International Hotel booking via Agoda | Credit Card charges

[wanderer0]

yes , I have Zero forex cards, AU Ixigo, UNI X gold, Yes marquee, SBI, CB, One card. which card do you suggest to use and in which currency ? please help

For Online transactions: So for 0 forex cards, you pay in foreign currency. Simple as that. For Yes Marquee and SBI CB you can choose local or foreign whichever because their forex & DCC charges are same(1% & 3.5% respectively). I think Marquee gives you best reward points in terms of value so go with that.

For Offline transactions: don't use SBI CB and always choose to pay in foreign currency. Never in INR. So use Marquee or any 0 forex cards for offline swiping.

Also check this: https://technofino.in/community/thr...national-transactions-and-travel-guide.39357/

 

[wanderer0]

Also a tip for hotel booking @KLB@96, use skyscanner instead of checking multiple sites and don't book from agoda mobile app, book it from browser even when you're using phone. It shows high prices on mobile app even if you're coming from skyscanner.

 

[KLB@96]

For Online transactions: So for 0 forex cards, you pay in foreign currency. Simple as that. For Yes Marquee and SBI CB you can choose local or foreign whichever because their forex & DCC charges are same(1% & 3.5% respectively). I think Marquee gives you best reward points in terms of value so go with that.

For Offline transactions: don't use SBI CB and always choose to pay in foreign currency. Never in INR. So use Marquee or any 0 forex cards for offline swiping.

Also check this: https://technofino.in/community/thr...national-transactions-and-travel-guide.39357/

Thank you for suggestion

 

[Dragon_slayer]

Yes. Bank can only charge one. If you pay in INR then there's no Forex(foreign exchange) fee because Agoda has already done the conversion for you and the bank gets mad and then it charges DCC which is mostly lower so you still save some money.

Oh wow. I thought i was being charged both DCC and Forex.

 

[wanderer0]

Oh wow. I thought i was being charged both DCC and Forex.

You're not alone. Many people here think so. And you're not completely wrong because DCC is a tricky thing to understand.

If you don't mind let me clarify it.

Forex markup is simple. You pay in USD or anything, your bank converts it to INR and you pay forex markup (usually 0-3.5%). So most people just get a 0 forex card, pay in local currency and live happily. However if you wanna dig deeper and save more money, keep reading.

DCC comes into picture only when you pay in INR. It has two parts:

1. DCC service: this is the service provided by the foreign merchant so you can pay in INR. The merchant's bank handles the currency conversion and adds some charges and you pay it all in INR. If you think about it this is just forex markup but from merchant bank side. Put simply, merchant bank is levying forex markup on you this time, instead of your bank. It ranges from 0-5%. This is the most important part for us.
2. DCC fee: this is a penalty from your Indian bank because you paid that juicy forex markup to a foreign bank instead of your own bank. It's usually 1-3.5%.

Now people who say you pay both Forex markup + DCC when you pay in INR are right but not entirely because the forex markup is already included in the amount that is shown to you in INR. Yes you pay it but not to your own bank. Your bank only levies DCC on such transactions.

So....

1. For offline swiping abroad: Because DCC service charges from merchant bank(aka their Forex markup) can go as high as 5%, it's better to pay in their local currency and let your bank put Forex markup on it. Simple and cost effective.

2. For some online trasactions on international sites (like agoda): their DCC service is basically free, meaning no additional charge from merchant bank. So depending on your card, it may be better to pay in INR and let your bank add DCC fee on top of it because usually DCC is lower than forex markup for Indian banks (except ICICI).

In simple words, for online txns pay in INR if your cards has high forex markup but low DCC otherwise pay in local currency.

This is the part where people get confused. They think their bank will still add Forex markup if you pay in INR which is simply not true because merchant bank has already done that. Hope it helps. I should probably write a wiki at this point.

 

[sunit123]

any reason to pay in USD ? I have UNI X. Shall I use this on Booking.com/Tripcom etc ? no DCC charges ?

If you pay in USD, NO DCC & No Conversion charges (Conversion of USD to local currency by website)..You will only pay live Visa rate without any fees

If you pay in INR, firstly agoda convert USD to INR (which is normally 2% less than live VISA rate and then your bank charge DCC, which is normally 2% to 3.5% so you lose around 4% to 7.5%..Some banks also charge additional forex fees (Which is hidden as conversion rate)...So you might end up paying triple charges i.e. DCC, conversion rate by website and forex fees

Do not fell for chiller rewards and headache....Keep it Sweet & SIMPLE and pay in USD with zero forex credit card.

 

[wanderer0]

This does not seem factual at all.

If you pay in USD, NO DCC & No Conversion charges (Conversion of USD to local currency by website)..You will only pay live Visa rate without any fees

Bad advice. You shouldn't pay in USD if you are paying to a merchant that takes EURO or anything else. This will not end up good.

If you pay in INR, firstly agoda convert USD to INR (which is normally 2% less than live VISA rate

Wrong information. Agoda converts on VISA rates and doesn't charge anything extra. See the proof in same thread. You can go to agoda.com and check it yourself. Most other international hotel/flight aggregators do the conversion on par with VISA rates with minimal fee if at all.

and then your bank charge DCC, which is normally 2% to 3.5%

Again wrong. HDFC/YES/Indusind has 1%+GST DCC. Axis has 1.5%+GST DCC. Only ICICI and SBI charge 3.5% DCC. And most premium cards have low DCC (eg: IDFC).

so you lose around 4% to 7.5%.

If you book a hotel from Agoda and pay in INR, you only pay 1% or 1.5% extra(DCC). See the proof in same thread. You can book a refundable hotel on agoda and see for yourself.

.Some banks also charge additional forex fees (Which is hidden as conversion rate)...So you might end up paying triple charges i.e. DCC, conversion rate by website and forex fees

Simply wrong. If you have ever faced forex charges and dcc together, you were scammed. Raise an issue with your bank.

Do not fell for chiller rewards and headache....Keep it Sweet & SIMPLE and pay in USD with zero forex credit card.

Solid advice for most people who are paying to a merchant in USA. Everyone else should pay in local currency with 0 forex card for a simple life.

 

[wanderer0]

Also a fun fact for those who are paying in local currency with low forex card (1%, 1.5% etc.) instead of zero forex card:

Some banks, like Axis, say that when you pay in local currency and if your transactions has been refunded, you will pay forex markup again on the refund as well. So make sure you get a proper zero forex card or pay in INR if you get good conversion rates and DCC is low.

 

[sunit123]

This does not seem factual at all.

Bad advice. You shouldn't pay in USD if you are paying to a merchant that takes EURO or anything else. This will not end up good.

Wrong information. Agoda converts on VISA rates and doesn't charge anything extra. See the proof in same thread. You can go to agoda.com and check it yourself. Most other international hotel/flight aggregators do the conversion on par with VISA rates with minimal fee if at all.

Again wrong. HDFC/YES/Indusind has 1%+GST DCC. Axis has 1.5%+GST DCC. Only ICICI and SBI charge 3.5% DCC. And most premium cards have low DCC (eg: IDFC).

If you book a hotel from Agoda and pay in INR, you only pay 1% or 1.5% extra(DCC). See the proof in same thread. You can book a refundable hotel on agoda and see for yourself.

Simply wrong. If you have ever faced forex charges and dcc together, you were scammed. Raise an issue with your bank.

Solid advice for most people who are paying to a merchant in USA. Everyone else should pay in local currency with 0 forex card for a simple life.

Ye loh bhai...T&C padh lo theek se agoda ka....They charge 5% extra...I paid this 5% when i paid in INR....If u select USD and make payment in USD then this 5% is not applicable

 

[sunit123]

Ye loh bhai...T&C padh lo theek se agoda ka....They charge 5% extra...I paid this 5% when i paid in INR....If u select USD and make payment in USD then this 5% is not applicable


View attachment 111161

also this 5% is not mentioned anywhere while booking....I compared the final bill amount (including DCC) in CC when paid in INR and when paid in USD then i came to know about this 5% fees

 

[wanderer0]

Ye loh bhai...T&C padh lo theek se agoda ka....They charge 5% extra...I paid this 5% when i paid in INR....If u select USD and make payment in USD then this 5% is not applicable

Did you not read the "The Additional Amount will not apply if your selected Charge Currency is the same as Display Currency." part? It means if it shows in INR and you're charged in INR(because of your card), there's no additional charge. You're confusing charge currency with product currency. Read the entire TnC. This is what everyone here experienced too.

also this 5% is not mentioned anywhere while booking....I compared the final bill amount (including DCC) in CC when paid in INR and when paid in USD then i came to know about this 5% fees

Show us that transaction screenshot here. This is definitely not normal. Let's help you get your 5% back.

 

[sunit123]

Bad advice. You shouldn't pay in USD if you are paying to a merchant that takes EURO or anything else. This will not end up good.

What i meant was select the default currency which can be USD, Euro or anything

Wrong information. Agoda converts on VISA rates and doesn't charge anything extra. See the proof in same thread. You can go to agoda.com and check it yourself. Most other international hotel/flight aggregators do the conversion on par with VISA rates with minimal fee if at all.

Wrong info...They go by Bloomberg Generic Composite Rate.

Again wrong. HDFC/YES/Indusind has 1%+GST DCC. Axis has 1.5%+GST DCC. Only ICICI and SBI charge 3.5% DCC. And most premium cards have low DCC (eg: IDFC).

Include Foreign Currency Markup (FCY) fee from HDFC bank etc which might be applicable in some cases

If you book a hotel from Agoda and pay in INR, you only pay 1% or 1.5% extra(DCC). See the proof in same thread. You can book a refundable hotel on agoda and see for yourself.

Wrong info...Add 5% charged by agoda

Simply wrong. If you have ever faced forex charges and dcc together, you were scammed. Raise an issue with your bank.

Study about Foreign Currency Markup (FCY) fee charged by Indian banks...It is applicable when foreign website charge in INR but their payment g/w is outside India like on paypal.

Solid advice for most people who are paying to a merchant in USA. Everyone else should pay in local currency with 0 forex card for a simple life.

Completely wrong.....Pay in USD to save money

 

[sunit123]

Basic definition of DCC (Dynamic Currency Conversion) is that it is applicable during international transactions where the user chooses to pay in their home currency instead of the local currency at a point-of-sale (POS) terminal or during an online purchase. So in this case local or charge currency is INR but the default current of POS/Online is USD/Euro


In short DCC is applicable when charge and display currency are different so you are paying in INR but the POS currency or online currency of merchant is different so 5% is charged extra

 

[wanderer0]

What i meant was select the default currency which can be USD, Euro or anything

That's fine then. As long as it's local currency with 0 forex card.

Wrong info...They go by Bloomberg Generic Composite Rate.

My bad. Not much different from Visa still. It's same rate. No additional fee whatsoever.

Include Foreign Currency Markup (FCY) fee from HDFC bank etc which might be applicable in some cases

Define "some cases". I haven't seen them imposing anything like that on a DCC txn till date.

Wrong info...Add 5% charged by agoda

Show a single transaction like that from your history as you claim. Let's see if it's true. Haven't faced it in years.

Study about Foreign Currency Markup (FCY) fee charged by Indian banks...It is applicable when foreign website charge in INR but their payment g/w is outside India like on paypal.

Ah. The same HDFC TnC page you guys were arguing in another post a while back. Do you wanna bet on it? If I pay in INR and only DCC is charged how much will you pay me?

Completely wrong.....Pay in USD to save money

Silly arguments.

In short DCC is applicable when charge and display currency are different so you are paying in INR but the POS currency or online currency of merchant is different so 5% is charged extra

Read this again:


There's no online currency, it's charged currency, display currency or product currency. All are different.

Also since you're claiming you got 5% charged from agoda. Show us the proof. I never got charged anything other than DCC when I paid in INR. Just on flat exchange rates.