, and just live with that, have an 2 accounts in europe, one for euros one for pounds, 1 for the US in USD, and so on

I was using the similar account with settings not been changed but money charges is of different currency

And few thoughts about "your country" - I'm citizen of one country, resident of another and living in third one. (Included that I registered at AirBnB in third country for it's phone number). But they use my country of citizenship to determain currency so they pushing me to double convertation, instead of just change of what host want to recieve!!!

@Dmitry18

 

Just a rip off by airbnb.  They told me it was based where your county of origin of your credit card/bank is issued from.  Either way its a crappy policy to hide fees for us their customer. Bad for both the Host and Guest.

Noe5
Level 1
Singapore

I was shown sgd but was charge with usd. In the end, I paid even more then what was stated. Call airbnb and no solution given just give me a pack of nonsense saying it's like that

@Noe5

 

Yes, Airbnb has poor customer service.  Try using Twitter or Facebook - you may get a better result.

 

 

Alex479
Level 2
Burnaby, Canada

I don't see how any of these proxy solutions can ever work. Airbnb ties the 3 percent forex fee to the origin of the card on file which won't change with the proxy info. They can somehow read where the card is from.

 

It's a fraud . Any pos terminal of any merchant can bill in native currency , much less any online service ! 

 

The only solution I can  imagine today (especially for EU residents) is to get a virtual card from revolut and then top it up using your no foreign exchange fee us or foreign card. These cards can show a specific currency but I never tried it. virtual card is only in the computer. It's very easy to open it and fund it .

 

 

@Alex479

It is amazes me that a company that is reinventing hospitality travel can be so poor in customer service (taking after many hotels with “resort fees” and all the airlines and their hidden fees).  Not only is the 3% a rip off the money conversion (my credit card does it for free) - the conversion rate airbnb uses is always dramatically in their favor TOO.  Plus the 3% Conversion fee is hidden in the charges - it took me 3 bookings to even see that they were ripping me off for the 3% as I have booked over 40 stays over the past 14 months.

 

I don’t see how any of the work around will work (but I’m open to try) as airbnb knows what country your credit card is associated with - this makes me want to go around the platform (because they are ripping me off) and book directly with hosts and try other options.

 

When I get back to the states I’m going to visit this with the Better Business Bureau as well some Consumer Protection agency for better price transparency at least – not that the 3% isn’t a rip off – but it will be a start as Australia got airbnb for Drip Pricing (poor price transparency).  

Miloslav0
Level 1
Windsor, United Kingdom

This won't help. The bastards from AirBnB recognise the card as issued in UK and will switch to GBP and surcharge you 3% stealing fee despite they can just charge the card in USD and you would get mid echange rate. This is form of scam from AirBnB and they are well aware of it and won't change it. This gives them 3% extra net margin on all foreign bookings with no costs whatsoever.

Yes sir - its a rip off that they say is to cover "risk"  -  We need to keep on them about this.

 

Here is the reply from Airbnb:

 

Rob N, May 9, 17:18 CDT:

Hello Jeff,

I'm sorry that you've been back and forth a few times with a few different case managers. Bottom line, if a guest is paying in a currency different from the default currency of the country where the listing or experience are located, Airbnb will charge a 3% conversion fee on your total cost; the conversion fee accounts for Airbnb’s holding costs and foreign currency risks.

 

Thanks so much and sorry if you're displeased with the fees Airbnb applies to particular reservations,