Cathay Pacific Asia Miles - Cathay Pacific USA internet booking triggered foreign transaction fee

I recently booked a one-way ticket from LAX to BLR via HKG on Cathay Pacific's USA website. On my statement, I noticed I have been charged 3% foreign transaction fee. It came around $31 since ticket was little more than $1k.
I had used Citi Amex AAdvantage card which is issued by Citi bank USA. This is my 4th trip in 4 years on CX. I was never charged a foreign transaction fee on CX before.

First of all, my statement clearly states Cathay Pacific Los Angeles. I have been calling back to back Citi customer service and Cathay Pacific Internet booking support. While Citi claims Cathay Pacific has run the transaction from Hong Kong, Cathay Pacific denies that and states that booking was made from Los Angeles in USD. Basically, both of them are giving me a run around and neither of them is ready to fix. I'm not sure who is at fault.

BTW, I noticed that Cathay Pacific's website states that all internet bookings are approved from their HQ (Hong Kong). May be their transaction really went through Hong Kong bank.

Since it's not a big amount I'm going to give up. But I will avoid using Cathay Pacific's Internet booking and Citi card on airline tickets in the future.

Billed from CX in Lantau. Did you get a line detail like this from Citi?

xx/06/2012 CATHAY PACIFIC TICKETING HONG KONG HK HKD 712.41 DR USD 90.00 DR

(This is my MPO redemption list clearing fee, which I must pay in USD despite being a HK-based MPO member with a HKD credit card. When I paid with my CX HK Amex, it used to even say Lantau HK (http://www.flyertalk.com/forum/cathay-pacific-asia-miles/910542-best-credit-card-coversion-rate-asiamiles-2009-fters-based-hk-15.html#22) specifically).

Assuming this is what CX did to you (at the backend at least), yes the foreign transaction fee will apply.

CX's being a skinflint in terms of cost but also perhaps trying to avoid compliance issues with offshore USD processing. And Citi's trying to claw back the miles by whatever underhanded way they have (how do you know a US$ transaction wlil be processed onshore or offshore?). With our cards here, we have foreign transaction fees for Mastercard but not Visa or Amex. Using MC to pay for HK$ overseas only incurs 0.95%, but we get out of it by using Visa which is foreign transaction-fee free.
Not much you can do about it except use a card with no foreign transaction fee next time.

Chase's Sapphire Preferred Visa gives double miles for travel (i.e. air tickets) and has no foreign transaction fees. Ime they also have vastly superior CS support. [This unsolicited advice comes from a longtime Citigold customer for whom Citi AAdvantage cards have been free from annual fees, but still only uses the cards when flying on AA....]

Billed from CX in Lantau. Did you get a line detail like this from Citi?

That's the worst part. Citi did not provide me the details of the charge. They didn't even mention if they charged in HKD. I'm suspecting Citi is just trying to make some quick buck by giving a lame reason that Cathay is headquartered outside of US.

That's the worst part. Citi did not provide me the details of the charge. They didn't even mention if they charged in HKD. I'm suspecting Citi is just trying to make some quick buck by giving a lame reason that Cathay is headquartered outside of US.

Assuming there's not remark stating the charges will be in HKD, can you dispute the purchase? CX quotes the charge in USD for you and that's the amount you agreed to pay for. But instead they charged you in HKD without informing you.

Just my 2 cents, but frequently on any site connected to a foreign anything, the USD amount is just a display overlaid with a transparent conversion. The actual charge is done in foreign $$ and you just can't see it. This includes anything they say is charged in $USD.

Just my 2 cents, but frequently on any site connected to a foreign anything, the USD amount is just a display overlaid with a transparent conversion. The actual charge is done in foreign $$ and you just can't see it. This includes anything they say is charged in $USD.

This is not Dynamic Currency Conversion if that's what you're referring to: http://www.flyertalk.com/forum/china/1146772-using-credit-cards-china-great-cc-rip-off-dynamic-currency-conversion.html

Happens in Hong Kong but will not happen to an Amex card - Amex doesn't allow DCC transactions on its cards (only Visa/MC).

Assuming there's not remark stating the charges will be in HKD, can you dispute the purchase? CX quotes the charge in USD for you and that's the amount you agreed to pay for. But instead they charged you in HKD without informing you.

This is probably not done in HKD.

OP is subject to the charge because CX charged him USD in HK (foreign transaction charge)

Not because CX charged him HKD in either HK or the US (foreign currency transaction charge)

This is probably not done in HKD.

OP is subject to the charge because CX charged him USD in HK (foreign transaction charge)

Not because CX charged him HKD in either HK or the US (foreign currency transaction charge)

ah...got you

This is probably not done in HKD.

OP is subject to the charge because CX charged him USD in HK (foreign transaction charge)

Not because CX charged him HKD in either HK or the US (foreign currency transaction charge)

Makes sense. However, customer will have no clue about this while purchasing ticket through CX's site. If it were in foreign currency you would know upfront that there will be a transaction fee unless CC waives that.

Worst part is, CX internet support kept denying the fact that ticket was approved/purchased in HKG. She even suggested me to talk to the bank manager to get the fee waived :)

Makes sense. However, customer will have no clue about this while purchasing ticket through CX's site. If it were in foreign currency you would know upfront that there will be a transaction fee unless CC waives that.

Worst part is, CX internet support kept denying the fact that ticket was approved/purchased in HKG. She even suggested me to talk to the bank manager to get the fee waived :)

Get a receipt for the transaction http://www.cathaypacific.com/cpa/en_US/faq/ticketpurchase/pay ? Does that help show who billed?

Makes sense. However, customer will have no clue about this while purchasing ticket through CX's site. If it were in foreign currency you would know upfront that there will be a transaction fee unless CC waives that.

Worst part is, CX internet support kept denying the fact that ticket was approved/purchased in HKG. She even suggested me to talk to the bank manager to get the fee waived :)

it seems complete crap for me that you'd have to pay an extra $30 which you aren't supposed to pay

it seems complete crap for me that you'd have to pay an extra $30 which you aren't supposed to pay

Just checked my line entry for VS ticket bought online:

xx/08/2012 xx/08/2012 VIR ATLxxxxxx2671 VIRATL.COM HKHK HKD 9,3xx.00

For a ticketing transaction, it's processed locally
(Even tho VFC fees gets processed in the UK)

Shame on CX not to have local processing
(But then again easier to open and maintain an account in HK than the US)

http://www.washingtonpost.com/wp-dyn/content/article/2005/07/29/AR2005072900927_2.html

Oops. No way did the credit card companies want to lose out on their hefty fees. Visa International took in $424 million in currency exchange fees for the fiscal year that ended September 2004, according to Robertson of the Nilson Report. That's nearly 30 percent of its annual revenue, he said.

This past April, Visa began adding a 1 percent fee onto any foreign transaction, whether dynamically converted to dollars or charged in local currency. But then in June, it suddenly rescinded the move, and went back to the previous policy of charging a 1 percent fee only on transactions made in foreign currency. In a statement, Visa said it made the change to "address issues raised by cardholders, merchants, and member financial institutions." In other words, almost everybody was upset. The company is "now reviewing the fee structure related to single-currency cross-border transactions," according to Rhonda Bentz, Visa's vice president of public affairs.

MasterCard currently charges 1 percent on foreign currency transactions only, but has announced that, in October, it will switch to charging 0.8 percent for all foreign transactions, with an additional 0.2 percent fee for transactions made in foreign currency.

Hefty Penalties

Whether you get socked with these fees -- and more -- all depends on the bank that issues your credit card. Some issuing banks, such as MBNA [and Citi, in this case], are charging fees on any foreign transaction, regardless of whether you pay in dollars or local currency. According to MBNA spokesman Jim Donahue, the company levies a flat 3 percent fee on every foreign transaction; in the case of a charge made in foreign currency, MBNA absorbs Visa's 1 percent currency conversion fee.

Same with MH on Citibank US card:

http://www.credit.com/blog/2009/04/fee-alert-watch-out-for-the-new-foreign-transaction-fees/

Other merchants do it, such as
- Paypal US (charge in HK) http://www.fatwallet.com/forums/finance/1067272/ ; and
- Paypal HK (charge in SG) http://www.hongkongcard.com/forum/forum_show.php?id=5987

I'm sure Visa, MC and Amex incur fees for settling USD amounts outside US, repatriating or remitting USD to make up differences.

But only MC passes it on.

Interchange is not directly affected by the country of the cardholder. I understand it has more to do with the country of the merchant - the issuer gets the merchant's home interchange rate, which may be higher or lower than the US.

I see little justification for the fee.
But as noted in fatwallet it's not something you can chargeback against.

I'd use cards with known foreign transaction fees sparingly for foreign-based merchants, in case they pull something like merchant country processing (even if the amount in cardholder currency is correct) to save costs.

It has a lot of possibilities that I don't even bother to discuss.

My simple suggestion - can you "KINDLY" ask Citi to waive the fee as a one-time courtesy?

And next time - please use something else.

Assuming there's not remark stating the charges will be in HKD, can you dispute the purchase? CX quotes the charge in USD for you and that's the amount you agreed to pay for. But instead they charged you in HKD without informing you.

A fee can't be disputed, as it was assessed by Citi, not CX.

It has a lot of possibilities that I don't even bother to discuss.

My simple suggestion - can you "KINDLY" ask Citi to waive the fee as a one-time courtesy?

And next time - please use something else.



A fee can't be disputed, as it was assessed by Citi, not CX.

I was talking about disputing the entire transaction if they charged OP in HKD instead of the USD quoted

My simple suggestion - can you "KINDLY" ask Citi to waive the fee as a one-time courtesy?

And next time - please use something else.

Agree

http://www.credit.com/blog/2009/04/fee-alert-watch-out-for-the-new-foreign-transaction-fees/

I had a similar experience. 3% foreign transaction fee on my USD purchase on britishairways.com. I called Citibank first and they asked me to talk to the airline. I talked to the airline – they say it is the bank that charges it and they have nothing to do with it. When I found this post, I called Citibank again and was told that they can’t do anything about. I talked to the supervisor who was trying to talk me into accepting the charge. I gave them 2 options – either waive the fee or close the account. The supervisor talked to her manager and they waived the fee as a one time exception.

Don't use that Citi card unless you're absolutely sure the merchant and all payment intermediaries are USA-based.

I was talking about disputing the entire transaction if they charged OP in HKD instead of the USD quoted

Asking a fee waiver will be way much easier.

It is not the first time that Citi is doing this (I got hit once by using Paypal).

Agree

http://www.credit.com/blog/2009/04/fee-alert-watch-out-for-the-new-foreign-transaction-fees/



Don't use that Citi card unless you're absolutely sure the merchant and all payment intermediaries are USA-based.

Who exactly passes on the charge? Is it Citi or Amex? The reason I'm asking is, I have purchased another ticket for my wife on BA.com using my Amex Biz Gold (issued by Amex USA). Statement has not been printed yet. So, I can't say for sure whether there will be a charge or not. I don't think it will show up in online transactions either. Have to wait another 10 days to receive the monthly statement.

P.S. I'm very glad that I posted this topic here. Learnt a lot about charges for foreign transactions involving airlines. I will make sure to get a CC like Chase Sapphire preferred for foreign transactions. Still waiting for it to go 50K bonus points :)

Who exactly passes on the charge? Is it Citi or Amex? The reason I'm asking is, I have purchased another ticket for my wife on BA.com using my Amex Biz Gold (issued by Amex USA). Statement has not been printed yet. So, I can't say for sure whether there will be a charge or not. I don't think it will show up in online transactions either. Have to wait another 10 days to receive the monthly statement.

P.S. I'm very glad that I posted this topic here. Learnt a lot about charges for foreign transactions involving airlines. I will make sure to get a CC like Chase Sapphire preferred for foreign transactions. Still waiting for it to go 50K bonus points :)

I believe Amex as a card association does not impose foreign transaction fee. Only the card issuer does.

Every card association charges slightly differently in each country
(e.g. in HK only MC imposes an 0.8% charge http://www.hongkongcard.com/forum/forum_show.php?id=5987
in AU, both Visa and MC does this http://www.nab.com.au/wps/wcm/connect/nab/nab/home/Personal_Finance/15/8/#sect3c)
But in both HK and AU, Amex (as a card association) does not impose charge.

I'm not sure about the US
But from the limited fee tables I can see
https://secure.cmax.americanexpress.com/Internet/UDAP/CardMemberAgreementsOnline/US_en/CMADetailsPage/PersonalCards/BluefromAmericanExpress/BlueAECB.pdf
https://secure.cmax.americanexpress.com/Internet/US/Corporate/AtWork/Files/Forms/CorpCard_Cardmember_Agreement.pdf
I don't see Amex imposing foreign transaction fee for US cards
Only individual banks apply it as a bank-imposed fee

Edit 2 Sep: Amex does assess 2.7% fee on it's own cards for foreign transactions (whether currency conversion occurred or not) save for corporate and personal Platinum and Centurion.

Who exactly passes on the charge? Is it Citi or Amex? The reason I'm asking is, I have purchased another ticket for my wife on BA.com using my Amex Biz Gold (issued by Amex USA). Statement has not been printed yet. So, I can't say for sure whether there will be a charge or not. I don't think it will show up in online transactions either. Have to wait another 10 days to receive the monthly statement.

The card issuer is the one impose the fee, so in your case:

CX > Citi

BA > AMEX (If any)

By the way - the card associations which the card is issued under (like Visa, MC, AMEX, etc.) does get some portion of foreign transaction fee you pay to your issuer.

how do you know a US$ transaction wlil be processed onshore or offshore?).

The customer does not know. Even an US-based airline would have processed transactions in overseas center. DL has done that - for certain flights, like flights originated from Europe, even purchased on DL website for a DL flight, billed in USD, got charged the foreign transaction fee. The customer in this scenario has eventually successfully gotten the fee reversed at the end - largely because this is billed by DL which is a US-based airline. (the transaction was processed in Ireland if my memory was correct.)

The foreign transaction fee is not based on currency used, but where the transaction is processed. There is no other way to get around it but find yourself a 0% forex fee card for such transaction.

I'm not sure about the US
But from the limited fee tables I can see
https://secure.cmax.americanexpress.com/Internet/UDAP/CardMemberAgreementsOnline/US_en/CMADetailsPage/PersonalCards/BluefromAmericanExpress/BlueAECB.pdf
https://secure.cmax.americanexpress.com/Internet/US/Corporate/AtWork/Files/Forms/CorpCard_Cardmember_Agreement.pdf
I don't see Amex imposing foreign transaction fee for US cards
Only individual banks apply it as a bank-imposed fee

AMEX DEFINITELY imposes forex fee on most of its cards except the PLAT card but while it has 0 forex fee, the rate AMEX uses to translate the value is notoriously BAD. The forex fee when charged, is 2.7% versus the 3% standard for MC / Visa.

Chase has MANY affinity cards and its own house cards now are 0% forex fee. All hotel cards, BA, and a version of UA card are 0% forex fee, so as Sapphire Preferred.

Citi's Premier and Prestige cards have 0% forex fee.

And of course the old standby of Capital One, plus some minor issuers.

There is no reason why a US consumer does not get AT LEAST one to two cards that does not charge forex. Our household has 8 such cards!

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I'm not sure about the US
But from the limited fee tables I can see
https://secure.cmax.americanexpress.com/Internet/UDAP/CardMemberAgreementsOnline/US_en/CMADetailsPage/PersonalCards/BluefromAmericanExpress/BlueAECB.pdf
https://secure.cmax.americanexpress.com/Internet/US/Corporate/AtWork/Files/Forms/CorpCard_Cardmember_Agreement.pdf
I don't see Amex imposing foreign transaction fee for US cards
Only individual banks apply it as a bank-imposed fee

AMEX DEFINITELY imposes forex fee on most of its cards except the PLAT card but while it has 0 forex fee, the rate AMEX uses to translate the value is notoriously BAD. The forex fee when charged, is 2.7% versus the 3% standard for MC / Visa.

Chase has MANY affinity cards and its own house cards now are 0% forex fee. All hotel cards, BA, and a version of UA card are 0% forex fee, so as Sapphire Preferred.

Citi's Premier and Prestige cards have 0% forex fee.

And of course the old standby of Capital One, plus some minor issuers.

There is no reason why a US consumer does not get AT LEAST one to two cards that does not charge forex. Our household has 8 such cards!

Forex = foreign exchange?

What about foreign transaction on Amex own cards below plat?

The customer does not know. Even an US-based airline would have processed transactions in overseas center. DL has done that - for certain flights, like flights originated from Europe, even purchased on DL website for a DL flight, billed in USD, got charged the foreign transaction fee.

This is kind of messed up. It would be awesome if FT can set up some sort of database about who in what situations would charge forex so that we can look up before deciding on which card to use.

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Forex = foreign exchange?

What about foreign transaction on Amex own cards below plat?

Yes, a common short form for foreign transaction fee.

AMEX charges forex fee on all its cards below PLAT.

This is kind of messed up. It would be awesome if FT can set up some sort of database about who in what situations would charge forex so that we can look up before deciding on which card to use.

There is a LONG RUNNING thread in the Credit Card forum. Have you not know such forum exists? :)

It is even a STICKY!

http://www.flyertalk.com/forum/credit-card-programs/1250450-usa-cards-no-foreign-transaction-fees.html

Happy - just want to point out us non-US FTers do not commonly associate "forex" with foreign transactions where *no* currency exchange has taken place.

In HK, we do have foreign transaction fees, if the card network is MasterCard. This is assessed at 0.8%. This has most commonly been assessed on HKD transaction on HKD Mastercards processed by Paypal out of Singapore. Foreign currency transaction (that is, with exchange of currency) is assessed at approx 1.95% for Visa and MC and 2% for AE.

In Aus, foreign transaction and foreign currency is generally assessed at 3% tho some banks charge differently for foreign transaction and foreign currency e.g. National Australia Bank charges the former at 2.3% and the latter 2.5%.

I understand in the US that foreign currency are assessed at the same fee as foreign transaction so both fees are being referred to as foreign transaction now

http://www.creditcards.com/credit-card-news/foreign-exchange-fees-going-up-1267.php
http://creditcardforum.com/blog/american-express-foreign-transaction-fee/

I appreciate current US practice but please appreciate using "forex" to refer to foreign transaction fee without conversion (exchange) is likely to cause confusion to a non-Us reader. Just my $0.02

I'm not sure about the US
But from the limited fee tables I can see
https://secure.cmax.americanexpress.com/Internet/UDAP/CardMemberAgreementsOnline/US_en/CMADetailsPage/PersonalCards/BluefromAmericanExpress/BlueAECB.pdf
https://secure.cmax.americanexpress.com/Internet/US/Corporate/AtWork/Files/Forms/CorpCard_Cardmember_Agreement.pdf
I don't see Amex imposing foreign transaction fee for US cards
Only individual banks apply it as a bank-imposed fee

Edit 2 Sep: Amex does assess 2.7% fee on it's own cards for foreign transactions (whether currency conversion occurred or not) save for corporate and personal Platinum and Centurion.

Although I disagree with the terminology I admit to being mistaken about Amex's fees on its own cards. Yes OP may get hit by foreign transaction fees on BA purchase even if denominated on USD - apologies.

In fact, it has happened to other FTers before: http://www.flyertalk.com/forum/american-express-membership-rewards/1235705-delta-amex-charging-foreign-transaction-fees-tickets-originating-abroad.html#7

There is a LONG RUNNING thread in the Credit Card forum. Have you not know such forum exists? :)

It is even a STICKY!

http://www.flyertalk.com/forum/credit-card-programs/1250450-usa-cards-no-foreign-transaction-fees.html

sorry I wasn't clear. I am thinking more in terms of the vendor side, i.e. which airlines, hotels, online travel agents, etc. would charge you forex (at least for US people) under what situations (e.g. flights originate from outside of US) instead of which credit cards have no forex fees.

sorry I wasn't clear. I am thinking more in terms of the vendor side, i.e. which airlines, hotels, online travel agents, etc. would charge you forex (at least for US people) under what situations (e.g. flights originate from outside of US) instead of which credit cards have no forex fees.

There is no way to know because the charge stemmed from where the transaction is processed. How anyone would know where a company processed its transaction until after the fact?

My neighbor purchased a pair of tickets from JetBlue for a trip that JetBlue MIA-JFK, then EI JFK-DUB-VIE. All marketed and sold by JetBlue, yet she was hit by 3% fores fee because EI processed the portion of tickets from its office.
She even has a C1 card to use for boot, but she uses her discover card or citi card I forgot which, but a 3% card.

Like I said before, the ONLY way to avoid this is to use the 0% forex card when in doubt.

Common themes seem to be US-based airlines for flights originating from outside US, in the case of DL. But I never read about AA has billing outside US for purchases made on AA site, for example. Hotels are really simple - the billing currency would readily tell you where the transaction is processed. OTA it depends. Expedia/Travelocity/Orbitz/Priceline/Booking.com should be no forex if going thru their US sites. Going thru their international sites, of course you are charged. Sometimes you would have to go thru the international sites to get the deals, be it a Expedia coupon or a particular mistake fare... Then you should know better that it would be 3% forex fee. Or if you book hotels from Wotif, Venere, Asia Room etc chances are they process their transactions outside US because they are foreign companies. There are literally hundreds if not thousands of travel providers out there that one may book service from.

Bottom line, it is simply an impossible task to assemble such a data base. Besides, it is really COMMON SENSE which would really be 95% correct in most cases.

There is no way to know because the charge stemmed from where the transaction is processed. How anyone would know where a company processed its transaction until after the fact?

My neighbor purchased a pair of tickets from JetBlue for a trip that JetBlue MIA-JFK, then EI JFK-DUB-VIE. All marketed and sold by JetBlue, yet she was hit by 3% fores fee because EI processed the portion of tickets from its office.
She even has a C1 card to use for boot, but she uses her discover card or citi card I forgot which, but a 3% card.

Like I said before, the ONLY way to avoid this is to use the 0% forex card when in doubt.

Common themes seem to be US-based airlines for flights originating from outside US, in the case of DL. But I never read about AA has billing outside US for purchases made on AA site, for example. Hotels are really simple - the billing currency would readily tell you where the transaction is processed. OTA it depends. Expedia/Travelocity/Orbitz/Priceline/Booking.com should be no forex if going thru their US sites. Going thru their international sites, of course you are charged. Sometimes you would have to go thru the international sites to get the deals, be it a Expedia coupon or a particular mistake fare... Then you should know better that it would be 3% forex fee. Or if you book hotels from Wotif, Venere, Asia Room etc chances are they process their transactions outside US because they are foreign companies. There are literally hundreds if not thousands of travel providers out there that one may book service from.

Bottom line, it is simply an impossible task to assemble such a data base. Besides, it is really COMMON SENSE which would really be 95% correct in most cases.

hmm... I guess there is no simple solution, but thanks for the help response!

Common themes seem to be US-based airlines for flights originating from outside US, in the case of DL. But I never read about AA has billing outside US for purchases made on AA site, for example. Hotels are really simple - the billing currency would readily tell you where the transaction is processed. OTA it depends. Expedia/Travelocity/Orbitz/Priceline/Booking.com should be no forex if going thru their US sites. Going thru their international sites, of course you are charged. Sometimes you would have to go thru the international sites to get the deals, be it a Expedia coupon or a particular mistake fare... Then you should know better that it would be 3% forex fee. Or if you book hotels from Wotif, Venere, Asia Room etc chances are they process their transactions outside US because they are foreign companies. There are literally hundreds if not thousands of travel providers out there that one may book service from.

Thanks Happy. Can I suggest these "rules" of thumb:

In person purchase at card terminal: No foreign transaction fee
US local internet businesses: No foreign transaction fee
US airline on flights wholly in US: No foreign transaction fee (hopefully)
US hotel billing in USD: No foreign transaction fee (I won't be 100% sure about a foreign chain such as Accor billing in USD)
US online travel agent such as Expedia/Travelocity/Orbitz/Priceline/Booking.com billing in USD on US site: No foreign transaction fee
Paypal to US merchant: No foreign transaction fee
Non-US online travel agent: Foreign transaction fee may be applicable
Non-US airline: Foreign transaction fee may be applicable
Paypal to foreign merchant: Foreign transaction fee may be applicable

It does seem a foreign transaction fee-free card is needed for the last three categories of transactions. No USD miles earn can justify 3% in additional fees.

Although I disagree with the terminology I admit to being mistaken about Amex's fees on its own cards. Yes OP may get hit by foreign transaction fees on BA purchase even if denominated on USD - apologies.

In fact, it has happened to other FTers before: http://www.flyertalk.com/forum/american-express-membership-rewards/1235705-delta-amex-charging-foreign-transaction-fees-tickets-originating-abroad.html#7

Just want to provide an update that I was not charged any foreign transaction fee on my Amex Gold Biz card for the tickets I purchased on BA.com. The reason could also be that the transaction was run within US boundary, which we will never be able to confirm. However, I would trust Amex more than Citi for any transaction I make.

Billed from CX in Lantau. Did you get a line detail like this from Citi?

xx/06/2012 CATHAY PACIFIC TICKETING HONG KONG HK HKD 712.41 DR USD 90.00 DR

(This is my MPO redemption list clearing fee, which I must pay in USD despite being a HK-based MPO member with a HKD credit card. When I paid with my CX HK Amex, it used to even say Lantau HK (http://www.flyertalk.com/forum/cathay-pacific-asia-miles/910542-best-credit-card-coversion-rate-asiamiles-2009-fters-based-hk-15.html#22) specifically).

CX Marco Polo just billed me a USD-denominated fee (US$120) in HKD (HK$936, which is US$120 at the peg rate of 7.8). Biller is now "CATHAY PACIFIC AIRWAYS - TSUEN WAN HK".

"xx/10/2012. CATHAY PACIFIC AIRWAYS - TSUEN WAN HK. HKD. 936.00.DR HKD. 936.00.DR"

I dunno whether this is another cost-saving move on CX's part but actually the rate (7.8, peg) is better than the rate I would otherwise get from the credit cars company (around 7.92). I lose miles because it's not USD-denominated however.

Anyone that travels internationally frequently soon learns to get a Credit Card without these fees. I got a CapitalOne card which I use solely for ticket purchases and international Hotel charges.

Anyone that travels internationally frequently soon learns to get a Credit Card without these fees. I got a CapitalOne card which I use solely for ticket purchases and international Hotel charges.

The issue is while the card issuers in the U.S. start eliminating FTF, a lot of places still have the fee existed and go to next level. For example, 4-5% in HKG.

So getting a card without FTF is good, only if you can find one.