Going Abroad? You Could Be Hit With A Double Whammy Hangover Of Currency Fees And Sales Taxes

Mr. and Mrs. Edge just came back from an awesome trip to British Columbia.  It's beautiful, trust me. While I was prepared for the potential currency exchange fees, and used a credit card that does not charge them, I was hit by the sticker shock of Canada's sales taxes: Goods and Services Tax (GST), Provincial Sales Tax (PST), Harmonized Sales Tax (HST), and Municipal and Regional District Tax (MRDT).  Yikes!  it's a wonder more people don't move, must be the "free" health care.  Worst of all, these sales taxes aren't refundable, according to my chat with the Canada Revenue Service yesterday. Only in certain circumstances, listed on their website, they are at least partially refundable.  But since we weren't exporting pieces of art, we got had  

O' Canada!  OMG taxes!

While you should definitely still travel to Canada, here's what you can do to help lessen some of the other bite that you might experience.  If you don't have one already, apply for a credit card which does not charge currency exchange fees.  What I mean by this is if you use a credit card in a foreign country, and it converts the transaction to the local currency, you might be assessed with a ~2.7% fee.  Think of it as yet another tax.

And, if you don't have a bank that refunds ATM fees, expect to be whacked by those, too.  Canada is pretty advanced when it comes to credit card use.  And, unlike the U.S., expect to be presented with a mobile credit card machine for you to swipe.  Kind of odd, but you get used to it.  But, like the U.S., you will still find the odd Mom and Pop shop that won't take them.  Search for a bank that does not have "foreign" ATM fees here.  This strategy will also work in the U.S., too.

-- The Edge

Traveling Abroad? Don't Get Stuck With Currency Fees

Traveling abroad for work or pleasure can be a lot of fun.  Depending on where you go, it can be quite a bit cheaper than an average day in the U.S.  But, what you might not have thought about if you don't plan on converting to local currency is what your credit or debit card might charge you extra for using it abroad.  These are called foreign transaction fees.

Foreign transaction fees are what banks will charge a customer, around 2-5%, for converting into the local currency.  Ouch.  Suddenly, that hotel room is not quite a bargain.  

But, you can fight back.  Many credit cards waive foreign transaction fees, but you have to look closely.  For example, my United MileagePlus Explorer Card charges these fees, while my Chase Hyatt Card does not.  For a list of cards that do not charge fees, check out this site.

--The Edge

Trip report: Megabus from New York City to Washington, DC

I finally took the plunge and took the bus from New York to Washington a few weeks ago.  Since I had gotten locked out of using Amtrak Guest Rewards points due to the Easter weekend (see post about blackout dates), I decided that it might be time to try out the bus.  After all, the price difference for the two of us was about $170 more for the train, even with a AAA discount, vs. only $50 for the both of us on Megabus.  On price alone, of course, that's unbeatable, but there are other factors to consider, such as time and comfort.  The train takes about 3 hours, 20 minutes, and the bus, considering traffic involved, well over 4 hours.  But, let's just say the hype about the bus that got me excited: free wi-fi, electric outlets, and a modern coach configuration, well, didn't live up.


I already knew that the bus would be about an hour longer than the train, so, that wasn't necessarily a complaint of mine.  However, what was for me, and everyone else, was that the air conditioning never worked the entire time.  When we left NYC, it was high 70s, and, anyone who knows the East Coast, 70s means a heck of a lot warmer than a California 70.  Here we go, 4 + hours of no air.


It wasn't long before a few people started complaining.  The driver acknowledged that the problem was indeed in fact a broken air conditioner.  I don't know how he didn't realize that earlier in the day, as our bus left NYC at 3:00pm.  But, oh well, at least there's free wi-fi, right?  Wrong.  Probably due to the server getting fried in the heat, the wi-fi didn't work either.


Keep this in mind that this is one person's opinion, but unless you really need to save some bucks, I would avoid taking the bus on more than a two hour trip.  I won't necessarily single out Megabus for being a huge let down, but I will never, ever ride them, or the bus, if avoidable, again.  Fortunately, there are other options for bus fans.  A site called Bus Junction can help you pick. 

If convinced by this account, run, don't walk to the train station.  With careful planning, and I will be glad to offer my advice and assistance in getting you a good deal, take the train.  It's comfortable, cool, and there's food available whenever you want it.  (I was surprised to learn that Megabus, at least, doesn't allow passengers to eat on board).  I can refer you to Amtrak Guest Rewards, their loyalty program, and you can earn points for buying train tickets and other partner merchandise.  Send me an email and I can get you a jump start on your point balance. 

As a closure, I did write Megabus a letter and we'll see how they respond.

Reader question

Thanks to reader Doug for asking a great question:

Dear Edge,

How do I get Priceline to bid on a specific hotel on a beach, and not just on a range of hotels and then I end up with one I didn't want?
Answer:

Priceline is an awesome tool for saving substantial money on all of your travel needs: hotels, rental cars, and airfare.  While there ways to improve your chances of getting a successful bid for a hotel, there is still some chance that you will get a hotel that you didn't quite want.  So first, be flexible.

Strategy 1

Generally, when I use Priceline, I start with a 4-5 star search, but using Priceline's normal booking method, meaning, you see everything before you buy, not afterwards.  I get a feel for the hotels they are offering, neighborhoods, and price.  If the hotel I want is not listed, Priceline may not have a relationship with it.  But, if you are flexible, as I am, then this what you should do.  Using the hotel rate listed on Priceline, go ahead and low ball that by 50-60%.  Priceline claims "to save you 50% or more," thus that should be your goal.  Bid away.  If unsuccessful, you have a few options: change the star quality, neighborhood, or wait 24 hours and re-do it.  During that time, do more homework to see if your bid is unreasonable.

Strategy 2

This can be done in conjunction with Strategy 1 as well.  Visit biddingfortravel.com and see others' successful bids on Priceline rooms to gauge how much you need to bid.  For example, if you want to stay in San Francisco at a 4 star hotel, you can see what others bid using that criteria within a certain time period.  That way you can also get an idea of what the hotel might be.  Bid away. 

In the end, if you really want to stay at that beach hotel for less, then using AAA, or a similar discount program, will likely be your best options.  As I discussed elsewhere, your credit card provider may offer a substantial discount as well.  If still unsatisfied, call the hotel directly and see if they have flexibility in their rate.  If you plan on staying more than a couple of days, there might be some room to negotiate, especially if you are a member of the loyalty program.

Keep the questions coming.  Email them, or leave a comment below.