New French Supermarket scam

Donnie

Maybe Altarf was that man...he seems so intent on defending the practice. :rolleyes:

Seriously though, what normally happens is that Visa or Mastercard handles the foreign currency transactions and your card provider takes their cut.

What DCC does is to let a foreign bank do the conversion and present it to Visa/Mastercard in your home currency.
The foreign bank then splits the spoils...erm...I mean profit, between the vendor and themselves.
Result? You receive a poor exchange rate, over which you have no control, Visa/Mastercard are unhappy about losing their 1% cross currency fee and your bank loses out on forex commissions.

Not all bad I hear you say.

Well, it's not good because, in order not to lose out on revenue, Visa has changed it's charging system to charge that 1% fee regardless of whether there has been a currency exchange or not.
Who is going to pay for that? Does your bank absorb it or pass it on to you?
So, you get a poor exchange rate and possibly hit with the extra Visa charge.

As much as I'm not fond of UK banks charging forex commissions, as least they tell you beforehand.
This is just an underhand way of getting more money out of you, the customer.
Just say no.

trisha

Does this apply to ATM machines?
We have a Nationwide flex card
When we use it in the Greek islands we get the exchange rate of the day.

Using it in Puerto de la cruz in Tenerife at the machine outside the bank,it said did we want the transaction in GBP or Euros (or similar wording) so we put GBP and didn't get the exchange rate as we should have done.

Trisha

LesD

Thanks for that info Trisha. I've not noticed this on an ATM before. Will have to keep eyes open in future. They usually ask if you want Spanish or English instructions. Will need to be careful this doesn't also say do you want the transaction in Euros or Sterling!

We can debate for ever if this is a 'scam' or not! I would suggest very few of the locations using DCC ever specifically offer the currency choice and that is particularly 'underhand' if there is a cost difference at the end of the day - which of course there is.

I would suggest this thread will have been useful to many people who have never thought the currency conversion choice would affect the net Sterling cost they have paid.

pinkfluffybabe

LesD wrote:

Thanks for that info Trisha. I've not noticed this on an ATM before. Will have to keep eyes open in future. They usually ask if you want Spanish or English instructions. Will need to be careful this doesn't also say do you want the transaction in Euros or Sterling!

We can debate for ever if this is a 'scam' or not! I would suggest very few of the locations using DCC ever specifically offer the currency choice and that is particularly 'underhand' if there is a cost difference at the end of the day - which of course there is.

I would suggest this thread will have been useful to many people who have never thought the currency conversion choice would affect the net Sterling cost they have paid.

I have a Nationwide flexaccount. The cash machine I used in Spain last month first asked what language I wanted my instructions in, then for my pin, then what service, then when I pressed withdrawal and amount, it said this will be £49 in GBP or 70euros, press Yes to be charged in GPB, No for Euros. Pressed no, money came out. Checked Nationwide a few days later and I had got my 70euros for £47 thus saving me a couple of quid.

Shops at the airport were also giving you the option, but they displayed at the checkout the amout in both Euro and GBP and asked which you wanted to pay. I would always say Euro as N'wide always seem to give a much better rate (1.46 to the £ that week).

paulie558

The best way seems to be to draw the cash out in Euros using a Nationwide flex account card.
At least cash machines seem to give you the option of which currency to be charged in.
The daily limit is £300,or about 430 euros,if your partner has one on a joint account its double,this should be more than enough for hotels, meals out ect.

Altarf

Donnie wrote:

Strange that you insist that it isn't.

I have put forward clear evidence as to why I think it is a scam.

So rather than to refute it with clear evidence, you choose ignore all of the relevant information, to concentrate on some perceived insult.


Explain to the good people on this forum, why being charged 4% to 5% commission via DCC is better than being charged 0% to 2.75% by their UK card provider.

I repeat. The figure you quoted of 4% relates to American's and is not relevant to this discussion. Where your figure of 5% comes from I have no idea.

The OP quoted 3%, which if it is a scam, at 0.25% different from the normal charge that the vast majority of people pay is not exactly a brilliant scam.

Donnie wrote:

Your statement, "And a large number cannot do exchange rate conversions either which processing the transaction in sterling avoids and for the vast majority of people it cost the same." is not only insulting but utterly wrong.

And so the conversation that you hear from Brits all over Europe of "how much is that in pounds then?" are people who are happy and confident in doing exchange rate calculations.

Donnie wrote:

It might serve you well to remember that this site is called Moneysavingexpert. That means people want advice on saving money, not pomposity insinuating that they are too stupid to understand how much that they are spending and therefore should be happy to pay 5% commission to find out.

I said no such thing and take great exception to your snide insinuations.

Donnie wrote:

What say you, Altarf?

Quite a lot if you were stood in front of me.

Jimble

Went to Auchan last week and chip & pin machine asked on its screen Sterling or Euro's. Just Press Euros. Voila!
Beer a still lot cheaper than UK whatever way you look at it - trudges off to get a 1664 from the fridge....which is full of cheese!

Donnie

Altarf wrote:

I repeat. The figure you quoted of 4% relates to American's and is not relevant to this discussion. Where your figure of 5% comes from I have no idea.

The OP quoted 3%, which if it is a scam, at 0.25% different from the normal charge that the vast majority of people pay is not exactly a brilliant scam.



And so the conversation that you hear from Brits all over Europe of "how much is that in pounds then?" are people who are happy and confident in doing exchange rate calculations.



I said no such thing and take great exception to your snide insinuations.



Quite a lot if you were stood in front of me.

Thanks for replying, Altarf.

First of all, the amount of 4% to %% to which I referred, was personally experienced by myself in Thailand. Each banking institution will choose their own rate.

An example; I prebooked accommodation online. The invoice quoted Thai Baht, the equivalent of £246. When I checked my Nationwide account, there was an amount over £257 deducted.

Hardly 3%.

You speak of the 3% figure as only 0.25% more than the vast majority might pay.
That's not such an intelligent comment. Even if you were correct, with £3,000,000,000 worth of Visa transactions per day that would equal £750,000,000. Yes, seven hundred and fifty million per day.

Potentially quite a good scam eh?

Of course, not all UK banks charge 2.75%. Some charge 2.65%, some don't charge anything.


If all the British people wanted was to find out the equivalent amount in Sterling, then why not provide just that? An indication of the equivalent in Pounds.

It is because it is a money making scheme dreamed up by private individuals as a money making scheme.
The banks and businesses are happy to take it on, as it improves their profits and reduces their costs.

Thank you for 'taking exception to 'my snide comments', I'm sure many have taken exception to comments such as this; I am sure that if when you handed over your credit card you spoke to the shop assistant in their native language and explained that you would rather pay pay in Euros, rather than have them convert to sterling they would happily oblige. made by yourself.

Why on earth should they need to worry about being cheated out of their money by some perceived 'service', because the can't speak to the cashier using the prerequisite language?

Ther's is no doubt that some businesses will utilise DCC in a more 'upfront' way than others, with a clear choice being offered.
But there will be many instances where it will not be made clear at all.

So, if you have some useful money saving advice, please contribute. Otherwise.....

Why don't you state your interest, Altarf? Are you a trader who utilises DCC?


















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budgetflyer

This DCC could be percieved as helpfull if it was done at the interbank rate and maybe only 1 or 2% charged. Then it could if offered as an option and if customers chose it could be seen as a service.
Unfortunately you are offered a tourist rate and then charged a large % on top.
Altarf, I am not stupid, I know when Ive been done.
A service benefits me-these transactions dont

loobs40

It is a scam. Happened to me in Spain last year. Again the receipt said I had been offered the choice of which currency to pay in which was blatantly not true.

I speak reasonable Spanish and the rental agency who scammed me speak reasonable English so the language barrier was no excuse

We had been travelling all day, got off a plane and straight to the agency to pick up keys for the apartment. I only noticed some hours later when I checked the receipt.

I will be on the ball next time !