Question about credit card use on the Magic

[Carrie25]

As many credit cards now have transaction fees for international purchases do on ship charges show as international charges? I'm heading out on the Eastern Cruise I imagine St. Maarten would show as international but what about St. Thomas? I saw on one of my cards that they charge 3% with a minimum of $5 per transaction. I'm trying to avoid getting a $6 can of Pepsi while on vacation.

Thanks

 

[lindakmonty]

If you want sodas in port...I remember being so happy to see a pepsi machine right when you walk off in Grand Cayman. I had to have Mt. Dew!! I bought several 20 oz. bottles and took them back on the ship with me! If that is all, just take some singles. I remember buying jewelry and that on credit card in caribbean but dont remember any international charges?

 

[tinybubbles]

All your shipboard purchases will appear as a single transaction on your credit-card bill. Not to worry.

 

[ivanova]

the shipboard charges appear as domestic not international charges

in port, I'd recommend traveler's cheques (or the new traveler cheque debit card from American Express) or cash (small amounts!). There is always concern about identity theft, that using your credit card in a foreign port might be dicey.

if you're planning a large purchase (like jewelry) where cash or traveler's cheques don't make sense, then use a credit card by all means.

 

[lbgraves]

I would recommend that you find a CC company that doesn't charge a fee if you use the CC out of the country before you go on your cruise. That is insane!

 

[Horace Horsecollar]

I would recommend that you find a CC company that doesn't charge a fee if you use the CC out of the country before you go on your cruise. That is insane!

It may be insane. But it's a common practice for credit cards to charge 3% on foreign currency transactions, where the puchase is rung up in local currency and appears on your statement in US Dollars. If 3% isn't insane, at least seems excessive.

Before a recent trip to Europe, I called the Citibank and First USA (now Chase). They both charged 3%. (The way it worked with Cittbank and First USA is that Visa and MasterCard charged 1%, and the issuing bank charged 2%, for a total of 3%.) American Express only charged 2%, so I used American Express as much as possible.

By the way, before anyone takes the advice to use traveler's checks, keep in mind that it's common to lose far more than 3% when cashing them for a foreign currency. There's a spread between the "buy" and "sell" price for foreign currency exchanges, and there's often a flat fee on top of that.

All this isn't an issue for the DCL shipboard accounts or for transactions in the US ports -- St. Thomas, USVI, and Key West, FL. In these cases, the US Dollar is the official currency.

In other ports, prices may be marked in dollars, which are valid if you pay cash. But if you pay by credit card, you'll want to ask if the transaction is in US Dollars or in local currency. If it's local currency, your credit card statement may end up showing a higher price than you expected to pay.

 

[Horace Horsecollar]

I saw on one of my cards that they charge 3% with a minimum of $5 per transaction.

The $5 miniumum really is insane! What credit card is that?

When I checked earlier this year, Citibank, First USA (now Chase), and American Express didn't have a minimum -- just the exchange fee of 3% or 2%.

 

[lbgraves]

Maybe it is because we don't use our CCs in the ports that we haven't run across this problem. When we traveled to Canada we did use our CC and were not charged anything extra for this. I haven't been quoted a different rate when I pulled out the TCs to pay for something in port on either the eastern or western either. Maybe that is because we only buy our souvies from the local venders and not in the stores? The venders have always cut the total from what is posted when we add it all together.

 

[Horace Horsecollar]

Maybe it is because we don't use our CCs in the ports that we haven't run across this problem. When we traveled to Canada we did use our CC and were not charged anything extra for this.

Actually, if you used an American Visa or MasterCard in Canada, you were charged at least 1%, and it's likely you were charged 3%. It's not the store that charges you extra, it's the credit card issuer.

Stores in Canada price their goods in Canadian Dollars. When an American uses an American credit card in Canada, the Canadian Dollar tranasaction appears on the billing statement in US Dollars. Let's suppose I buy something for $100 Canadian. My receipt shows $100 Canadian. My credit card statement shows US$85. In fact, what I don't see is that there's a $3 fee. Otherwise the bill would only be US$82.

A 1% fee would be reasonable. But the banks charge an extra 2% because they can get away with it -- and most credit card holders aren't even aware they're being charged more.

I haven't been quoted a different rate when I pulled out the TCs to pay for something in port on either the eastern or western either.

If you used US Dollar travelers checks, and the goods are marked in US Dollars, there's no exchange rate involved.

But, if you want a rude shock, try to exchange some US Dollar travelers checks for GB Pounds at a currency exchange or bank in London. Ouch! It turned out to be far more advantageous to get cash from ATM machines.

 

[Carrie25]

The $5 miniumum really is insane! What credit card is that?

When I checked earlier this year, Citibank, First USA (now Chase), and American Express didn't have a minimum -- just the exchange fee of 3% or 2%.

I believe I made a mistake on this . I was reading the terms for the Disney Chase Visa and it's the straight 3%.

here's right from the site

International Transactions: 3% of the U.S. dollar amount of the transaction, whether originally made in U.S. dollars or converted from a foreign currency.

 

[Carrie25]

It may be insane. But it's a common practice for credit cards to charge 3% on foreign currency transactions, where the puchase is rung up in local currency and appears on your statement in US Dollars. If 3% isn't insane, at least seems excessive.

Before a recent trip to Europe, I called the Citibank and First USA (now Chase). They both charged 3%. (The way it worked with Cittbank and First USA is that Visa and MasterCard charged 1%, and the issuing bank charged 2%, for a total of 3%.) American Express only charged 2%, so I used American Express as much as possible.

By the way, before anyone takes the advice to use traveler's checks, keep in mind that it's common to lose far more than 3% when cashing them for a foreign currency. There's a spread between the "buy" and "sell" price for foreign currency exchanges, and there's often a flat fee on top of that.

All this isn't an issue for the DCL shipboard accounts or for transactions in the US ports -- St. Thomas, USVI, and Key West, FL. In these cases, the US Dollar is the official currency.

In other ports, prices may be marked in dollars, which are valid if you pay cash. But if you pay by credit card, you'll want to ask if the transaction is in US Dollars or in local currency. If it's local currency, your credit card statement may end up showing a higher price than you expected to pay.

Thanks for the replies.

When I was in Spain a few years ago I know that Amex was not anywhere near as widely accepted as Visa was. Do you know if this is the case at St. Thomas and St. Marten? I imagine St. Thomas should be like in the states but I wonder about St. Marten.

 

[lbgraves]

I have had no problem using AmEx TCs in St. Maarten, St. Thomas, Cozumel, or Grand Cayman. Noone even batted an eye.

 

[tvguy]

St. Thomas IS the U.S, so no chance of any fees there.
You need to check with your credit card company to see what their policy is. It may also vary with the type of card you have.
I have a Platinum Visa card thru Wells Fargo, and there is no charge for charges in a foreign country.

My son traveled in Spain and France last year with a plain old Bank Of America Visa card, and the only fees he encountered were when he got cash from another banks ATM.

 

[Horace Horsecollar]

My son traveled in Spain and France last year with a plain old Bank Of America Visa card, and the only fees he encountered were when he got cash from another banks ATM.

That might be the only fees he was aware of.

Visa and MasterCard charge a 1% currency conversion fee. There's no way for Visa and MasterCard users to avoid that. Many Visa and MasterCard issuers (such as Citibank) charge an additional 2%, for a total of 3%.

Please reread my description (earlier in this thread) of why an American using a credit card in Canada might not realize that a 3% charge has been added on. The same content applies to Spain, France, and other international destinations.

And it's getting worse...

Visa now charges a 1% fee on foreign purchases, even if the purchases are made in US Dollars! MasterCard will begin doing the same in October of this year. And issuing banks can charge an additional 2%. In this case it will be more obvious. Your receipt will show $100, but your statement will show $103.

As Carrie25 wrote, Chase Disney Visa charges 3% for all international transactions, even those that are in US Dollars.

 

[tvguy]

That might be the only fees he was aware of.

Visa and MasterCard charge a 1% currency conversion fee. There's no way for Visa and MasterCard users to avoid that. Many Visa and MasterCard issuers (such as Citibank) charge an additional 2%, for a total of 3%.

Please reread my description (earlier in this thread) of why an American using a credit card in Canada might not realize that a 3% charge has been added on. The same content applies to Spain, France, and other international destinations.

And it's getting worse...

Visa now charges a 1% fee on foreign purchases, even if the purchases are made in US Dollars! MasterCard will begin doing the same in October of this year. And issuing banks can charge an additional 2%. In this case it will be more obvious. Your receipt will show $100, but your statement will show $103.

As Carrie25 wrote, Chase Disney Visa charges 3% for all international transactions, even those that are in US Dollars.

I really think the issuing bank and their policies may be the difference I am seeing. My bank waivers all fees for all services so that may be the difference.
I do travel frequently to Canada, but normally pre-order Canadian dollar travelers checks for my expenses, I do use my Credit Card to rent a car, but always pay it off in travelers checks. Now, I do know that VISA used to have the best exchange rates for Canada, but I haven't charged anything there recently.