credit card exchange rate in Spain

brodev · 14 March 2005 at 6:51PM

I use my Liverpool Victoria Visa card in Spain as the exchange rate is very good with them. Recently I have been required to sign a receipt which states that
" I accept that I have been offered a choice of currencies for payment. I accept the conversion rate and final amount. I accept that the choice of transaction currency is final . No refund"
When I pointed out that I had not been offered a choice of currencies and that I did not wish for them to do the conversion from Euros to pounds, I was told that I had no option. Naturally the rate was not great. This has happened 3 times in different places. Each time it was an electronic connection operated by a Spanish bank called La Caixa. I reluctantly had to sign in order to pay my bill.
Can anyone direct me as to where I make my complaint? I presume it is to Saga, who operate my Liverpool Victoria card, or is it to LV directly or even directly to Visa

Reaper · 14 March 2005 at 7:13PM

This is such a con and likely to spead. Certainly kick up a fuss and make life difficult for the Spanish Bank.

No idea who to complain to but I suggest you start by asking LV where the complaint ought to be directed. I suspect they will say Visa.

Rafter · 15 March 2005 at 12:10PM

I think the problem is at the Spanish end and you will get little joy from LV or even VISA.

I think you have the right to request billing in local currency though as suggested by the text of what you are signing - if they refuse to bill you in Euros, kick up a fuss and take your business elsewhere (if possible).

R.

Galstonian · 15 March 2005 at 12:39PM

I'd still suggest complaining to your card issuer and request that they pursue this with Visa. It is getting much more widespread and I think the only reason it is allowed is that you are supposed to be given the choice.

brodev · 15 March 2005 at 8:30PM

Thanks for all replies. I have today received a letter from Natuzzi plc. stating that they could not offer me a choice of currencies. They are also escalating this to their head office. I have decided to direct my first complaint to Saga as they are my card provider. I have been caused embarrasment in public places and I have been placed in a position where I had to sign something which was not true.
I'll keep you updated.
Any other suggestions will be greatly appreciated

pin · 15 March 2005 at 8:59PM

I had a very similar problem in Spain. I initially complained to my CC issuer (Nationwide) and they said it was a Visa problem, as they just passed on the foreign transaction from Visa. They did pass on the complaint to Visa. Visa did come back to me saying that the issuer should be offering you the choice of currency (local or home currency). If they are not, this is against their agreement with Visa. However I had no joy in recovering the difference.

anniebooth2 · 19 March 2005 at 1:01PM

They are also using this scam in Tenerife, we received a rate 8 cents to the pound less than changing cash. We were never offered the choice of currency even though transaction slip said we had. We even tried requesting to pay in euros before the transaction was complete and were told "the machine automatically debited british credit cards in GBP and we could either pay cash or accept it" Restauranteurs etc blamed the banks but many lovely evenings out were spoilt as a result. Outrageous !

brodev · 21 March 2005 at 8:53PM

I have received a reply to my complaint to Saga. They basically say that I should go to Visa and the gave me the Visa website address. I did , however, receive today from Saga my account which contained a flyer stating that one of the features of my Saga Visa card was "No overseas commission on purchases within the European Union and up to only 1% worldwide" I have replied to them pointing this out. If there are any legal experts out there I would like there view on whether or not Saga are in breach of contract.(without predudice) of course.

Galstonian · 21 March 2005 at 11:18PM

I doubt you can hold Saga to account for something which is clearly led by retailers and/or foreign banks.

pin · 22 March 2005 at 6:45AM

brodev wrote:

I have received a reply to my complaint to Saga. They basically say that I should go to Visa and the gave me the Visa website address. I did , however, receive today from Saga my account which contained a flyer stating that one of the features of my Saga Visa card was "No overseas commission on purchases within the European Union and up to only 1% worldwide" I have replied to them pointing this out. If there are any legal experts out there I would like there view on whether or not Saga are in breach of contract.(without predudice) of course.

Afraid Saga are not responsible. It is the retailer making the extra charge (via the dynamic conversion).

Incidently have just stayed in a hotel in Bangkok. Payed by CC. Bill came through using Dynamic Currency Conversion (i.e. in pound sterling). Asked them to cancel the transaction and make the payment in Thai Baht. They were very apologetic and changed the payment to thai baht.

MarkyMarkD · 22 May 2005 at 3:03PM

I don't believe that SAGA would be in breach of contract. But they WOULD be in breach of advertising standards principles if they claim overseas transactions are commission free - except that it's not them doing the commission. Effectively it's the merchant charging a card handling fee of a different type, which only applies to foreign customers.

Given that in the UK it's allowed for merchants to charge a differential price to card customers, it's not a lot worse than that apart from the lack of disclosure of the cost to the customer.

credit card exchange rate in Spain

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