On my last VISA statement the Intercontinenal de la Ville in Rome charged me for one nights stay. My reservation isn't until end of June.. but some hotels charge a one night deposit- so I'm ok with that- sort of. What's bumming me is the conversion Euros to dollars. The room is 329 Euros... and they used a multiplier of 1.299% ...in dollars $428!!! My bank is also charging a currency conversion fee. I know the dollar has declined..but I thought more like 20% vs 29%. Is the hotel ripping me off and charging their own premium over the exchange rate?
Kurt47, I think the hotel charges you in Euro and your bank does the conversion. I recently paid the balance of 841 Euro on a week's rental and the receipt which the rental agency mailed was in Euro. It appeared on my Visa as $1055 and I expect, at the end of the billing statement, to see the conversion fee as well! The exchange rate you mentioned seems about right considering some fluctuations in the past month.
Posts: 130 | Location: Virginia Beach. Va USA | Registered: 02 August 2002
The "official rate" today is about $1.22 to 1 Euro...but you can't really hope to get that rate even in the best of worlds. If you could, the Euro equivalent would be
Your credit card adds 1% for all foreign exchange transactions and now your bank may add 2-3% on top of it--just because they can. So if the rate that was used to convert was $1.26 US to Euro 1 and your bank and credit card added 3%, the math comes out to a charge of $427.00 for your deposit.
This is just a hypothetical calculation..the actual rates may be different--but it all adds up.
There are some banks that don't add the additional foreign currency surcharge...here is a list of some who do and some who don't.
Here's a look at what major issuers charge for credit card purchases in foreign currencies. Cash advances are a different animal, so consumers should check with their issuer about the cost of those. Discover isn't listed because the card is for domestic use only.
Citibank -- 3 percent BankOne/First USA -- 3 percent MBNA -- no surcharge Chase Manhattan -- 3 percent American Express -- 2 percent Bank of America -- 3 percent Providian -- 3 percent Capital One -- no surcharge Fleet Financial -- no surcharge Wells Fargo -- no surcharge
Here's a case where the crappy exchange worked to my friend's advantage. We were there in November and she purchased a leather jacket in Florence. At the time the rate was about 1.17. When they finally credited the Vat to her charge card, the rate was about 1.22 - so she came out a bit ahead
Regarding MBNA Mastercard - I've had this card for 17 yrs now and it's been great. I had planned to use this card the most when we went to Paris last year because of it did not have any surcharge to use it. It might have been just a fluke- however- when Galeries Lafayette and some restaurants that we went to tried to ring up the transactions, they've had difficulty. I witnessed it myself when the waiter or the salesperson tried several times to obtain the transaction# from the US, it failed. Could it have been due to the time difference? I don't know. I was rather disappointed that the card that had no surcharge didn't work for me. Needless to say, I used my AMEX and it went through without any problems... plus 3% of course. So, tip is: carry one additional card just in case.
Posts: 3 | Location: scottsdale, az | Registered: 07 July 2003
We also had a problem with charges to our credit card from Italy - in our case it was Visa. Payment for our rental villa would not go through and the owner didn't take AmEx! What we discovered is that some of the Italian 'partner' banks have an upper limit to the amount you can charge in any transaction - this is the case with CIBC Visa. The simple solution is to split the total into two transactions. Easy once you figure it out, but it caused us a few frantic moments at the time!
Sheena
Posts: 2263 | Location: West Vancouver, B.C. Canada | Registered: 28 February 2004
I'm really confused here bcz I've never seen a surcharge on my AmEx charges in Italy, as of last May. I've got a plain Green card, which I use bcz of the miles. I compare it (on Quicken)with the conversion I get through ATM machines (Fleet card) and the rate is essentially identical. I also have a Platinum MBNA card, which I almost never use. But maybe I should.
[QUOTE]Originally posted by Marian: I'm really confused here bcz I've never seen a surcharge on my AmEx charges in Italy, as of last May. QUOTE]
The bank or credit card company doesn't show you the surcharge as a separate item on your bill...it's in the converted rate they charge as far as how it's shown.
I understand that Sally. My point is that when I calculate the exchange rate, it's the same as I get at an ATM with my Fleet card. So it seems like a good deal to me. But who knows?
[QUOTE]Originally posted by Marian: I understand that Sally. My point is that when I calculate the exchange rate, it's the same as I get at an ATM with my Fleet card. QUOTE]
I'd bet that is because the ATM card has a surcharge on it, too. The bank is making something on it.
Maybe so. As I am an aged person , my card is free of charges in the US, and I've rarely seen a charge abroad, but who knows. The only time I did note a surcharge is with a particular ATM in Florence, near Via Ghibellina --- both times I used it. Will have to figure this one out tomorrow. Or maybe next week....
I think it is strange they already charged you for the room instead of using the card to hold the room. The dollar was at 1,29, now at 1,22.. but probably when you get here will be even better! say they go to refund you the Euro.. it will be at the current rate... not at what you paid for it! I would question that they already charged you!
[QUOTE]Originally posted by Diva: I think it is strange they already charged you for the room instead of using the card to hold the room.]
While most hotels in Italy will hold on a credit card, there are certainly those that do a deposit in advance...it's not unusual and just depends on the hotel policy.
Kurt - on Feb.18th the rate was $1.2837=1 euro, so your charge depended on when it was sent through. Today's rate is $1.2223=1 euro. Expect more flucuation over the next few months.
As far as those of you having difficulty with a credit card - it is quite common. The problem is with your credit card company, not any banks here. We see this happen all the time with our guests. Before you leave the USA, telephone your credit card company and tell them you are going to Italy and how long you will be there. MAKE SURE they make a notation on your record, or you will have a very good chance of getting your card declined here. It is usually not on the first 2-3 charges you make here, but after that. If you experience the problem, talk with the merchant, hotel, etc and ask to telephone the number on the back of your card - the credit card company should straighten it out on the spot for you.
Banks, credit card companies, etc are ALL in the business to make money - it's that simple. They all charge you to change your money, be it at the ATM, addtitional hidden fees on your creidt cards when making overseas transactions, etc.
On more than one occassion, we have tested our theory on all this. First going to our local bank - who gives us about 1/2 percent over the official exchange rate, then immediately using our ATM card, and again our credit card - then comparing. The ATM and credit card sometimes can be 3%+ higher.
You ATM and credit cards are still the best way of going as a tourist here - far better than the street money changers. Fees are just a cost of doing business - you'll still have a great time.
We have only seen one scam happen one time, but worth noting. We were checking out of a very nice London hotel - contrary to poplular belief, there are scams in other countries, too. The desk clerk gave us our credit card slip to sign and we noticed the charge was in US dollars, not British pounds. They had been "so kind" as to go ahead and use the hotel converison, so that we would have not problem when we returned home. NO WAY - we told them, we will pay in local currency on our credit card purchase.
Thanks Bill and Patty... and everyone for the currency exchange rate lesson. Living in the SF Bay area I'm used to a high cost of living. But something tells me I ain't see nothing yet. Italy will be an eye opener. But I'm sure we'll have a good time.
Today I went to the local American Express to get $100 worth of Euros. I almost fell over when she told me the conversion rate--$1.38. And on top of that absurd rate, another $5 was added on as a service charge.
So I told her to give me $50 worth of Euros instead...Talk about highway robbery!
“Open my heart and you will see, Graved inside of it, Italy.” -- Robert Browning
Posts: 416 | Location: Suburban New York | Registered: 21 January 2003
quote: something tells me I ain't see nothing yet. Italy will be an eye opener.
If the cost of living in Italy was as high as the SF area, we would not be able to afford to live here. On the contrary, you will probably be pleasantly surprised.
I just saw the charge posted on my AmEx account for a concert ticket that was 18.10 Euros -- the rate was $1.26 = 1 Euro, on March 17. About a month before, the rate was $1.31 = 1 Euro for a museum reservation.
Posts: 6926 | Location: Montclair, NJ, USA | Registered: 16 March 2003
Marian - the official exchange rate on March 17 was 1 euro = $1.2261 - on the 18th it was $1.2235. You can see that the credit cards do not give you the actual rate - they do make money on each and every transaction.
So many people seem to make a big deal about getting the "official" rate. If one spends $5000 while they are here, the difference is about $125 - about 2.5% seems to be the norm. The main point to always remember is to avoid the money changing booths - while many times the posted rate appears good - their fees are ridiculous. Use the ATMs.
Topic Closed
, my card is free of charges in the US, and I've rarely seen a charge abroad, but who knows. The only time I did note a surcharge is with a particular ATM in Florence, near Via Ghibellina --- both times I used it. Will have to figure this one out tomorrow. Or maybe next week....