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.

[Ellie53]

My credit card currancy is HKD and the same card is on my Paypal account as well. Bank charges 1.95% Foreign Currency Conversion Fee, which is perfectly fine to me. But the rediclous 3% conversion fee/adjusted exchange rate (whatever you call it), THIS IS NOT FINE!!!

Last week I booked a listing in Norway by adding Paypal as new payment method, I was able to pay in NOK. Today I am trying to do the same, make a booking in NOK, but Airbnb is now forcing me to pay in HKD. Even when I switched to NOK, it shows,

"Total (NOK) 1684.26 kr 
You are paying in HKD. Your total charge is $1587.02 HKD. The adjusted exchange rate for booking this listing is $1.00 HKD to 1.0304 kr NOK."

What really pissed me off is, when I choose Billing Country as Norway (which was a little trick I used year ago), it shows,

"Total (USD) $203.20 
You are paying in HKD. Your total charge is $1587.02 HKD. The adjusted exchange rate for booking this listing is $1.00 HKD to 1.0304 kr NOK."

So now they are adding that conversion fee to whatever curriencies I choose. More than that, if I didn't read those fine print or do the calculations and went on to pay, I will have to pay the "conversion fee" twice, one to the bank and one to Airbnb. This is UNFAIR!!

Airbnb charges ADDITIONAL service fee from booking, at the same time they charges some fee from host, they SHOULD NOT charge Guest extra using this so called conversion fee. Payment currency should be the choice of Guests, not Airbnb's. If the company has to cover costs, raise the service fee. Please don't do it in sneaky way. 

[Jeff-And-Cheryl0]

@Ellie53

I agree.  I total rip off.  There is a class action lawsuit presnted in Quebec Canada against this "hidden fee"

Quebec Lawyer lawsuit:

http://montrealgazette.com/news/local-news/airbnb-fees-contravene-consumer-protection-act-quebec-law...

[Ellie53]

@Jeff-And-Cheryl0

Thanks for providing the news link.

I am trying to find out any EU consumer protection legislation is related to this matter. So far I could only find an action plan and consultation document. 

Consumer Financial Services Action Plan

CONSULTATION DOCUMENT Transparency and Fees in Cross-Border Transactions in the EU

What annoys me the most is that this platform is about the community all the hosts and guests made and built. Now they decided to rip off the people who helped built it. What an irony.

[Graeme26]

This is just plain extortion on the part of Airbnb to extract an additional 3% out of people by forcing terrible exchange rates on users when they're not booking in their home currency, and lets's be honest, if you're going on holiday, chances are it's not going to be in your home currency!  I love airbnb, but forcing of a conversion to your home currency using their extortionate FX rates leaves a very bad taste, and will make me think twice before using airbnb in future on principle.

[Stefan91]

You "love" aribnb? Seriously?? That's sad - unrequitted love is always sad.

Rest assured though that airbnb will happily screw you regardless.

[Carbo0]

This is clearly the hidden fee that Airbnb charges. They won't easily give up until everyone knows their tricks.

[Louise214]

Yes, the whole currency situation is unclear.  I have been given conflicting information from different staff.

Letting the traveller choose the currency they pay in would be beneficial.

And CLARITY is essential

[Jeff-And-Cheryl0]

Its a hidden fee to bolster profits - Canadian Class action lawsuit coming Airbnb's way.

Google:

Quebec airbnb lawsuit 

[David1777]

I'm glad to have come across this thread before i made our booking in Oz. My uk credit card charges no exchange rate fee and gets pretty good end of day exchange rates, so the 'go to' for my transaction abroad. 

An effective 8% surcharge from Airbnb on top of their lofty service fee renders it useless but luckily we have an Australian bank card to call upon.

I'm only an occasional Airbnb user but am amazed at the service chage level + the currency rip off + hosting fees.

Equally surprised that the EU competition authority has not become involved, when they dont appear afraid of taking on Google and Apple. Plus contrary to credit card T's&C's?

The original idea for Airbnb seems to have been consumed by commercial greed. An alternative platform is required, but currently most e mail searches lead back to Airbnb. 

if anyone has alternatives, particulaly in Oz and NZ, please let me know

[Jeff-And-Cheryl0]

  Not sure what you can do in the UK.  I know of people reported it in the US.  Looks like Canada has a class action starting against this hidden fee.  Both the guest and hosts should keep up the pressure on twitter and facebook ... they do read them.  Such a great platform but such a sneaky way to generate profits.  

Google:

Quebec Airbnb Lawsuit.

[Yuanxiao0]

In the US, your landlord can't ban you from the house just because you try to assert your legal rights.

It's crazy that Airbnb, as a rental company, threatens to ban people who pursue legal actions against them.

Even if the hidden fees are legal, this kind of retribution should in no way be legal.

[Jeff-And-Cheryl0]

Absolutely a rip off and hidden fee!  

[Emmanuel130]

I just reserved a room for the first time and was scared by this thread. I was in Europe traveling and trying to book a reservation back in the US (my home country, and where my bank is located). AirBnB was trying to charge me in Euros since I was logged in from Germany. I waited until I got back to the US to try and reserve, and the listings were still all in Euros. I decided to try and book anyway, and the very last page before I reserved (where you have to enter your credit card info), there was a little thing in the bottom right hand corner, just above the page footer, that let me change the currency I paid in. So, it looks like maybe they have addressed this problem, but just made it difficult for people to find out how to switch currencies?

[Jeff-And-Cheryl0]

@Emmanuel130

The header of the thread is confusing.  The community is talking about the 3% Conversion fee which is added to all reservations that are booked outside of where your credit card is iisued from.  So your credit card is issued from the US ( thus US dollars) and thus when you book any property outside of the US you will be hit with the hidden 3% fee.  I just checked my current Mexico stay and its still on my receipt.  Here it is on my receipt:

"Occupancy Taxes include Mexico City Lodging Tax (Mexico), VAT (Mexico).

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

A 3% conversion fee was applied to this booking"

Google Quebec airbnb lawsuit and you can see a class action suit.  It is confusing. You wont get hit with the 3% booking a US stay from anywhere in the world since your credit card home is USD's.

[Helen322]

J&C, may I suggest that you add the part about the Quebec airbnb lawsuit as a reply to the original post? This way it will reach the mailboxes of people who follow this conversation. Cheers