Cuba shafting VISA users with surcharge

BIG NOTE: This message does *not* concern the use (or rather, non-use) of
VISA cards drawn on american banks. That problem is well known. This
different. We had an unsatisfactory situation in Cuba with VISA cards drawn
on Canadian banks.

My wife and I spent a week in Cuba, beginning November 24. This was our
ninth time to the island, and fifth time to the Oriente province. We spent
five days at the Brisas Sierra Mar resort, then spent the last two days in
Santiago de Cuba.

We wanted to purchase several excursions offered by the resort. The tour rep
said we could pay for them with credit cards. We have done this multiple
times before, and have never had a problem paying with VISA. It can take a
bit longer due to phone problems getting a confirmation number, but
everything is slow in Cuba, so what the hell. We have always paid for meals
at hotels with visa. This is part of the convenience.

This time, when we gave the rep our card, he said that there is an 11%
surcharge to be added to the transaction. The reason he gave is that the
Cuban government now wants to discourage use of american dollars, and so
they have imposed a 10% penalty on their use. Since the Cuban government
actually conducts all their international transactions in american dollars
anyway, they decided to hit credit card transactions as well. This policy
was enacted November 24, the day we left. No one had ever heard of it before
that.

Please don't bother replying to point out the lack of logic to the
above-mentioned explanation. In terms of a transaction involving the VISA
company, the cuban business, and the Canadian bank, the explanation
*doesn't* make any sense. But that's how it was explained to me at the
resort. A very similar explanation was given to me by a clerk at the front
desk of the Casa Granda hotel in Santiago's main square.

This new "policy" also contradicts resolution No. 80/2004 concerning the 10%
surcharge on American dollars used in Cuba. but I guess that was last year.

The bottom line is, bring lots of cash unless you're willing to bite that
11% surcharge on credit card purchases.

Oh yeah, the weather was great.

Typically, if you work out the price you would have paid cash, converting
the cuban peso to Canadian, and then compare it to what's on your credit
card bill, converting the US$ charge to Canadian, people find that there
isn't really a difference.

In short, the 11% isn't really a surcharge, it just represents the fact that
they can't put a Cuban peso charge on a credit card (since there is no peso
outside of Cuba), so they have to convert to US first. That's why a 50 peso
excursion shows up as a $55.50US charge on your bill



"James T Duhaime" <jduhaime1452@rogers.com> wrote in message
news:vYWdnYk6yruCRwPeRVn-og@rogers.com...
> BIG NOTE: This message does *not* concern the use (or rather, non-use) of
> VISA cards drawn on american banks. That problem is well known. This
> different. We had an unsatisfactory situation in Cuba with VISA cards
> drawn on Canadian banks.
>
> My wife and I spent a week in Cuba, beginning November 24. This was our
> ninth time to the island, and fifth time to the Oriente province. We spent
> five days at the Brisas Sierra Mar resort, then spent the last two days in
> Santiago de Cuba.
>
> We wanted to purchase several excursions offered by the resort. The tour
> rep said we could pay for them with credit cards. We have done this
> multiple times before, and have never had a problem paying with VISA. It
> can take a bit longer due to phone problems getting a confirmation number,
> but everything is slow in Cuba, so what the hell. We have always paid for
> meals at hotels with visa. This is part of the convenience.
>
> This time, when we gave the rep our card, he said that there is an 11%
> surcharge to be added to the transaction. The reason he gave is that the
> Cuban government now wants to discourage use of american dollars, and so
> they have imposed a 10% penalty on their use. Since the Cuban government
> actually conducts all their international transactions in american dollars
> anyway, they decided to hit credit card transactions as well. This policy
> was enacted November 24, the day we left. No one had ever heard of it
> before that.
>
> Please don't bother replying to point out the lack of logic to the
> above-mentioned explanation. In terms of a transaction involving the VISA
> company, the cuban business, and the Canadian bank, the explanation
> *doesn't* make any sense. But that's how it was explained to me at the
> resort. A very similar explanation was given to me by a clerk at the front
> desk of the Casa Granda hotel in Santiago's main square.
>
> This new "policy" also contradicts resolution No. 80/2004 concerning the
> 10% surcharge on American dollars used in Cuba. but I guess that was last
> year.
>
> The bottom line is, bring lots of cash unless you're willing to bite that
> 11% surcharge on credit card purchases.
>
> Oh yeah, the weather was great.
>
>

On Tue, 13 Dec 2005 00:40:09 -0500, "James T Duhaime"
<jduhaime1452@rogers.com> wrote:

>BIG NOTE: This message does *not* concern the use (or rather, non-use) of
>VISA cards drawn on american banks. That problem is well known. This
>different. We had an unsatisfactory situation in Cuba with VISA cards drawn
>on Canadian banks.
>
>My wife and I spent a week in Cuba, beginning November 24. This was our
>ninth time to the island, and fifth time to the Oriente province. We spent
>five days at the Brisas Sierra Mar resort, then spent the last two days in
>Santiago de Cuba.
>
>We wanted to purchase several excursions offered by the resort. The tour rep
>said we could pay for them with credit cards. We have done this multiple
>times before, and have never had a problem paying with VISA. It can take a
>bit longer due to phone problems getting a confirmation number, but
>everything is slow in Cuba, so what the hell. We have always paid for meals
>at hotels with visa. This is part of the convenience.
>
>This time, when we gave the rep our card, he said that there is an 11%
>surcharge to be added to the transaction.

damn James...who are you dealing with there...Communists or something?


The reason he gave is that the >Cuban government now wants to
discourage use of american dollars, and so they have imposed a 10%
penalty on their use. Since the Cuban government actually conducts all
their international transactions in american dollars anyway, they
decided to hit credit card transactions as well. This policy was
enacted November 24, the day we left. No one had ever heard of it
before that. Please don't bother replying to point out the lack of
logic to the above-mentioned explanation. In terms of a transaction
involving the VISA company, the cuban business, and the Canadian bank,
the explanation *doesn't* make any sense. But that's how it was
explained to me at the resort. A very similar explanation was given to
me by a clerk at the front desk of the Casa Granda hotel in Santiago's
main square. This new "policy" also contradicts resolution No. 80/2004
concerning the 10% surcharge on American dollars used in Cuba. but I
guess that was last year. The bottom line is, bring lots of cash
unless you're willing to bite that 11% surcharge on credit card
purchases. Oh yeah, the weather was great.


other than the VISA problem, did you enjoy real luxury for alot less
pesos?

Bill