Dynamic currency conversion
Feb 8th, 2007, 08:31 AM
#1
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Dynamic currency conversion
Haven't seen any posts of complaints about this lately. Is it still a problem in certain countries (Italy, Ireland?) or have enough travelers caught on to this?
Feb 8th, 2007, 08:38 AM
#2
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Still very prevalent in Ireland (where it first started) in most places associated with tourism, but not usually at fuel stations or supermarkets. Also increasingly encountered in Spain, Italy, France and UK, esp for those businesses with regular international clientele, such as souvenior shops, car rentals and higher-grade hotels and restaurants. While it's true that customer awareness is higher, it is still being touted as a service to customers and choice of currency isn't always given, so vigilance is needed.
Feb 8th, 2007, 08:43 AM
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If you are presented with a receipt to sign that's been translated to your home currency ($ for Yanks, £ for Brits, € for most EU), ask for them to re-do it in the local coin.
If you are refused, sign it and write <i>above your signature</i>
<b>Local currency not offered</b>
...and take it up with your card issuer when you get your bill. You will win, because not offering local is a violation of the merchant's agreement with the card network (Visa, MC).
If you are refused, sign it and write <i>above your signature</i>
<b>Local currency not offered</b>
...and take it up with your card issuer when you get your bill. You will win, because not offering local is a violation of the merchant's agreement with the card network (Visa, MC).
Feb 8th, 2007, 08:56 AM
#4
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Lots of luck with that Robespierre! The best thing is to pay in cash and never return to the same place without sufficient cash in your pocket.
Under most conditions, the hotel staff cannot override the system. Department stores are another story. El Cortes Ingles is the biggest offender in Spain. It's also Spain’s major department store.
Just be aware that this will continue because its profitable to everyone involved in this scam, especially the American company that promotes and controls it.
Under most conditions, the hotel staff cannot override the system. Department stores are another story. El Cortes Ingles is the biggest offender in Spain. It's also Spain’s major department store.
Just be aware that this will continue because its profitable to everyone involved in this scam, especially the American company that promotes and controls it.
Feb 8th, 2007, 09:09 AM
#5
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I'd like to be able to use my credit card and not always use cash (yes, I'd like the miles plus the ability to pay the bill after I return home).
If I tell the merchant, hotel, waiter, etc. in advance before they ring up my bill that I want to pay in Euros will this help to avoid the problem? I'd rather avoid it upfront rather than try to refuse it and/or negotiate the credit later.
If I tell the merchant, hotel, waiter, etc. in advance before they ring up my bill that I want to pay in Euros will this help to avoid the problem? I'd rather avoid it upfront rather than try to refuse it and/or negotiate the credit later.
Feb 8th, 2007, 09:20 AM
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Sometimes, if they know how (and are willing) to override DCC, but other times it makes no difference, as the bill will still be presented in the coverted currency. In which case you have to argue with them to reverse the transaction, pay cash or do as Robespierre suggests (and hope for the best).
Feb 8th, 2007, 09:35 AM
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You don't have to hope for the best. The policy is clearly defined here:
http://corporate.visa.com/pd/consume...x_faq.jsp#faq5
<i>Some merchants now offer to convert your bill into your home currency. This is called dynamic currency conversion and means the merchant—and not Visa—is converting the currency. As a consumer you may value knowing the exact price in your home currency at the point of sale but you should also know you may be charged extra for this service by the merchant. <b>Visa requires that you are provided a meaningful choice at the point of sale</b> and you have the right to buy your purchase in the local currency so that you do not incur any additional fees the merchant may assess. Visa also requires merchants offering this service to inform you of the exchange rate including any applicable commission being charged. If you choose DCC for a transaction, you receive the merchant rate, not Visa's rate.</i>
http://corporate.visa.com/pd/consume...x_faq.jsp#faq5
<i>Some merchants now offer to convert your bill into your home currency. This is called dynamic currency conversion and means the merchant—and not Visa—is converting the currency. As a consumer you may value knowing the exact price in your home currency at the point of sale but you should also know you may be charged extra for this service by the merchant. <b>Visa requires that you are provided a meaningful choice at the point of sale</b> and you have the right to buy your purchase in the local currency so that you do not incur any additional fees the merchant may assess. Visa also requires merchants offering this service to inform you of the exchange rate including any applicable commission being charged. If you choose DCC for a transaction, you receive the merchant rate, not Visa's rate.</i>
Feb 8th, 2007, 09:40 AM
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I recently pre-paid for a hotel room. I was offered the amount in dollars or GBP. I specified GPB and no Dynamic Conversion took place. I suspect that if I had specified dollars, DCC would have been used.
An off-topic note: within 4 hours of the transaction I received a call from my credit union to check that this was a legitimate transaction. The person on the line also reminded me to give the credit union my travel dates.
An off-topic note: within 4 hours of the transaction I received a call from my credit union to check that this was a legitimate transaction. The person on the line also reminded me to give the credit union my travel dates.
Feb 8th, 2007, 09:51 AM
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Yes, I know the Visa/Mastercard rule, but it also depends on your card issuer and how helpful they are in dealing with your complaint. Some will quickly do a chargeback, others may be reluctant to take action unless a clear fraud has been committed.
Feb 8th, 2007, 09:56 AM
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If your card issuer doesn't adjust the charge and credit your account <i>immediately</i>, you need to take your business somewhere else.
(For the record, I've never heard of a cardholder being refused if the DCC was documented correctly - see example above.)
By the way, the merchant wins if you pay cash - he doesn't have to pay the merchant discount points to his bank.
(For the record, I've never heard of a cardholder being refused if the DCC was documented correctly - see example above.)
By the way, the merchant wins if you pay cash - he doesn't have to pay the merchant discount points to his bank.
Feb 8th, 2007, 10:38 AM
#12
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"Sometimes, if they know how (and are willing) to override DCC, but other times it makes no difference, as the bill will still be presented in the coverted currency. In which case you have to argue with them to reverse the transaction, pay cash or do as Robespierre suggests (and hope for the best)."
I thought the DCC was the override function. Normally if they were charging something to a local resident they would use the "normal" currency function. It seems like they would have to specify "U.S. Dollars" in their computer (cash register) to charge Americans this way.
I thought the DCC was the override function. Normally if they were charging something to a local resident they would use the "normal" currency function. It seems like they would have to specify "U.S. Dollars" in their computer (cash register) to charge Americans this way.
Feb 8th, 2007, 11:09 AM
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Most POS terminals I've come across has DCC as default option when a foreign card is swiped or inserted. But there is always a key the operator has to press in order for the transaction to go through. Some are simply told to press the button as a matter of routine and don't realise that it's an 'opt in' button for DCC.
Feb 8th, 2007, 11:38 AM
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I had DCC happen to me this past September at a car rental (National) counter at Heathrow.
I was charging the payment for additional insurance and simply signed the receipt without carefully looking at it.
Later I discovered that included in the description was the notation that I had agreed to be charged in my own currency after being offered a local currency option. This was, of course, not true as no offer had been made.
Naturally, I should have read what I was signing more carefully so I had to eat this one.
In another instance, at a hotel in London I notice I was being charge, at check-out, in Dollars and I asked that the charge be put through in Pounds.
The clerk said she didn't know how to override this so I asked to speak to the manager. The manager immediately showed the clerk HOW to do the override so I think it is always good to persist at the point of sale.
I was charging the payment for additional insurance and simply signed the receipt without carefully looking at it.
Later I discovered that included in the description was the notation that I had agreed to be charged in my own currency after being offered a local currency option. This was, of course, not true as no offer had been made.
Naturally, I should have read what I was signing more carefully so I had to eat this one.
In another instance, at a hotel in London I notice I was being charge, at check-out, in Dollars and I asked that the charge be put through in Pounds.
The clerk said she didn't know how to override this so I asked to speak to the manager. The manager immediately showed the clerk HOW to do the override so I think it is always good to persist at the point of sale.
Feb 8th, 2007, 02:18 PM
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". . .others may be reluctant to take action unless a clear fraud has been committed."
If you have a copy of your charge slip with "local currency not offered" on it, then fraud HAS clearly been committed. I can't believe a credit card company wouldn't back you up on that -- it's their own rule!
Meanwhile the suggestion that if they refuse to override in local currency you should pay cash really grates me the wrong way. That's exactly what they want you to do -- so they avoid paying anything for the credit card -- and by aggreeing to pay cash rather than insist they do it right, you are merely encouraging to keep up their illegal practice.
If you have a copy of your charge slip with "local currency not offered" on it, then fraud HAS clearly been committed. I can't believe a credit card company wouldn't back you up on that -- it's their own rule!
Meanwhile the suggestion that if they refuse to override in local currency you should pay cash really grates me the wrong way. That's exactly what they want you to do -- so they avoid paying anything for the credit card -- and by aggreeing to pay cash rather than insist they do it right, you are merely encouraging to keep up their illegal practice.
