The_Wrath_of_Khan

I'm just wondering as I'd prefer to charge on my SPG card if they are in USD, but if they are charged in the local currency on prepaid rates then I'll be charging to a card with no FOREX fees.

pricesquire

Yes, pre-paid rates outside the US are charged in the currency of the country in which the hotel is located.

MSPeconomist

It can be the case that you are charged in the local currency but the US$ rates are definitive. So you're charged using the exchange rate on the day you check out and the amount in local currency is variable. IMO this should be made more clear at the time of booking.

CIT85

That is not my experience.

The rate in local currency is definitive, but the actual USD amount is dependent on the day the charge is processed by your CC company. So this is actually very clear in that the rate in USD will fluctuate as exchange rate fluctuates.

Flying Lawyer

They are charged in the relevant currency and not in foreign (= USD) currency

LuisHK

local ccy is definitive.

However you would have to be careful that some hotels uses dynamic currency conversion (DCC) to give you a USD figure. The rate offered by DCC is way worse than the exchange rate charged by your bank if you pay by local ccy.

TravelinSperry

And don't forget if you charge to your SPG American Express they will ding you with an additional 2.7% foreign transaction fee

MSPeconomist

IIRC there are a very few countries where the price in US$ can be definitive. If so, this should be clearly stated, usually under special conditions.

ray1111

Old thread, but looking for clarification. Specific example:

Location USA. Booking (on spg.com) St Regis Mexico City, prepaid rate USD $200, paid at booking. What will actually be charged to credit card? And will this be subject to foreign transaction fee w/SPG Amex?

Thanks.

mahasamatman

You will most likely be charged in pesos with the substandard Amex exchange rate and 2.7% foreign transaction fee. Even if you are charged in dollars, you will be be subject to the foreign transaction fee since the charge originates outside the U.S.

poncherelli

I was just recently hit with a heft DCC on a prepaid rate in EUR (my folio on checkout even lists the charge in EUR).

lcpteck

So your card was charged in USD (DCCed) but folio shows EUR? You can use Amex to avoid DCC.

poncherelli

I actually had a 2 night stay, first night postpaid and second night prepaid (I added on the second night a few days prior to arrival on an spg hot rate).

I used my no forex fee card when I booked the prepaid night through the SPG website and the reservation confirmation showed the price in euros.

Upon checkin, I gave the same card to pay for the first night and was told the second night was already taken care of. Checking out I received 2 separate folios, 1 for each night, each displaying rates and totals in euros. I forgot to ask I be charged in local currency (even though it should be the default...), and when reviewing the cc receipt later, I saw I was charged in USD at a rate of 1.285/1 when the actual rate was 1.24.

I then checked my online credit card statement and saw the the prepaid night has posted at the same 1.285 exchange rate (with no option to ever elect to pay in euros). I don't use my spg amex overseas to avoid the forex hit, but that was completely negated by the DCC charge on two fairly expensive hotel nights ($300-400/nt).

It's annoying to get stung by it on checkout (I'm usually diligent), but to charge effectively a 3.6% markup on prepaid rates with no notice is unacceptable.

lcpteck

poncherelli, I hear ya.

DCC seems to be widespread in Europe and China it seems.

I'm currently using an Amex card to negate this. Always remember to ask to pay in their local currency during check-out. However for pre-paid rates, don't think this can be done since you'll most likely be charged even before you arrive.

Anyways lesson learned. ^

wobbly wings

They are not charged in a foreign currency. They are charged in the local currency.