Thomas cook cash passport, am I being ripped off?

satrdayboy_2

I recently went into Thomas cook to buy $1000 in travellers cheques, I was told by cashier that cheques were not as good as a cash passport, much safer than carrying cheques and could be used in ATMs. So I had one, I am now on holiday in San Francisco and today I used it in a restraunt in China town. Bill came to $33 (V. nice meal). On way out of china town tried four ATMs just to check balance but couldnt do it anywhere. When I got back to hotel checked on line, the $33 was now $38 at an exchange rate of 1.150, basically 15% more. The card was loaded with $s so how am i being charged 15% to use it, will this happen everytime I use card. The cashier did mention there would be a charge for withdrawing money but not using it for purchases. If I had used a Cheque the bill wouldnt have been 15% dearer. Advise gladly appreciated

ferf1223

if the card is in USD, there should be no exchange rate applied. Does the transaction on your statement actually show you an exchange rate?

Does the receipt from the restaurant actually show $33? Or are you maybe not including tax or something in the total?

The only other thing I can think is because it's a UK card, the restaurant charged you in GBP and applied their own exchange rate...I know with credit and debit cards some merchants give the option to put the transaction through in USD or GBP and USD should always be the answer (so the bank sets the exchange rate, not the merchant)...so perhaps they put it through in GBP without checking...not sure if that can happen in a USD pre-paid card, but if it's issued in the UK, maybe it can.

dzug1

I suspect you've been ripped off by the restaurant with DCC. And do you really mean 1.15??? Not $1.51??

Although maybe they've added the standard 15% tip which (in US eyes) would be totally fair and justified if you didn't leave it any other way

satrdayboy_2

I rung Thomas Cook and they said there is a tolerance added by some restraunts and gas stations to cover tips, the person I spoke to said it will be refunded. I have since used it twice more in restaurants and the exchange rate is the same 1.15, even though I left a tip in cash, so restraunt wins both ways. it adds 15% to bill even though i left a tip. I still think its a rip off you only tip if you get good service.

dzug1

satrdayboy wrote: »

I still think its a rip off you only tip if you get good service.

In the US service has to be utterly appalling (not just indifferent) not to tip. Maybe a rip off but it's the way they do things there and they get very touchy if you suggest it's not the ideal way of doing things.

And there is absolutely no way the exchange rate is 1.15 - that's a loading of over 30% and I really don't believe anyone would charge that. Maybe it's saying it's charged 1.15 times the bill, but that's not an exchange rate.

Are Thos Cook saying it's refunded automatically? That is, it's been 'reserved' on the card but will drop off when the transaction is finalised? If so that's quite normal for credit cards - it will never appear on a statement but will reduce the 'balance available' for a while. Prepaid cards won't be any different.

satrdayboy_2

On online staement there is a column which says exchange rate, where I have used it 3 times in restraunts its been 1.15, but where I have used it in stores its been 1. However each transaction is in brackets, so perhaps they havent been finalised yet. I still prefer to leave tips in cash that way I know its going straight to server.

dzug1

It obviously isn't a currency 'exchange' rate - 1 would be even worse. It does look like making provision for a probable tip and should drop out of sight when the amount you actually authorised is properly processed and charged.

With a true credit card that would definitely be so - not sure how it works on a prepaid card.

pelirocco

I would be a bit wary about using one of these cards in a restaurant in the US because they can pre authorise a payment , creating a ghost amount when you come to pay , it will drop off eventually but it can take a few days

But it does sound like they have added the 15% minimum tip they expect.

I found the preloaded cards a bit of a faff , especially if you can not check the balance . Travellers cheques dont appear to be as easy to use as they once were . I now tend to just take cash , plus debit and credit cards .......note the plural , lock up cash and one debit & credit card in safe and hide the others

stoneman

Deleted due to being stupid