Paid Credit Card in Sterling Instead of Euros

cepheus

I have paid for two excursions using a Thomas Cook representative abroad, using a Santander Zero and Gold Nationwide credit cards, however I was never asked which currency I wish to pay in.

At the bottom of a slip it provides two boxes GBP and EURO. Alongside it says "Please indicate your choice by crossing the currency you wish to pay in" HOWEVER BOTH BOXES ARE BLANK. Are they supposed to ask and press something on the card reader?

It carries on..."I certify I was given the option of performing this transaction in onr of two currencies. I have chosen the crossed currency (NOT) and I understand this choice is final.....

On another slip it says and I accept the conversion rate and final amount and that the final selected currency is Sterling"

To rub salt into the wounds it also says there is an 'exchange rate mark up' of 2%!

Obviously they have slipped the 'Sterling trick' in without me noticing. Is this a valid transaction?

bengalknights

Usually its your press 1 for £ and 2 for euro on the machine.

As you state you didnt notice then it would be a valid transaction.

jonesMUFCforever

Try asking Thomas Cook for the 2% back - say that as neither box was filled in you want to complain.

bengal-stripe

cepheus wrote: »

To rub salt into the wounds it also says there is an 'exchange rate mark up' of 2%!

If the exchange rate is 2% above the mid-market rate, then you have gained. - Most CC charge 2.75%.

noh

bengal-stripe wrote: »

If the exchange rate is 2% above the mid-market rate, then you have gained. - Most CC charge 2.75%.

Except for the ones he used!

cepheus

bengalknights wrote: »

Usually its your press 1 for £ and 2 for euro on the machine.

As you state you didnt notice then it would be a valid transaction.

Your second sentence doesn't make sense, don't you mean invalid? Obviously the Thomas Cook official must have pressed this for me, since I certainly would have remembered this!

Yeah the commission and charges on these cards are 0%, with Visa and Mastercard rates as well which seem to have been circumvented here. Rather annoying since I was so careful to choose the right cards.

Not sure if they are two problems, or just one here.

coolesticeking

I think it means Thomas Cook are charging 2% to cover the fees of processing the payment themselves.

cepheus

coolesticeking wrote: »

I think it means Thomas Cook are charging 2% to cover the fees of processing the payment themselves.

The slip is titled IBEROSERVICE and below the exchange mark up of 2% it says (Aplicado por SAND) this applies to both cards not just the santander one.

cepheus

I asked the representative about the 2% charge who enquired. It is evidently something imposed by Thomas Cook, but is inclusive in the price, so even if I had paid in cash the 2% would have to be paid. In addition, the representative told me she had to charge in Sterling, the machine gave her no choice. It also appears as if this transaction bypasses VISA and Mastercard exchange rates, allowing either Thomas Cook or a Spanish bank to charge their own conversion rates, so it looks like they have got this all worked out to the the benefit of themselves. So much for the wisdom of paying by a 'zero' charge credit card

I will check the conversion rate with VISA/Mastercard later but I paid 0.920749 on the 07 June 15:48 BST

Here it is

Estimated Exchange Rate :1 Euro (EUR) = 0.891301 United Kingdom Sterling (GBP)Effective Date :07/06/2011
http://www.freedom-card.co.uk/currency-converter.aspx

so that is 3.3% more expensive in exchange rate alone

fawinds

Usually the 2% is above the foreign bank exchange rate. I have checked that when withdrawing money with my metro bank card at ATMs in Spain and the amount they quote in sterling is much higher than the rate they tell you. That only means they already use an inflated exchange rate to which they add the 2%.

In the end you really pay between 4% and 8%.

cepheus

I will withdraw some cash with the Santander zero card in a couple of days to see if there are any more tricks in store