A good friend of mine who's going to Africa on safari asked me a question tonight that stumped me, even as a part-time travel writer. Basically, he and his partner are booking a safari with a well-known South African outfit. They would like to pay with a credit card, but the company offers a 3% discount for cash, which is another way of saying they charge 3% for paying with a card (I thought banks didn't allow merchants to do this???).
On top of this, because they're buying directly from a foreign vendor rather than a US travel agent, they are hit with a 2.7% charge for the currency conversion.
So, between one thing and the other, if they use a credit card, they will pay 5.7% more than if they send a wire transfer, which will cost them a flat $30.
Obviously, that's much less than 5.7% of an expensive trip; but is it safe? My thought is that they are not protected if the tour operator goes out of business or fails to deliver in some way. If they paid cash, there's no further recourse.
What do you all think?
Thanks!
Max
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Replies
Fez Travel is a Turkey based tour operator and I know our clients have the same concerns. We dont currently charge extra for credit card payments but it is common to do so in Turkey, throughout Europe and many other countries as the merchant fees charged by banks can be very high.
Re safety of a wire transfer, if the company is licensed and registered by their national tourism association like we are with TURSAB here in Turkey, you may find some protection is provided that way.
Though to be sure i would suggest that the travellers have adequate travel insurance to cover them in the event of any sort of problem occuring with their travel arrangements.
Regards
Vanessa
Fez Travel
Happy Wednesday, everybody!
Max
John Lamb
John Lamb said:
With Warm Regards,
Fatema K. Zavery,
Zed Safaris Ltd,
Dar es Salaam.
Tel: +255 22 2138056
Cell: +255 71 3409 490
Email: fatema@zedsafaris.com
URL: http://www.zedsafaris..com/
Skype: Zedsafaris
Like Nayaz, I am also a tour operator, and wire transfers to vendors overseas is the preferred form of payment, for the exact reasons you gave, it's less expensive than paying with a credit card. We do it weekly for our vendors in Latin America. Though there maybe laws in the US preventing companies from charging more for credit card payents, or discounting cash/check payments, when dealing with companies based in other countries those laws do not apply. I can't tell you for sure whether they are suppose to, but in my own experience it's common practice to have a surcharge applied by the receiving party when they are located outside the US. You may also be charged a fee by the US bank that you have the card with for processing an international charge. This may be the conversion fee you mentioned, but check with bank that issued the card you plan on using if you haven't already.
If you decide to send a wire though, take the advice of Nayaz & Walter, be sure to check that the company you are sending these funds to is legitimate and in good standing with the local or national tourism association, and travel insurance through a reputable company would be a good idea. Travelex is very good and has offices in most major airports. Just make sure that the insurance policy you purchase covers you in the event that the company is not legit. Remember, sending a wire is just like handing over cash, once they have it, it can be almost impossible to get it back if anything goes wrong. Your recourse with a credit card company is much greater, but as you see it comes with a fee.
Do your homework on the tour operator in South Africa. Like Nayaz, I can probably find out something if you can supply the name of the company you are dealing with. I'ld be happy to help!
Good luck!
John Tavera
President/Marnella Tours
North Carolina/USA
Peter
Linconnection USA / Czech Tours & Travel
www.czechtours.cz
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