Cross-border fees is an additional hidden charge

[SauPing0]

Hi all,
I am really confused how Airbnb works. My wife lives in Hong Kong, book a flat, which is in Hong Kong and paid with Hong Kong dollars with her Hong Kong credit card. The Airbnb account was created in Hong Kong. She told me she got charge with 1% which is the cross border fees.

This is so bad. This is like a hidden charge. If she had booked a hotel in Hong Kong, there is no credit card cross check charge as everything is in Hong Kong. This will be my last time I will use airbnb. Her credit card based in Hong Kong said that airbnb requested and trigger as international rather than as Hong Kong airbnb. They must be asking other currency to their benefits. 
My first and bad experience for my wife. 
Usually you expect foreign currency translation charge from one country to another, but never expect from the same country. 

I got this link from airbnb ( not allow to post links)

Which does not help anything, as I can google that. The question who trigger the transation as foreign to Hong Kong, which I do not get. I was not involve with the transaction until it was confirmed and was chatting to the host about the address later.

[Marit-Anne0 · Accepted solution]

@SauPing0 

Indeed, the currency conversion charges are one of the ways airbnb makes money.  Your payment does not go to the host, it goes to an airbnb associate payment handler somewhere outside of HK.  In Europe the payment goes through Ireland for example; good for those in the Eurozone, less so for others. The funds are only released to the host after the guest has checked-in.  Holding the funds is another way airbnb makes their profit.  This way their commision towards hosts can be held on a very competitive level.  

[SauPing0]

I guess, so that sales being overseas with the lowest tax band. I think rather silly the government has not remove this loophole as the sales was make in HK and it is HK that is enjoying the activity.
However, thank you for advise.  It is funny airbnb says that it is nothing to do with them, but it is really them that is causing hidden charges to the airbnb.
I learnt my lesson.  

[Susan17]

@SauPing0 

Airbnb foreign transaction/cross border  fees, and questionable currency exchange rates, have been the subject of widespread confusion and speculation for a very long time. 

Here's a discussion going right back to 2016, with more recent comments mainly on the later pages. 

https://community.withairbnb.com/t5/Help/Avoiding-the-Foreign-Transaction-Fee/td-p/159310

A blog post on disabling dynamic currency conversion... 

https://danielpocock.com/disabling-dcc-on-airbnb

Business Insider article..

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

And Airbnb's own position...

https://www.airbnb.ie/help/article/95/can-i-pay-with-any-currency

[SauPing0]

Thank you, I read that article and it was not that clear. My case was everthing was in one country and yet airbnb managed to charge me extra via credit card for their benefit to maximise tax paying. 

I have learnt my lesson and weight this total cost via local hotels.