Hotels want bank wire transfer

[kevinl4270]

I either get the hotel to accept paypal or a credit card deposit, or I find a hotel that will. My bank also charges $45 for an international fee and they use a brutal exchange rate much to their own advantage. I refuse to pay those kinds of fees just for the privilege spending my money at your resort.
I have run into many resorts and stores here in the Philippines that charge anywhere from 3-7% extra for using a credit card. They are charged that by the credit card companies and simply pass the cost along to the customer. I can understand that and I will pay it sometimes, depending on how hard it is to get cash in a particular area.
Best of luck Woodman you are going to love the diving here. I hope I never have to leave!

 

[WOODMAN]

Interac requires you to have a Canadian bank, which is a bit of a problem for us down here in the USA.

 

[Rhone Man]

It's common procedure at some places and in some parts of the world, so while you certainly want to check things out it's not necessarily "shady."

As others have said, wire payments in advance look really weird in the US and Europe, but in Asia it is certainly not uncommon. Especially in the less developed parts. Check that the hotel you are booking with is legit (usually a quick scan of the reviews on Tripadvisor should provide some comfort), and provided you tick that box, you should be fine.

 

[Centrals]

If the hotel wants deposit then I will find another one which does not require it. Piece of cake.
If you want private transfer then it is probably unavoidable because most of the operators if not all have their own transport. So you either pay up or use public.
If the dive operator/resort want it then it is slightly tricky. But unless you are travelling during Christmas and Easter, chances are you really do not need advance reservation(with deposit paid). However, some operators would insist so it is your choice.
Seek alternative if you are not happy.

 

[tridacna]

Just an FYI. $45 for an international wire transfer is pretty much the going rate. It's a major rip off and there's not much you can do about it. There was an article about exactly this in the New York Times last week.

http://dealbook.nytimes.com/2014/12/13/small-bank-in-kansas-is-a-financial-testing-ground/?_r=0

So...your options are somewhat limited. My advice? I have used worldfirst.com and they're 100% legit - charge you about $10 for a transfer. You have to jump through quite a few hoops to set up an account but works really well. I have never had an issue.

 

[WOODMAN]

Well, I tried to send a deposit via wire transfer from my financial people (my bank wouldn't even consider it) to the specified bank in PG that my dive operators use, and after much monkeying around in Manila (that's where the money got stuck..) the money bounced back to my Wells Fargo financial people, minus about $30 which was apparently eaten by someone during this little adventure. Wells Fargo suspected some sort of "fraudulent activity" in or around the bank in Manila (which is where it had to go through to reach the bank in PG), and they "strongly advised" me not to attempt that again. The operator in PG sighed and said this is not unheard of down there, and apparently the problem was that we tried to send the money as pesos, and the PG bank was set up to receive US dollars. Anyway, the operators agreed to make an exception in my case and not require a deposit, and I will just bring a stack of $100 bills and pay them all when I get there. Ah, the joys of international finance! One week to go, and now I have to go to my bank and get a bunch of nice clean, lightly used bills for them, as the Philippine money exchangers dislike anything other than relatively new money. Almost there! Woody

 

[Pullmyfinger]

I paid via wire transfer prior to my trip to Boracay last year.
No issues in my case. I'm told it's common with PI hotels/dive businesses.

 

[oleg_ch]

Sounds like the biggest nuisance here is the bank overcharging for the transfer or not even able to do it, rather than the hotel asking for it. OK, if big cities you should expect credit cards to be taken everywhere, but in some dive locations in Philippines it is (a little) too much to ask. My family would have missed a few great holidays if we refused to TT the deposits and even almost full advance payments.

 

[Stoo]

It's not uncommon for this request. As others have pointed out, some places simply don't use credit cards and even if they do, the fees to the hotel are significant... as in 5% in some cases.

The very real risk to the "guest" is that by sending a wire transfer, he is probably losing a huge amount of protection. Credit cards generally offer a process to have funds returned if, for example, the hotel goes under between the time the transfer was paid, and the guest arrives.

If I was the OP, I would be looking into travel insurance, and whether it specifically would cover this situation. If not, then he'll need to decide if there is any risk he isn't willing to accommodate.

With regards to other options, Western Union requires the recipient to go to a WU office, which might be a problem. PayPal may be an option, but again, there are fees.

 

[FT]

Woodman, we all hope you have a wonderful time and report back promptly. The headaches will melt away once you're underwater.

PS make sure the bills are recent as well. Post-2006 was the cutoff a couple of years ago.