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.

[Andrew314]

I'm extremely annoyed by Airbnb's policy and system of forceful imposition of this fee. Either always charge in the local currency, or give me an option to choose: a. local currency, or b. Airbnb converted currency. What's so hard about this? If the gift shop owners, restaurants, and hotels offer this simple option, why can't you?

If you secretly need to charge more to cover costs of your technology platform, then add to the itemized Service Fee. Don't label it as a foreign currency conversion 3%. You're not a bank, so stay out of the business of dictating how I handle my money under the guise of convenience.

I tried all the suggestions I've read online to avoid this extortion but all have failed. Changing country in settings, in billing address country, and display currency all fail. Even PayPal, when listed in the drop-down list of payment options as PayPal (EUR), still ultimately get converted to USD, with the annoying 3% tacked on. By the way, beware that PayPal plays the same game too. But at least, they let you choose, as long as you find the menu. Direct link: Paypal Currency Conversion Options

Airbnb, your turn!

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Pasted from Paypal Currency Conversion Options 

PayPal offers two ways to convert currency when you purchase from a seller who uses a different currency than yours.

• The PayPal currency conversion process
• The MasterCard and Visa currency conversion process

Please select your option below:

Option A	Use PayPal's conversion process to complete my transaction using my card's currency. Both the original transaction currency and the converted amount that I will be charged are disclosed for my convenience. I understand that MasterCard and Visa have a currency conversion process. I have chosen not to use the MasterCard and Visa currency conversion process, and I will have no recourse against MasterCard and Visa with respect to any matter related to this conversion.
Option B	Bill me in the currency listed on the seller's invoice. I will not know which foreign exchange rate has been applied to this transaction until I receive my card statement from my card issuer. I acknowledge that by choosing this option, my card issuer will determine the foreign exchange rate to apply to this transaction, and that I will not be informed of the foreign exchange rate or any additional foreign exchange fees applied until I am billed by my card issuer.

Select an option above, then click Submit to complete the currency conversion process.

[Billie2]

I signed up for an Airbnb account yesterday. I reside in Canada and today I tried to book a unit in Banff, Canada. The listing is in CAD$. However when I "request to book" I noticed that they have converted the fee from CAD$ to Singapore $. The exchange rate is provided as 0.97:1.00 and I have to pay a conversion fee of 3%. My default credit card is issued by a Canadian bank and it is denominated in Canadian dollars. How on earth did Airbnb managed to charge me foreign currency exchange fee and conversion fee when I'm trying to book a unit within the same country I'm living in? The specialist who replied to my message was not able to provide an answer and said she will check but she did help me to book the unit over the phone in CAD$. 

[Yasue0]

Its a cash grab scam. aibnb cash rate today is au$.72 to us $1:00. my credit card no fees $.75 to us $1:00

[Srinivasan0]

I agree with the comments here. This is not fair to the customers using Airbnb. Any reservation that you make in a foreign country (other than your home location) 3% fee is charged. Also, the currency conversion rate is not at the market rate. Is there a way,  can we get a legal opinion on this act from Airbnb?

[Srinivasan0]

Hello All,

I sent an email to Airbnb with the following note. Hoping to get a clarification from Airbnb. Is there a way to contact the CEO's desk of Airbnb?

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Dear Airbnb Support Team,

I am  being charged 3% transaction fee on my reservations. I have the credit card that does not charge me any foreign transaction fee. Is there a way to avoid the 3% transaction fee?

I read the information available on the link below:

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

The following information is from the above link: 

"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."

As per the information above, 3% conversion fee is charged because of the following "Airbnb’s holding costs and foreign currency risks". How this will be true - Please explain.

Once my reservation is confirmed, my credit card is charged immediately. Airbnb can charge my credit card in the hosts country currency. For example, if I making a reservation in Europe and the charge can come in Euros. My credit card company will honor the charge in Euros, I do not understand the risk for Airbnb; since the charge appears on my credit card immediately once the reservation is confirmed.

Please clarify the reasoning behind the 3% fee.

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[Jeff-And-Cheryl0]

Yes.  We are being taken for 3% PLUS the poor conversion on top of it.

[Peggy-And-Mike0]

If everyone used Twitter and tweeted directly to @BChesky and @AirBnbHelp it will register at least through the social listening reporting.  Just keep at it. 

[Stephan45]

I agree, the currency conversion is a total rip off and not customer friendly at all. I have a USD credit card and just because I live in Switzerland Airbnb is converting my USD reservation to CHF with a 3% uplift. Makes totaly no sense unless they want to make an extra 3% of the transaction.

[Sam178]

This is a hidden fee for Airbnb, and without pressure, they have no incentive to change it.

Fair practice would be to give customers choice, however their policy is to force simply disgusting price gouging.

I live in the UK, and have a GBP denominated account. 

As a test, I have compared the effective exchange rate at the Airbnb checkout for an appartment in NYC to the feed from OANDA. 

Airbnb : £1 GBP = $1.2186 USD 

OANDA : £1 GBP = $1.2835 USD mid

That is a 6.5% difference.
Or in other words, a $65 fee on a typical $1000 booking in addition to stated fees.

OANDA is the price source stated in the Airbnb policy on exchange rates. They are charging 6.5% above the feed on their own source website.

This makes me feel furious about a company I used to enjoy using.

Airbnb, please give your customers choice.

[Jeff-And-Cheryl0]

Hi Sam,

You are correct - a hidden fee.  Lets not forget the other hiddden/rip off 3% fee when you book outside of where you credit card was issued.  

You can see airbnb explanation below.  So book a stay today in Spain for two days from now and their is holding costs and risk ..... Really?  Combine that with the unfair exchange rate you discussed that most credit cars handle and its almost fraud.  If they want more money just raise the 6-12% service charge that guests pay - dont play games with your customers.  I have booked tens of thousdands of US dollars in stay in the last year - Rip off in my opinion.

Airbnb Customer Experience

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. Here is further information on the matter. https://www.airbnb.com/help/article/95/can-i-pay-with-any-currency Thanks so much and sorry if you're displeased with the fees Airbnb applies to particular reservations, Rob

[Anthony193]

I also noticed the 2.5% conversion fee from Euro to USD before booking my trip. Given that I have a credit card without any foreign transaction fees, I would strongly perfer to purchase my trip in Euros to avoid this unnecessary and unreasonable fee. I was planning on booking ~$1,000 of stays in Europe over a 3-week period. So, I'm stuck with $25 in conversion fees just for this one vacation. Airbnb must be making a true fortune on these fees that probably remain hidden to the average user. Do I have to now view Airbnb the same way that I view large financial organizations (and trust me that is not a very favorable view)?

[Matt165]

Of course they can overcome this issue.  Any statement of "the systems are automated" are pure BS.  If you make your own systems unable to provide this service, of course you can claim "Computer says no".  It clearly could say yes in the past.

Yet another person who can't really see how AirBnB can justify this fee based on their own explanation.  It's like airlines charging a booking fee per ticket, when it costs literally no more money or effort to process 1 ticket or 15 tickets per transaction.

[Miko1]

There's no way they will waive the fee - it makes them way too much money. There's no justification for that fee - they do it because they can. All the reasons they giveare pure BS - they are just to keep up the facade of concern. What else are you going to do? Use Flipkey? Thought so...

Also, in a way, it's discriminatory - I have access to credit cards in 5 different currencies, that saves me a lot of money. An average traveler only has credit card(s) in one currency - there's no way around it for them. A tax on the poor.

Plus, you're fooling yourself if you think you'll only pay 25$ conversion on top of a grand on accommodation. Check the threads, try it yourself - on a 1000$ accommodation, depending on a country you'll end up paying almost a 100$ extra.

Plus, complaining about payments will get you banned for life was an especially nice touch.

[Jeff-And-Cheryl0]

@Miko1

Are people really getting banned for voicing an opinion on hidden fees like the 3% conversion fee? Im sure consumer advocates would love to know that.

[Miko1]

Here's an official reply from AirBnb on the topic to one of the users who was more adamant about the subject.

"Please also note that disputing an Airbnb payment is a violation of Airbnb's Terms of Service in which may cause your account and any future accounts disabled."

Now tell me this doesn't sound like a threat.

Also, for the few naivists who still believe "We (i.e. AirBnb) took it upon ourselves to do this for our users as a courtesy, not so that we can inconvenience any users," I have this thought exercise. Virtually all sites where you pay using your credit card, you can pay without any regard to what currency your card uses as primary. So, finding out what your CC primary currency is takes EXTRA work and specific intent. AirBnb didn't mind doing it. Again, don't take my word for it - use a CC you haven't used before and try claiming it's denominated in whatever local currency you try to pay in. You will get a nice little dialogue saying (from memory) "Your credit card is denominated in USD. You will be charged in USD". The cherry on that pile of turd is that the dialogue box only has one button on it - "Okay".