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

This is really a hidden fee and a money grab by airbnb.  These 3% fees really add up after spending a year travelling outside of the US.  Especially as you say - when you have a credit card that already doesn’t charge any foreign transaction fee.  Let me just use my US credit card to pay in the local foreign currency for the host with NO 3% fee.  Shame on you Airbnb - my car rental company, restaurants/ airlines, foreign train tickets, other booking sites do not charge the 3%. This forces me to book elsewhere when possible. Not a way to build a hospitality brand in my opinion – I hope airbnb doesn’t go down the route of the airlines and all the crap fees they impose on their customers.

Indeed I'm about to book my first rental on AirBNB and I just realized that, it will be my last booking on this platform.

The booking costs me more than 10€ in hidden exchange fee although it would cost me 0 paying in local currency with my credit card.


@Samuel117 wrote:

Indeed I'm about to book my first rental on AirBNB and I just realized that, it will be my last booking on this platform.

The booking costs me more than 10€ in hidden exchange fee although it would cost me 0 paying in local currency with my cred


 

I'm so happy to realize I'm not the only one seeing this. I also just got charged this fee and it's totally against their own policy clearly states under their "Can I pay in any currency" article. I wasn't even notified of this fee at checkout. And who's airbnbto charge a freakin foreign fee? They're not a cc company. A $100 charge on top of their $250 fee is a significant amount. I'm definitely disappointed as well and will not be encouraged to use them again. Charging me a fee without my consent is straight-up theif behavior. Airbnb, if you think you're smart, think again! This is not the way to build a long lasting relationship with your users. You're gambling with your own reputation.

dam right bro this will be my first and last international airbnb transaction, as i just calculated a hotel room same price and dailey hoouse keeping comes with.  

Anyone has a way to avoid this?

 

My bank charges 0 and Airbnb charges 3%... for a $1,500 rental that's not negbligible.

 

Airbnb skimming off the top here

Amy-and-Becca0
Level 3
Portland, OR

I tried to communicate with AirBNB over this.  I am one of those travelers who specifically has a credit card without foreign transaction fees.  AirBNB is just siphoning off another hidden fee. And their currency exchange rate is not at market, increasing their take.

 

I called and emailed AirBNB to no avail.  I told them that both VISA and Mastercard vendor agreements require that customers be given the option of paying the local currency.   They send a canned response each time.  In fact - the price on the apartment I was in the process of booking, suddenly jumped up in the middle of my back and forth with them.  I gave up, fearing that I would be penalized for pursuing the question. Ultimately they said the following:

Hi Amy,

Thank you for your reply.

 

I completely understand your question, however the currency in which you pay in is based on the currency you have set on your profile, as well as on the currency supported by your payment method.

If for example you're paying with a credit card issued in the US, you'll be charged in USD.

I checked your profile and saw that you have the currency on your profile set as USD. I also checked the card that you used to pay for this reservation in question and it was issued in the US as well.

I can assure you that I completely understand your point but unfortunately that is an automated system feature.

I'm really truly sorry about this and I wish I really could do more but unfortunately this is a feature that we are unable to overcome.

If you need any further clarification don't hesitate to reply, I'll be happy to help.

Have a great day,

Vanessa A
www.airbnb.com/help

In other words, she understands the question but will do nothing about it! How long would it take them to put up a page explaining the charges and the options available.  why do they basically hide it? What is the problem they have of paying into or taking monies in the currency the property is advertised? There is no FX risk. 

@Steve306

 

Yes.  It is a hidden fee as well as the crappy currency exchange fee.  Total rip off.  These 3% conversion fees and exhange rates that VRBO/Homeaway do not charge.  I would hope some lawyer gets a class act going.  If airbnb wanted to make more profit they should just raise their rates and then we as consumers could decide - dont hide them.

I agree this is a rip-off.  The customer should be able to pay another person in the currency of their choice.  Why should AirBNB make money out of Service fees and force take on foreign exchange at unreasonable rates.

This is really a hidden fee and a money grab by airbnb.  These 3% fees really add up after spending a year travelling outside of the US.  Especially as you say - when you have a credit card that already doesn’t charge any foreign transaction fee.  Let me just use my US credit card to pay in the local foreign currency for the host with NO 3% fee.  Shame on you Airbnb - my car rental company, restaurants/ airlines, foreign train tickets, other booking sites do not charge the 3%. This forces me to book elsewhere when possible. Not a way to build a hospitality brand in my opinion – I hope airbnb doesn’t go down the route of the airlines and all the crap fees they impose on their customers.

 

Airbnb has plenty of SDE (Software Design Engineers) that could easily fix this for all of us.

Derek43
Level 2
Musquodoboit Harbour, Canada

So, what's the problem?  Surely you just change the currency on your profile. Which I have done more than once. When booking in Europe, I set it to Euros and use my no-forex British Amex. In the UK, I use my British Cards and GBP and in Canada and the US I use my Canadian cards and CAD.

The problem is that Airbnb will still charge you the currency conversion fee one way or another. They won't allow you to book in Euros and save 3% + the difference in spot rate (can be 10% difference). 

Its a big hidden fee in my opinion.  It took me about 3 bookings to even realize it.  You can switch the currency to match the country your booking in but if your card is issued in the US then no mater what I do to switch to euros I still get 1: a crappy exchange rate and 2: a 3% conversion rate.  That’s is even with a Chases Sapphire Reserve card that has NO foreign exchange fees - an airbnb money rip off.  From what I read on line, airbnb changed it from what your described a couple years back.

 

I can't comment on your exact situation, but I have over 30 stays in Italy, UK, France, Scotland, Ireland and Costa Rica and have not found a way - nor have I read online of a way.  

 

Airbnb told me that my card is issued in the USA and so I will not get changed the 3% if I book in USD. All others and I get charged 3%!

 

Its really sneaky - read near the bottom of the invoice page.....but your 

 

 

Its a big hidden fee.  It took me about 3 bookings to even realize it.  You can switch the currency to match the country your booking in but if your card is issued in the US then no mater what I do to switch to euros I still get 1: a crappy exchange rate and 2: a 3% conversion rate.  That's is even with a Chases Sapphire Reserve card that has NO foreign exchange fees - an airbnb money rip off.  From what I read on line, airbnb changed it from what your described a couple years back.

 

I can't comment on your exact situation, but I have over 30 stays in Italy, UK, France, Scotland, Ireland and Costa Rica and have not found a way (yes I switch to pay in the hosts currency) - nor have I read online of a way to get around this.

 

Help …. am I missing something? I can only get a US credit card.  

 

Its really a sneaky fee - read near the bottom of your invoice page:

 

Cancellation policy: Strict. Certain fees and taxes may be non-refundable. See here for more details.

A 3% conversion fee was applied to this booking.

Airbnb Payments, Inc. ("Airbnb Payments") is a limited payment collection agent of your Host. This means that upon your payment of the Total Fees to Airbnb Payments, your payment obligation to your Host is satisfied. Refund requests will be processed in accordance with: (i) the Host's cancellation policy (available on the Listing); or (ii) Airbnb Payment's Guest Refund Policy Terms, available at  Questions or complaints: contact Airbnb Payments at 855-4-AIRBNB (855-424-7262)

Explanation of Security Deposit
If the Host reports damages to Airbnb within the 48-hour window following checkout, Airbnb Customer Service will be in contact with both you and your Host to make sure both parties are represented fairly. Additional details regarding the Security Deposit are available

 

From the airbnb website (which is confusing)

Exchange rates and currency conversion

When the currency you’re paying with is different from the default currency of the country where the listing or experience are located, we convert your payment automatically.

The base exchange rate uses data from one or more third parties, such as OANDA. It’s updated regularly, but may not be identical to the real-time market rate. If you’re paying in a currency different from the default currency of the country where the listing or experience are located, we also charge a 3% conversion fee on your total cost; the conversion fee accounts for Airbnb’s holding costs and foreign currency risks.

The exchange rate used will display on the checkout page before you confirm your booking.

@Derek43

 

Forgot to paste a real answer from airbnb:

 

"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. What I can do for you right away is filing your feedback to the development team concerning demand for an option to select currency to pay in, I hope they will take it into account and implement it on the future website updates. "

 

Yep....total rip off, especially when you combine it with a poor currency conversion vs what a credit card gives you.  So it is a "popular complaint" ...... but no action. Its so hidden I know I missed it and have had freinds miss it too.