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Airbnb's sneaky 3% FX fee - deceitful and infuriating, and now unavoidable?

Airbnb's sneaky 3% FX fee - deceitful and infuriating, and now unavoidable?

Old May 9, 2017, 6:19 pm
  #61  
 
Join Date: May 2017
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This drives me crazy

I ran into this issue with AirBNB - first time I used it last fall. It is clearly dynamic currency conversion - and seriously inflates their fee. I had a series of useless phone calls and email exchanges with AirBNB, citing VISA's policy on dynamic currency conversion - final response from AirBNB here:
"I completely understand your question, however the currency in which you pay in is based on the currency you have set on your profile, as well as on the currency supported by your payment method.

If for example you're paying with a credit card issued in the US, you'll be charged in USD.

I checked your profile and saw that you have the currency on your profile set as USD. I also checked the card that you used to pay for this reservation in question and it was issued in the US as well.

I can assure you that I completely understand your point but unfortunately that is an automated system feature.

I'm really truly sorry about this and I wish I really could do more but unfortunately this is a feature that we are unable to overcome."


At this point, I noticed that the rental I had been in the process of booking - suddenly increased in both price and minimum stay requirement. I contacted the host, who said this was managed by AirBNB. I had very specific needs for a rental, so decided to give up the fight, fearing that not only would I get penalized on price, but that AirBNB could suspend/cancel my account. I'm sorry to say that I buckled, and gave into this "system feature".

Also - in researching options - I realized that Home Away (or VRBO who I have used for YEARS) has followed AirBNB in not only charging a "service fee" but also dynamic currency conversion. I'm a big believer in private home rentals - have done it for more than 20 years for family gatherings - but I think AirBNB has ruined it for all of us.
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Old May 9, 2017, 6:30 pm
  #62  
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Originally Posted by greentravelgal

Also - in researching options - I realized that Home Away (or VRBO who I have used for YEARS) has followed AirBNB in not only charging a "service fee" but also dynamic currency conversion. I'm a big believer in private home rentals - have done it for more than 20 years for family gatherings - but I think AirBNB has ruined it for all of us.
Is this a new "enhancement" (as our friends on the BA forum use the term)?
I booked 3 places in Italy late last year on HomeAway. I used HA payments. (Rentals coming up next month.) There was a service fee (ugh) but everything was paid in euros using my US card with no foreign exchange fees. In fact, the days I booked were based on the exchange rate. I saved a couple of hundred dollars by paying attention to XE.
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Old May 14, 2017, 4:31 pm
  #63  
 
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Do they charge the FX fee/rate for the refunds or price adjustments too?

What if you pay with a Gift card does the rate apply to the currency of the GC?

Anybody know how to solve issues with GC that don't work?
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Old May 30, 2017, 9:18 am
  #64  
 
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Frank, yes, paying with a gift card -- or coupon -- still subjects you to the ridiculous fee. If your "booking credit card" is in another country, they will force you to accept their 3-percent mark-up on the property.

Today, I wrote the European Commission about this scam. I believe there may be an opportunity for the Commission to punish Airbnb for this ridiculous charge, because it means some Europeans -- those living outside the eurozone and paying for a property in the eurozone, for example -- will be charged a different price for the same product, based on country of residence.

Given the increasingly problematic relationship with the USA, and the Commission's past regularly actions against Google, I think if enough of us complain to the EU, we might see some action against Airbnb.

You can contact the Commission here: http://ec.europa.eu/competition/cont...uments_en.html
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Old Jul 6, 2017, 5:36 am
  #65  
 
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A couple of months ago I initiated a chargeback with Bank of America for this reason. The value of the stay was ~1500; so the chargeback amount was around $42 (the amount I was overcharged due to their use of DCC).

I won the case, and received my $42 back. AirBnB sent me some automated email asking why I did a chargeback. I clicked the "other" box. I never heard from them again.

I've since made another booking, and am preparing to file another chargeback for the same reason.

If we all do this, Visa / MC might eventually force them into compliance.
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Old Jul 6, 2017, 9:36 am
  #66  
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Originally Posted by VolandoMe
A couple of months ago I initiated a chargeback with Bank of America for this reason. The value of the stay was ~1500; so the chargeback amount was around $42 (the amount I was overcharged due to their use of DCC).

I won the case, and received my $42 back. AirBnB sent me some automated email asking why I did a chargeback. I clicked the "other" box. I never heard from them again.

I've since made another booking, and am preparing to file another chargeback for the same reason.

If we all do this, Visa / MC might eventually force them into compliance.
This was my experience too. I never heard from them after I clicked the "other" box. I would gladly have told them it was because of DCC.
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Old Jul 15, 2017, 4:04 pm
  #67  
 
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Originally Posted by stvr
Doesn't Amex forbid DCC?
Every network forbids what AirBnB does, at least in principle (they may argue it doesn't go against the letter of the law as they have multiple merchant accounts).

Then again, AirBnB flagrantly violates actual laws relating to hotel accomodation. If they're going to operate illegally why wouldn't they also ignore card network rules? I wish the networks would cut off processing to them but I can't imagine them doing so.

DCC is evil. But in this case it's a relatively minor evil compared to the damage to society AirBnB causes in other ways (raising rents, destroying communities, driving the poorest people to the fringes of society). All I can say is I hope they go out of business soon. The sooner the better.
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Old Jul 15, 2017, 5:22 pm
  #68  
 
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Originally Posted by abcx
This was my experience too. I never heard from them after I clicked the "other" box. I would gladly have told them it was because of DCC.
Do they ban your account or make you pay the chargeback amount + fee if you want to use your account again? I heard that's what Uber does for the fake vomit charges.
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Old Jul 15, 2017, 5:40 pm
  #69  
 
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Originally Posted by AllieKat

DCC is evil. But in this case it's a relatively minor evil compared to the damage to society AirBnB causes in other ways (raising rents, destroying communities, driving the poorest people to the fringes of society). All I can say is I hope they go out of business soon. The sooner the better.
Thanks for the editorial. As I long as I get cheap accommodation, I don't care where the poor live.
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Old Jul 15, 2017, 6:11 pm
  #70  
 
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Originally Posted by AllieKat
Every network forbids what AirBnB does, at least in principle (they may argue it doesn't go against the letter of the law as they have multiple merchant accounts).

Then again, AirBnB flagrantly violates actual laws relating to hotel accomodation. If they're going to operate illegally why wouldn't they also ignore card network rules? I wish the networks would cut off processing to them but I can't imagine them doing so.

DCC is evil. But in this case it's a relatively minor evil compared to the damage to society AirBnB causes in other ways (raising rents, destroying communities, driving the poorest people to the fringes of society). All I can say is I hope they go out of business soon. The sooner the better.
THANK YOU. Someone finally said it. DC's rent prices are going up and up, and it certainly doesn't help when Airbnb facilitate significant losses in housing supply. They can go to hell for all I care.

I'm just going to leave this PDF here for everyone else: http://dcsharebetter.org/wp-content/...Report_Web.pdf

Originally Posted by ChinaShrek
Thanks for the editorial. As I long as I get cheap accommodation, I don't care where the poor live.
It must be so great to lack even a shred of empathy for other people.

Last edited by emmanuel_t; Jul 15, 2017 at 6:16 pm
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Old Jul 15, 2017, 10:03 pm
  #71  
 
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The other side to the coin of affordable housing is that some poor people use AirBnb to supplement their income by renting out the room of a transient family member (eg. college student) when they are away, so AirBnb could also help poor people. I definitely agree that units exclusively for Airbnb shouldn't be allowed in areas with rent control.
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Old Jul 16, 2017, 12:33 am
  #72  
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Originally Posted by 1353513636
Do they ban your account or make you pay the chargeback amount + fee if you want to use your account again? I heard that's what Uber does for the fake vomit charges.
They haven't done that yet.
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Old Jul 16, 2017, 1:58 am
  #73  
 
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So 8 days later they finally replied, and refunded me - so I didn't need to file a chargeback against them this time. Here's what they wrote:

Hi (my name),

(agen't name) here from Airbnb, one of the Case Managers from Airbnb. I hope everything is good once you have this message.

I truly apologize for the inconvenience. But rest assured that I will be here to help you out resolve this matter.

I am more gald to refund you the $13usd that was charged on your card. Pleae note that refund usually takes 5-15 business days back to your payment method on-file.

Based on the details, when the currency youre paying with is different from the default currency of the country where the listing or experience are located, we convert your payment automatically.

The base exchange rate uses data from one or more third parties, such as OANDA. Its updated regularly, but may not be identical to the real-time market rate. If youre paying in a currency different from the default currency of the country where the listing or experience are located, we also charge a 3% conversion fee on your total cost; the conversion fee accounts for Airbnbs holding costs and foreign currency risks.

I know that this is beyond your control and I am very sorry for getting through all of this.

I hope I have assisted you well today. In case I missed out anything, will you be so kind to let me know via return email? I will be more than glad to be at your service again.

Kind regards,

(agents name)
Clearly they know they're in the wrong here, so we need to keep applying pressure to force them into compliance.
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Old Jul 22, 2017, 8:35 am
  #74  
 
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I didn't bother with AirBnB after I found out they force charge DCC (thanks FT).

I absolutely HATE merchants that sneak a DCC fee in (paypal) and others that FORCE a DCC (AirBnB). Most unethical, predatory and unscrupulous business practice... that basically preys on people's financial ignorance.

Good thing the property I was looking for was listed on another site (homeaway.hk by expedia) and I booked there for cheaper and without a stupid DCC fee.

That's what I will encourage people to do - vote with their wallet...

And the thing is, I was going to book through Airbnb (didn't know anyone else) until I found out about their DCC practices... and that made me realise there were alternatives ^^

Last edited by ermen; Jul 22, 2017 at 9:10 am
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Old Aug 9, 2017, 10:35 am
  #75  
 
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Hm, often AirBnB is the only way "poor" people can afford traveling and a cheaper accommodation. Who does not say hotels have a secret cartel agreement?
I think AirBnB is a good idea as long as one shares the accommodation with the owner.
Nevertheless, AirBnB in DC was more expensive than a hotel and I did not like my host in DC.

But I will definitely write to AirBnB for the DCC fee in case this will happen.
Thanks for pointing out other options like homeaway.
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