Travelling to NZ - Overseas Transaction Fees on Pre-Auth Hold Amounts

ashtdp on 05/05/2023 - 15:17
Last edited 05/05/2023 - 15:26

Hi Everyone,

Background:

I am doing my first Overseas trip (to Queenstown, NZ) and have some doubts about using Credit Card for Pre-Auth hold transactions and Overseas Transaction fees.

I am going to hire a rental car in Queenstown, NZ and the rental company (Mode) is going to hold $3000 NZD until the vehicle is returned and assessed. Also, I will be staying in 3-4 different hotels during the period and I imagine the hotels also want to Pre-Auth hold some amount. Most probably all these entities would accept only Credit Cards for Pre-Auth. I have only St.George Amplify Platinum Credit Card which attracts 3% O/S transaction fees.

Question:

When I use Credit Card for the pre-Auth hold and the entity releases the hold when the hotel vacated/rental car returned, does this transaction still attract the 3% fees?

I will be travelling in 2 weeks, so don't have enough time to apply for new Credit Card like ING or HSBC to avoid transaction fees.

I have ING Debit card which I will be using for cash withdrawals and transactions without foreign transaction fees.

I have called St.George customer care to get clarification but the executive has no clue and blabbered something. The executive didn't even know that Overseas transaction fees and Currency conversion exchange rate spread are two different things and I had to explain that O/S fees is fixed fee and exchange rate and spread is variable based on currency fluctuations and spot rate.

I am hoping anyone from this forum has first hand experience and can clarify my doubts.

PS: I wanted to add "Please" somewhere to make my request sound polite but didn't find any right place to do it, so "please"….

Travel New Zealand Oceania

Comments

  • GG57 on 05/05/2023 - 15:42

    I don't know, but it really isn't something you can change now. You will just have to go with it.

  • Ocker on 05/05/2023 - 15:45
    +1

    The pre-authorisation will drop off once the actual charge is made and the latter will attract the international transaction fee, not the pre-authorisation amount.

    • ashtdp on 05/05/2023 - 15:56

      Thanks.

      I am going to prepay for accommodation and Car Rental in AUD (Booking via Expedia AU) with same Credit Card or ING Debit card which will save me from transaction fees on the actual payments. Was going to strictly use StGeorge CC only for Pre-Auth since CC is the only option the hotels and Car Rentals accept for Pre-Auth hold.

      • Shadowsfury on 05/05/2023 - 22:16

        Don't assume that just because something is charging you in AUD that it won't attract a forex fee - better to pay with a no forex fee card to be safe.

        I've often done what you do though - its only authorisation so you won't (ultimately) be stung with the 3% fee.

        • ashtdp on 05/05/2023 - 23:33

          Thanks.

          I have once made an overseas hotel booking from Expesia Australia using Australia NAB CC in my home country and I don’t remember it triggering any overseas transaction fees. Hopefully it didn’t change now.

          However, I have just now completed hotel bookings using the Vanilla Visa GCs bought from recent Coles 10% discount sale(7.3% fees after Activation fees) and booked via today’s Cashrewards expedia 14% cashback promo. Even if Visa charges their usual 2.5-3%, it still is most economical way of booking hotels in what I can do.

          Thanks for confirming that the Pre-Auth hold does cost foreign transaction fees

  • djkelly69 on 05/05/2023 - 16:25

    FYI 2 weeks should be enough time to get a credit card if you get moving now.

  • thriver on 06/05/2023 - 00:36

    I was same to use debit card for my car rental booking with go rentals. If you can use debit too, then use your ING. But if needed open amount with Revolut or Ubabk. Can get virtual debit card straightaway.

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