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URGENT QUESTION: Is it safe to pay a foreign tour operator via wire transfer?
Hi folks,
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
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
Views: 36
Replies to This Discussion
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Permalink Reply by Nayaz Noor on -
Hi Max,
As a tour operator myself we constantly wire money to our suppliers. It is safe and less expensive than using credit cards. However, the client must verify the antecedents of the tour operator by verifying if they are part of any association approved by South African Tourism. They could also verify the same with the SA tourism office in their country of residence.
we deal a lot with South Africa and perhaps if you let me know the name of the operator, i could maybe let you know too.
Regards
Nayaz Noor
CEO
Safir Tours
India -
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Permalink Reply by Peter WALTER on -
There should be not any problem to use wire transfer (we do that all the time). Especially to well known Tour Operator. But, if he wants to be on safe side, he may look into purchasing Travel Insurance. We would recommend TRAVELEX (www.travelexinsurance.com).
Peter
Linconnection USA / Czech Tours & Travel
www.czechtours.cz -
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Permalink Reply by John A Tavera on -
Hello Max,
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 -
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Permalink Reply by Fatema K. Zavery on -
Hey Max. I am the Managing Director of Zed Safaris Ltd, located in Tanzania, East Africa. Fraud companies are all over the world. we deal with a lot of overseas tour operators that we have not even met personally but the key-point is thoroughly researching on the companies before you do business with them, check reviews from other travellers who have used their services.
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 -
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Permalink Reply by Aaltje E. Van Zoelen on -
Our company does business in East Russia, notoriously not a safe place relative to money matters. However, I pay al of our funds to them by wire transfer. Using a credit card is actually less safe than dong it this way. Aaltje van Zoelen, World Wise Ecotourism Network
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Permalink Reply by John Lamb on -
Hello and thanks for all of the helpful comments. I am Max's friend and the name of the South African safari company is &Beyond, which seems very reputable with 40 lodges throughout Africa and India. I assume it will be fine. Regards.
John Lamb
John Lamb said:Nayaz Noor said:Hi Max,
As a tour operator myself we constantly wire money to our suppliers. It is safe and less expensive than using credit cards. However, the client must verify the antecedents of the tour operator by verifying if they are part of any association approved by South African Tourism. They could also verify the same with the SA tourism office in their country of residence.
we deal a lot with South Africa and perhaps if you let me know the name of the operator, i could maybe let you know too.
Regards
Nayaz Noor
CEO
Safir Tours
India -
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Permalink Reply by Fatema K. Zavery on
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If the company you are dealing with is "& Beyond", rest assured, your money is in safe hands :-)
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Permalink Reply by Max Pesling on -
Thank you all for all the great help you've offered my good friend John. I'm pretty impressed by the caliber of tour operators in this group, and how we got answers all the way from North Carolina to India to Tanzania!!! Call it "the power of Tripatini" :-)
Happy Wednesday, everybody!
Max -
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Permalink Reply by Nayaz Noor on
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Can't go wrong with & "Beyond"
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Permalink Reply by Allan Paul Theron on -
I am a tour operator based in Cape Town, South Africa. Our banks charge us quite high banking fees whether we like it or not. As for & Beyond, tey are a reputable company and I would have no problem in dealing with them.
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Permalink Reply by Vanessa Wallace-Kaplan on -
Hi Max
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 -
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