Airbnb's sneaky 3% FX fee - deceitful and infuriating, and now unavoidable?
Nov 13, 2016, 12:36 pm
#16
FlyerTalk Evangelist
Join Date: Jun 2013
Posts: 17,460
Many is not most properties are also listed on sites other than Airbnb. Check especially HomeAway. They bill in the property's currency, while still standing as the escrow holder until the rental commences. You pay a deposit at booking, the balance about a month prior to arrival. All through their website by CC, charged directly in the foreign currency.
And this difference shows in the pricing, generally noticeably more expensive on Airbnb.
And this difference shows in the pricing, generally noticeably more expensive on Airbnb.
Nov 13, 2016, 3:29 pm
#17
Original Poster
Join Date: Dec 2008
Posts: 3,032
This problem is not new. On a $1500 cad stay they charged me in CAD and performed the conversion. I asked through multiple emails to opt out of the Dynamic Currency Conversion, as is my right, I believe as a consumer. They declined. I called and escalated the matter. Still declined.
Here's where it get's interesting though: I then tried to change my card later on for a different purpose. I was switching from Amex to Mastercard to fulfill spend requirements. They informed me over email that I would not be able to issue a chargeback for the DCC. I never had an intention of doing that, but now that they said it, I googled it, according to Visa/MC rules you can issue a chargeback for DCC. Airbnb seems to know about this and actively tries to dissuade you from doing it. I find this whole thing disgusting on AirBNB's part.
Here's where it get's interesting though: I then tried to change my card later on for a different purpose. I was switching from Amex to Mastercard to fulfill spend requirements. They informed me over email that I would not be able to issue a chargeback for the DCC. I never had an intention of doing that, but now that they said it, I googled it, according to Visa/MC rules you can issue a chargeback for DCC. Airbnb seems to know about this and actively tries to dissuade you from doing it. I find this whole thing disgusting on AirBNB's part.
I've never liked them because both their hosts and customer service are arrogant. I have sterling reviews and have had hosts decline me for 'not being the right fit'. Customer service should be renamed lack of service for how unhelpful they are. I would be glad to see Booking.com and HomeAway kill them.
Nov 13, 2016, 3:32 pm
#18
Original Poster
Join Date: Dec 2008
Posts: 3,032
Many is not most properties are also listed on sites other than Airbnb. Check especially HomeAway. They bill in the property's currency, while still standing as the escrow holder until the rental commences. You pay a deposit at booking, the balance about a month prior to arrival. All through their website by CC, charged directly in the foreign currency.
And this difference shows in the pricing, generally noticeably more expensive on Airbnb.
And this difference shows in the pricing, generally noticeably more expensive on Airbnb.
Free tip: I have always been able to save 10% just by asking apartments I'm interested in for a better price.
Nov 13, 2016, 4:04 pm
#19
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,767
Nov 14, 2016, 6:42 am
#22
Join Date: Jun 2011
Location: Sussex, England
Posts: 59
(Background: You pay a host in your local currency and they tack on 3% to convert it to the host's local currency even if you have a no-fee card and can pay directly in the host's currency. They quote you a rate in your local currency and you'd never realize it unless you paid close attention during the checkout process that they are screwing you by 3% on the FX conversion.)
It used to be that you could change the currency at the bottom of the page to the host's currency and avoid Airbnb's stupid 3% 'convenience' fee for currency conversion (they marked up the exchange rate). I now see that there is no way to avoid this - even if I change the currency at the bottom of the page and the country of my residence and the billing country of my card, it still wants to charge me in USD instead of EUR for a booking in Europe and mark up the interbank USD/EUR exchange rate that I would get through my card.
Frankly this is deceitful and infuriating. Every other OTA manages to handle multiple currencies without stealing 3% from me.
Isn't this against Visa / Mastercard rules about Dynamic Currency Conversion?
It used to be that you could change the currency at the bottom of the page to the host's currency and avoid Airbnb's stupid 3% 'convenience' fee for currency conversion (they marked up the exchange rate). I now see that there is no way to avoid this - even if I change the currency at the bottom of the page and the country of my residence and the billing country of my card, it still wants to charge me in USD instead of EUR for a booking in Europe and mark up the interbank USD/EUR exchange rate that I would get through my card.
Frankly this is deceitful and infuriating. Every other OTA manages to handle multiple currencies without stealing 3% from me.
Isn't this against Visa / Mastercard rules about Dynamic Currency Conversion?
For the purposes of this step-by-step list, my card is UK-based/statement is in GBP and I wanted to pay in the host's currency (EUR). Airbnb didn't seem like they would allow it.
Try to do this before you set forth with doing the actual booking, but here's how it works:
-- If you have only one payment card listed in their system, add a new payment card (even one you have no intention of using for Airbnb payments)
-- Delete your existing card
-- Add your old preferred card again, but under "Country of Issue" put the destination country (e.g. Spain -- this works even when typing in your non-Spanish billing-address postcode). I.e. to be clear, I selected "Spain" but typed in my UK postcode.
-- Pay as usual ... and you can pay in the host's currency that is different from your card's base currency without Airbnb's scandalous mark-up!
It works!
Nov 14, 2016, 4:07 pm
#24
Join Date: Aug 2006
Location: NYC
Programs: AA LT G (1MM);DL G, UA GM
Posts: 2,028
Nov 15, 2016, 6:09 am
#26
FlyerTalk Evangelist
Join Date: Dec 2007
Location: BOS/ORH
Programs: AS 75K
Posts: 18,323
They do that more to stop people from taking advantage of fares they market for people who dont live in the US rather than to make money off currency conversion
Nov 20, 2016, 7:54 am
#28
Join Date: Sep 2008
Location: AUS
Programs: BAEC Gold, AA PPro, Hyatt Globalist, Amex Plat
Posts: 7,043
Regards
Nov 20, 2016, 9:26 am
#29
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,095
UA fares available to those not living in the US are easily purchased with US credit cards on OTAs in every developed country with UA service and also in many developing countries with UA service too.
Nov 25, 2016, 9:19 pm
#30
Join Date: Apr 2005
Posts: 522
No longer seeing fine print mention of conversion
I haven't used Airbnb since June 2012. Then, when booking an apartment in Rome I noticed there was a difference in price depending on whether I had set my account to EUR, or set to USD.
From time to time I've checked a listing, both with my account set to EUR and with USD, and I've continued to notice a difference. But I'd see under the Total amount fine print explaining that the host's currency was in EUR and I'd be charged in USD with 3% fee. Or if I was set to EUR, I'd see fine print stating the amount I'd be charged in USD.
However now I'm seeing something different. I no longer see any fine print. (The example below is for a listing in Italy, and my address on file is in the U.S., but I don't have a stored cc in my Airbnb profile).
If I first select USD as my currency, then click on the listing and then click on Book after entering my dates, I get the payment page. And there I see absolutely no mention that the host's currency is EUR, and no mention there's a conversion fee.
And, if I start over, and select EUR as my currency, I end on the payment page showing all amounts in EUR, with no mention that I'll be charged in USD.
I have not gone so far as filling out my payment info, because that page shows a Submit payment button with no wording that I'd have the chance to review it - and I don't want to book anything yet.
Could this be a browser issue? I'm using Firefox 50.0.
Has anyone else come across this?
(It appears on the surface that I'd be able to select EUR as my currency and book the Italian apartment with my cc being charged in EUR - and thus avoid their 3% fee.)
From time to time I've checked a listing, both with my account set to EUR and with USD, and I've continued to notice a difference. But I'd see under the Total amount fine print explaining that the host's currency was in EUR and I'd be charged in USD with 3% fee. Or if I was set to EUR, I'd see fine print stating the amount I'd be charged in USD.
However now I'm seeing something different. I no longer see any fine print. (The example below is for a listing in Italy, and my address on file is in the U.S., but I don't have a stored cc in my Airbnb profile).
If I first select USD as my currency, then click on the listing and then click on Book after entering my dates, I get the payment page. And there I see absolutely no mention that the host's currency is EUR, and no mention there's a conversion fee.
And, if I start over, and select EUR as my currency, I end on the payment page showing all amounts in EUR, with no mention that I'll be charged in USD.
I have not gone so far as filling out my payment info, because that page shows a Submit payment button with no wording that I'd have the chance to review it - and I don't want to book anything yet.
Could this be a browser issue? I'm using Firefox 50.0.
Has anyone else come across this?
(It appears on the surface that I'd be able to select EUR as my currency and book the Italian apartment with my cc being charged in EUR - and thus avoid their 3% fee.)