Cash Payments? Tours in Peru
Dec 13th, 2008 | 04:15 PM
#1
Original Poster
Joined: May 2005
Posts: 41
Likes: 0
Cash Payments? Tours in Peru
Hi All!
I have something I am curious about and I want to make sure our tour operator is on the up and up.
Upon us stating our interest in scaling back some ativities to bring the price down, the tour operator replied with some options to cut back and also applied several discounts as well. One option they are using to give us a discount is to have us pay a portion of our total cost in CASH when we get into Peru. They say this will allow them to save in "transfer fees", and they can then in turn pass a portion of this savings on to us. We will be saving quite a bit of money on our tour if we pay them a pretty large portion in cash upon our arrival.
This seems it could make sense as I am sure credit card companies take a large percentage of our payment, and even more because of the currency conversion. That said, I am nervous whenever someone asks me to bring such a large amount of cash anywhere.
Any thoughts and especially experiences would be GREATLY appreciated! Thanks in advance!
I have something I am curious about and I want to make sure our tour operator is on the up and up.
Upon us stating our interest in scaling back some ativities to bring the price down, the tour operator replied with some options to cut back and also applied several discounts as well. One option they are using to give us a discount is to have us pay a portion of our total cost in CASH when we get into Peru. They say this will allow them to save in "transfer fees", and they can then in turn pass a portion of this savings on to us. We will be saving quite a bit of money on our tour if we pay them a pretty large portion in cash upon our arrival.
This seems it could make sense as I am sure credit card companies take a large percentage of our payment, and even more because of the currency conversion. That said, I am nervous whenever someone asks me to bring such a large amount of cash anywhere.
Any thoughts and especially experiences would be GREATLY appreciated! Thanks in advance!
Dec 13th, 2008 | 06:54 PM
#2
Joined: May 2003
Posts: 4,070
Likes: 0
For the business, processing fees for credit cards take a pretty hefty chunk out of any payment it receives. Most small- to medium-size businesses I know in Latin America would much rather recieve cash from the customer than take payment by credit card for that reason. If you want a discount, you won't get it paying by credit card.
Only you can answer the question about how much cash you feel comfortable carrying, however. If something goes wrong with the services the tour operator provides, you have no ability to file a complaint with the credit card company if you've paid in cash.
What's the company?
Only you can answer the question about how much cash you feel comfortable carrying, however. If something goes wrong with the services the tour operator provides, you have no ability to file a complaint with the credit card company if you've paid in cash.
What's the company?
Dec 14th, 2008 | 02:21 AM
#3
Joined: May 2004
Posts: 9,773
Likes: 0
We have been travelling for 5 months in SA including Peru. We have paid cash on a number of occasions including our months apartment rental here in BA (plus deposit) and the Lares trek in Peru. On both occasions we have had no problems, but on those occasions we checked out the organsiations concerned. One was highly recommended here and teh other was recommended by the South America Explorers club www.saexplorers.org. SA Explores have clubhouses in both Lima and Cuzco and hold lots of information on tour operators and "warts and all" trip reports from travellers. It may be worth your while joining at $40 pp.We found the website invaluable in pre planning and teh Cuszco clubhouse was very helpful.
It is however aimed more at the backpacker than luxury traveller. The membership card will provide a lot of discounts at restarants tour etc. we found that it paid for itself many times over during or 6 weeks in Peru.
The other thing I would mention is that Peruvian cas machines do dispense US$ as well as soles but I cant remember what the daily limit is.
Jeff CR makes a very valid point re the help that a cc company can propvide in the event of difficulties although this is not always as easy as one would think. I had some problems with a hotel in Thailand charging for nights i did not stay. At first the cc company refused to help although after much badgering and complaining over several month they did relent and refund the charge.
It is however aimed more at the backpacker than luxury traveller. The membership card will provide a lot of discounts at restarants tour etc. we found that it paid for itself many times over during or 6 weeks in Peru.
The other thing I would mention is that Peruvian cas machines do dispense US$ as well as soles but I cant remember what the daily limit is.
Jeff CR makes a very valid point re the help that a cc company can propvide in the event of difficulties although this is not always as easy as one would think. I had some problems with a hotel in Thailand charging for nights i did not stay. At first the cc company refused to help although after much badgering and complaining over several month they did relent and refund the charge.
Dec 14th, 2008 | 09:00 AM
#4
Joined: Oct 2007
Posts: 179
Likes: 0
Hello samsaba:
Paying in advance is always a risk. Even paying later can also be risky. If you are not satisfied with the quality, you could still be liable for the payment, at least in Canada that is the case.
As an operator of small business most of my working life, we took credit card payments and it cost us 2% of the sale.
While 2% may not sound like a lot, that money came off the top after we paid for our inventory, labour and all other operating costs. Therefore, to me, that 2% came out of my profit.
I read many years ago that a well run business could expect a 10% return. We were never such smart operators. I found the mhe math to be pretty simple. 2% out of 10 is 1/5th of my profit. That was a large cost.
My options were to either charge my clients more, not take creidt cards or carry the credit myself and at times we did.
I can understand small business, particularly in a competative market, to not want credit cards and even to share some of that 2% if they can get paid in cash. Cash in advance is even better. Bills can be paid early taking advantage of discounts and the sale is a sure thing.
That is not the end of merchant credit card problems for small business.
A hotelier in Argentina once explained to me that it took up to two months for them to get paid from the credit card company. That business was, in effect, financing the bank. What else is new? Don't expect better from the credit card company who mostly charge 18% and more to carry the customer's [buyer] credit.
More problems. One travel agency wrote on a chat thread that they had a fee charged back due to a customer complaint. Warranted or not, that means that the travel agency had paid their hotel or wholesaler or at least had to pay them some time later. But that payment by the client was later reversed by the credit card company! That could be much later.
I can not say if this was true or not, if it was warrented or not but I can say that one time when I was working in the arctic, an AMEX charge slip of mine was altered by a waiter by only one dollar. The waiter decided to increaase the tip. I keep all my sales vouchers and sent AMEX a photocopy of my voucher with the original charge. It was reveresed. No doubt it took more time for the merchant to learn of that charge back meanwhile the waiter could have been paid and gone by then. How many more dollars was that merchant out because of that same employee?
Why get so excited over one dollar? Well, at that time I worked as a fraud investigator and who would want to hire such a service if that service themselved got ripped off?
The bottom line is that I do not blame a merchant for wanting or even insisting on cash. Even then the cash itself could be counterfeit.
When you know more than one side of a situation you should be in a better place to deal.
How about agreeing on cash at the end of the tour, that is if no hotel or other such service had to be prepaid by the agency?
Woodie
Paying in advance is always a risk. Even paying later can also be risky. If you are not satisfied with the quality, you could still be liable for the payment, at least in Canada that is the case.
As an operator of small business most of my working life, we took credit card payments and it cost us 2% of the sale.
While 2% may not sound like a lot, that money came off the top after we paid for our inventory, labour and all other operating costs. Therefore, to me, that 2% came out of my profit.
I read many years ago that a well run business could expect a 10% return. We were never such smart operators. I found the mhe math to be pretty simple. 2% out of 10 is 1/5th of my profit. That was a large cost.
My options were to either charge my clients more, not take creidt cards or carry the credit myself and at times we did.
I can understand small business, particularly in a competative market, to not want credit cards and even to share some of that 2% if they can get paid in cash. Cash in advance is even better. Bills can be paid early taking advantage of discounts and the sale is a sure thing.
That is not the end of merchant credit card problems for small business.
A hotelier in Argentina once explained to me that it took up to two months for them to get paid from the credit card company. That business was, in effect, financing the bank. What else is new? Don't expect better from the credit card company who mostly charge 18% and more to carry the customer's [buyer] credit.
More problems. One travel agency wrote on a chat thread that they had a fee charged back due to a customer complaint. Warranted or not, that means that the travel agency had paid their hotel or wholesaler or at least had to pay them some time later. But that payment by the client was later reversed by the credit card company! That could be much later.
I can not say if this was true or not, if it was warrented or not but I can say that one time when I was working in the arctic, an AMEX charge slip of mine was altered by a waiter by only one dollar. The waiter decided to increaase the tip. I keep all my sales vouchers and sent AMEX a photocopy of my voucher with the original charge. It was reveresed. No doubt it took more time for the merchant to learn of that charge back meanwhile the waiter could have been paid and gone by then. How many more dollars was that merchant out because of that same employee?
Why get so excited over one dollar? Well, at that time I worked as a fraud investigator and who would want to hire such a service if that service themselved got ripped off?
The bottom line is that I do not blame a merchant for wanting or even insisting on cash. Even then the cash itself could be counterfeit.
When you know more than one side of a situation you should be in a better place to deal.
How about agreeing on cash at the end of the tour, that is if no hotel or other such service had to be prepaid by the agency?
Woodie
Dec 15th, 2008 | 05:35 AM
#7
Original Poster
Joined: May 2005
Posts: 41
Likes: 0
Interesting! The responses have pretty much run the gammit here. Our perspecitive tour operator has gotten great reviews (on trip advisor anyhow...nothing here), and they have been very professional and prompt in all communication. That of course alone does not mean this is a good situation so that is why i wanted to check with all of you. It sounds like so far it is quite reasonable for them to offer a discount for a portion being paid in cash from what I hear. It is only about 1/6 of the overall cost so we will still have the ability to recover the majority of our cost is something goes bad. Based on the overall things I am hearing and taking into account what I have read about the tour company, I am pretty sure I now feel comfortable with the whole deal. I like what georgewoodie said about paying them cash at the end, but I don't really want to carry all that cash with me DURING the trip. Perhaps I will use an ATM to get the money at the back end.
Anyhow, great feedback everyone! I really appreciate it all. I am certainly going to be checking to see if there is any more thoughts or experiences.
Anyhow, great feedback everyone! I really appreciate it all. I am certainly going to be checking to see if there is any more thoughts or experiences.
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Mar 1st, 2009 | 07:15 PM
#9
Original Poster
Joined: May 2005
Posts: 41
Likes: 0
Back from the trip and all went well. As you know I was a little leary about the cash payment but we had no issues there. We had good reviews about the tour company ahead of time and everything went perfectly fine on the trip. I wouldn't do the cash payment thing with every tour company, but it did allow our tour company to offer us a lower price and I can see that being a realistic strategy for most of these companies in this economy.
Thanks all!
Thanks all!
Mar 20th, 2009 | 05:59 PM
#11
Joined: May 2007
Posts: 1,687
Likes: 0
When we were in Peru we booked Qente. They are in Cusco. We arranged a private short Inca hike/hotel/guide and it worked out great. Then we decided to book a bus trip to Puno to go to Lake Titicaca and booked them again when we were there. I used Ambar but I dont know if she is still there.
Qente.com
They did everything they said they would and the prices were good too.
Qente.com
They did everything they said they would and the prices were good too.
