HOW TO AVOID OVERPAYING FOR A TRAVEL VISA ON AN AIRLINE WEBSITE

Jay Raman says booking his family's recent flight to Auckland, New Zealand, on Delta Air Lines was a snap. He was particularly impressed by how easy it was to apply for the required New Zealand Electronic Travel Authority visas directly through a portal on the airline's website.

That portal took Raman from the Delta website to Sherpa, a third-party travel visa processor. After entering the details of each of his five family members and paying a total of $532.50, he soon had those electronic travel visas. How convenient, he thought.

However, a few days later, as he continued his travel planning, budget-minded Raman got an unpleasant surprise. He learned that the New Zealand government charges U.S citizens just 17 New Zealand dollars ($10) for NZeTAs via a free app.

Since that day, he's been trying to find out why his family was charged 10 times that amount.

With neither Delta Air Lines nor Sherpa able to explain the highly inflated cost of those NZeTAs, Raman turned to TPG. He hoped we could solve this mystery and get a refund for the overcharge.

So, what really happened?

Planning a trip of a lifetime to New Zealand

Last fall, Raman says that a sale on the Delta website led his family to finally take a trip to New Zealand. It was a destination they had wanted to visit for some time, and the cost of the tickets was within their budget for the upcoming Christmas holiday.

After purchasing the tickets, he was directed to FlyReady, a tool on the Delta Air Lines site designed to help customers prepare for their international flights by checking their travel documents. Those checks are done by third-party companies. However, Raman didn't know that.

He says the look and feel of the page gave him the impression that the information was being provided by Delta.

"I added our passport information and then there was a button to check if we needed visas to travel," he said. "Upon clicking through to that page which has a header of 'Sherpa + Delta' with the official Delta logo, the message informed me that it was $106.50 for each visa. Given the look of this website and seeing the Delta logo, I presumed that everything was above board and no price gouging would occur.

As a person not versed in visa requirements, I trusted this to be what it costs, and purchased five visas for my party at the total cost of $532.50."

But as he continued planning his family's once-in-a-lifetime trip, he was shocked to discover just how much money he could have saved had he applied for those visas without the assistance of Sherpa and became convinced that he had, in fact, been a victim of price gouging.

"When I looked at the New Zealand government's website, I saw that I could have applied for our travel visas directly at a total cost of around $50!" Raman said. "I felt bamboozled and went straight to Delta Air Lines to complain."

Asking Delta Air Lines why the travel visas were so expensive

Opening up the chat feature on the Delta Air Lines website, Raman explained the situation to the agent.

"Why would Delta Air Lines lead me to a company that would charge its customers [such an inflated cost] for a simple travel visa?" he asked.

While sympathetic to his frustration, the Delta agent reiterated that using Sherpa is optional. They told Raman that he should have read through the terms and conditions and decided based on that information.

"I can sense your frustration, Jay. I really wish I could do anything [sic] with your visa and Sherpa related issue," the agent typed. "I have checked [the Delta Air Lines site] and can see that under the Sherpa Product Terms and Conditions 1st point stating 'by accessing Sherpa, you acknowledge there [sic] terms and conditions and agree to be bound by them.'"

The chat transcript that Raman provided to TPG continued to go round and round in a similar fashion. As in other cases we've tackled, the agent's responses had all the telltale signs of being artificial intelligence-generated. The agent didn't ever address Raman's actual question about the overpriced NZeTAs sold to his family via the Delta Air Lines website or its partner. Rather, the agent simply continued to repeat the same information in slightly different ways again and again.

The chat did nothing but cause Raman additional frustration. He had hoped that Delta would agree that the exorbitant upcharge should be refunded.

Realizing he was getting nowhere by continuing to chat with the airline, Raman emailed Sherpa for an explanation but received no response.

That's when he decided to ask TPG for help.

Asking TPG to unravel this travel visa problem

When I received Raman's request for help, it was only a few weeks before his family's much-anticipated trip, but his anger over the travel visa situation was growing by the day.

"I thought about filing a credit card dispute against Sherpa for the overcharge," Raman told me.

Luckily, he did not since that would have been a mistake that could have caused an even worse outcome.

The Fair Credit Billing Act allows credit card users to dispute billing errors and fraudulent charges. Consumers should never file a chargeback for things they willingly purchased, including travel visas.

In Raman's case, he would have had very little chance of winning a credit card dispute because he authorized the purchase.

The terms and conditions of using Sherpa to process the family's travel visas were available on the pages in front of him as he clicked his way through the FlyReady site. Unfortunately, he failed to read those details. Filing a credit card dispute for those charges would have been a misuse of the chargeback process.

Worse, it is very likely that all of the family's travel visas would have been canceled as a result of filing the dispute. And because the purchase was made through Delta and in conjunction with his airline tickets, even the flight reservations could have been jeopardized by a chargeback.

Although a credit card dispute wasn't a way for Raman to get the resolution he was hoping for, his documents showed that he had been charged an obviously inflated cost for those NZeTAs. And there were more peculiarities.

Travel visas processed directly through the New Zealand government's app cost just NZ$17 ($10), while you can apply online through its website for NZ$23 ($14).

At the same time as the visas are processed, travelers must also pay a Conservation and Tourism Levy of NZ$35 ($21). The total cost: NZ$52 (about $31). For Raman's family of five, the required visas and other fees would have been just $155.

When purchased directly through the Sherpa website, the same travel visas and levy cost $89 per person which includes a $50 service charge. Had Raman used the Sherpa service directly, he would have been charged $445.

But Sherpa had charged Raman roughly $106 per person for his family's travel visas via the FlyReady portal on the Delta Air Lines website. He wasn't even sure if what he purchased included the required tourism fee.

Based on my findings, I agree that Raman had every reason to feel a bit duped by his experience with Sherpa and Delta. It was time to ask these two companies for an explanation.

Asking Delta Air Lines to help 

To find out exactly what Raman purchased and why he was charged $106 per person, I first went to our contact at Delta. This is not a customer-facing person but rather a helpful executive I can speak to as a consumer advocate and a media member.

Here's an excerpt of my conversation.

This family is on a tight budget and was super-excited to finally be able to afford a trip to New Zealand with Delta Air Lines, but now they are feeling a bit bamboozled [by the overcharge for the travel visas]. I'm hoping to find a way to change that.

Michelle Couch-Friedman, consumer advocate

Unfortunately, as I suspected would be the case, Delta Air Lines reiterated that Sherpa is a third-party site. The companies in the FlyReady portal are all third-party companies, and Delta passengers are not obliged to buy those products or services.

An airline spokesperson got back to me with the following response:

Hi Michelle,

Delta works closely with all relevant government agencies, IATA and other trusted third-party partners, including Sherpa, to research country entry requirements and simplify the experience for customers. Using Sherpa via Delta FlyReady – a fast, convenient and more personalized view of travel requirements for customers traveling internationally – is optional and customers can, as always, obtain visas or complete other entry documentation directly with the relevant international government agencies, independently.

After a follow-up conversation, Delta forwarded my inquiry directly to Max Tremaine, the CEO of Sherpa.

Asking Sherpa for an explanation of the pricey travel visas

Tremaine replied to me that he was sorry to hear that Raman was disappointed with his experience, but he did not agree that the services Sherpa offers through the Delta site were misleading or non-transparent.

The New Zealand eTA application with Sherpa is unique because we bundle the eTA application with the Visitor Conservation and Tourism Levy, which is also mandatory for tourists traveling to New Zealand. We show the full price of the eTA, Levy, and Convenience Fee up front, and it makes it look like a large cost by comparison, but we are on the lower end of pricing when compared to similar services. Other visa service providers charge upward of $100 before the government's eTA fee and Tourism Levy. Travelers pay Sherpa $50 for a more straightforward application process, customer support, and a more straightforward day-of-travel experience.

I hope this is helpful. We take a lot of pride in our high customer satisfaction and when we hear negative feedback we respond promptly and grow accordingly. [Max Tremaine, CEO, Sherpa]

Although this answered the question of what Raman actually purchased from Sherpa, he had been charged much more than a $50 service fee.

In a follow-up email, Tremaine told me he would call Raman directly to determine what had gone wrong.

The resolution

Raman had a lengthy conversation with Tremaine about his experience with the services Sherpa offers through the Delta portal.

"He [Tremaine] summarized my bad experience pretty well, empathized, and ultimately offered a refund of the difference between the price I paid [through the Delta website] and the price [on the Sherpa website], which, with my five-person visa, should be a refund of $100.20," Raman said.

But there was an additional positive outcome from Raman's complaint: Today, Sherpa has lowered the prices it offers via the Delta site to match what a traveler would find directly on Sherpa's website.

Although this should have been the end of the story for Raman and his family, there was one more twist to their Sherpa experience, one that almost caused the Ramans to miss the entire trip.

Delta Air Lines: 'Your wife's travel visa is invalid'

On the day the family was set to fly to New Zealand, they excitedly showed up at the airport over three hours before departure. It turns out that they would need every bit of that time to save their trip.

Stepping up to the Delta counter, Raman handed over their passports expecting a smooth check-in experience. But there was a giant problem. The Delta agent explained that Raman's wife had no valid NZeTA visa.

Raman couldn't believe his ears.

We were freaking out when we discovered that the visa for my wife had the first two numbers of her passport transposed, which caused an error because visa and passport didn't match. Delta would not let us check in or check bags until it was fixed.

This was three hours before takeoff and we had flown to LAX to get on this flight – we were basically in tears and overstressed. We tried to chatbot with Sherpa, but no human was working. The gate agents with Delta said [we should] apply for a new one, and it would often take 15 minutes. I was shocked because I downloaded the New Zealand government's app. It took 3 mins to apply for a visa for her, and it was approved in less than 5 minutes!

Our trip was saved, and it turns out the official government way was super easy, much cheaper ($31) and much faster. I learned a valuable lesson through this experience. Thank you for all your help.

It's important to note here that Raman and his family got quite lucky with the swift approval of his wife's travel visa. The New Zealand government advises all travelers to apply for their NZeTA at least 72 hours before departure. Travelers should never bank on that type of quick turnaround.

Luckily for this family, the missing visa was issued in time for their flight, and I'm happy to report that the family has returned from their trip of a lifetime with wonderful memories and valuable lessons learned.

What to know about applying for a travel visa

Travelers should research visa requirements and the associated costs before purchasing an airline ticket, not as an afterthought. Here's what you need to know about travel visas so you can make an informed decision about how to get one if needed.

Determine if you need a visa

The first step in your travel visa process is, of course, to determine if you actually need one for your destination. You can do that by going to the U.S. Department of State website and checking the individual pages for all destinations on your itinerary. There, you can find out if a visa is needed for your journey. Don't forget to check transit (connection) countries, as a visa may be necessary depending on your circumstances, even if you don't intend to stay.

Another great resource to use when checking your personal visa requirements is the free Timatic tool provided by the International Air Transport Association. The professional version of that program is what many airlines use to determine if you have the documents you need to successfully navigate your itinerary.

Visit the website of the embassy or consulate of your destination

To begin the process of applying for your visa, you can visit the website of your destination's consulate or embassy. There, you'll be able to determine if the travel visa process is simple, as Raman belatedly found out was the case with New Zealand, or if there is a more complicated process. If the country you intend to visit has a complicated process, you may determine that using a service such as Sherpa or iVisa is a better option.

But remember, if you use a service to process your visa, there will always be a fee involved. These fees aren't scams. Those charges are the cost of having someone else do the sometimes complicated footwork for you.

Read the fine print to understand the travel visa service

If you choose to use a travel visa processing service, it's imperative that you read all the details that appear on the screen. Things to look out for:

• What are the fees charged by the company?
• Is anything other than a travel visa included?
• Are those fees refundable or partially refundable if your visa is denied?
• What is the general time frame for processing?
• If there is a problem on the day of travel, will the company be able to assist?
• How long is the approved visa valid, and will it be good for multiple entries? That will be especially important if there are multiple countries on your itinerary and you intend to leave and return to any of them during your trip.

In some cases, the time you save by using a visa service like Sherpa is well worth the extra cost, especially for destinations where visa application processes involve multiple steps or pieces of information.

However, these days, many countries offer online visa applications that are processed fairly quickly (nearly instantly in some cases), so you might not need a visa service at all.

Beware of add-on services

Raman's experience provides an important reminder to self-booking travelers: There will typically be third-party goods and services offered to you during and after your ticket purchase. Those options might include travel insurance and waiver products, hotels, car rentals and visas — all at an additional charge.

It's critical before confirming any extra items that you have a clear grasp of what you're buying and how much you're agreeing to pay versus what you might be able to get them for through another source.

Bottom line

Travel visas are a necessary part of navigating this world, but the process of getting one can sometimes be confusing to even the most seasoned traveler.

In this case, Raman felt blindsided because he was unfamiliar with the process and failed to read all the details clearly available to him on Delta and Sherpa's websites. That's a mistake he won't make again, and if you follow these tips, it won't happen to you either.

If you ever hit a wall of AI in your efforts to resolve a problem, as Raman did, my advocacy organization Consumer Rescue can help end your frustration. Just tell my team the name of the company you're battling, and we will tell you the contact information of someone there we know has a reputation for helping customers. This is free of charge for consumers as a service to the community.

If you run into a problem with an airline, hotel company, cruise line, car rental agency, vacation rental company or travel insurance issuer and you can't fix it on your own, send your request for help to [email protected], and I'll be happy to help you, too.