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Cathay Pacific USA internet booking triggered foreign transaction fee

Cathay Pacific USA internet booking triggered foreign transaction fee

Old Aug 29, 2012, 10:24 pm
  #16  
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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.
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Old Aug 30, 2012, 12:14 am
  #17  
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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.

Originally Posted by JALPak
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.
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Old Aug 30, 2012, 4:14 am
  #18  
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Originally Posted by garykung
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
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Old Aug 30, 2012, 4:56 am
  #19  
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Originally Posted by garykung
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/f...nsaction-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 cant 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.
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Old Aug 30, 2012, 12:18 pm
  #20  
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Originally Posted by JALPak
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).
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Old Aug 30, 2012, 1:20 pm
  #21  
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Originally Posted by percysmith
Agree

http://www.credit.com/blog/2009/04/f...nsaction-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
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Old Aug 30, 2012, 5:34 pm
  #22  
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Originally Posted by kramerican
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/fo...ow.php?id=5987
in AU, both Visa and MC does this http://www.nab.com.au/wps/wcm/connec...e/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....s/BlueAECB.pdf
https://secure.cmax.americanexpress...._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.

Last edited by percysmith; Sep 2, 2012 at 6:51 am
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Old Aug 30, 2012, 5:46 pm
  #23  
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Originally Posted by kramerican
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.
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Old Aug 31, 2012, 9:14 pm
  #24  
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Originally Posted by percysmith
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.
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Old Aug 31, 2012, 9:20 pm
  #25  
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Originally Posted by percysmith
I'm not sure about the US
But from the limited fee tables I can see
https://secure.cmax.americanexpress....s/BlueAECB.pdf
https://secure.cmax.americanexpress...._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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Old Sep 1, 2012, 3:51 am
  #26  
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Originally Posted by Happy
Originally Posted by percysmith
I'm not sure about the US
But from the limited fee tables I can see
https://secure.cmax.americanexpress....s/BlueAECB.pdf
https://secure.cmax.americanexpress...._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?
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Old Sep 1, 2012, 7:39 pm
  #27  
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Originally Posted by Happy
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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Old Sep 1, 2012, 9:34 pm
  #28  
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Originally Posted by percysmith
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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.

Originally Posted by swy
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/credi...tion-fees.html
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Old Sep 2, 2012, 6:38 am
  #29  
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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-ca...ng-up-1267.php
http://creditcardforum.com/blog/amer...ansaction-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

Last edited by percysmith; Sep 2, 2012 at 7:06 am
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Old Sep 2, 2012, 6:54 am
  #30  
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Originally Posted by percysmith
I'm not sure about the US
But from the limited fee tables I can see
https://secure.cmax.americanexpress....s/BlueAECB.pdf
https://secure.cmax.americanexpress...._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/ameri...-abroad.html#7

Last edited by percysmith; Sep 2, 2012 at 7:07 am
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