Dynamic currency conversion abroad

MsSupertech

Time and time again we're warned against allowing credit card transactions to be converted to sterling at the time of payment becauyse of unfavourable conversion rates.:p
Imho the best solution to this would be for card providers to give us the option to block DCC from any transactions on our cards. After all it may not be easy to explain our preference in a strange language.
Does anyone know of and credit cards that offer this option? Or is there any technical reason why it can't be done?

richardw

But don't they make money out of it so it isn't going to happen?

MsSupertech

The fact that the card issuers make money needn't stop people trying to change things
Consumer power CAN make a difference, we just need to get the likes of MSE and Which? on the case..

NFH

richardw wrote: »

But don't they make money out of it so it isn't going to happen?

No, the card issuers lose out with dynamic currency conversion because it's then processed as a standard GBP transaction with no opportunity to add a commission. Most card issuers advise against it, even those who don't charge a commission like Halifax Clarity and Santander Zero. It's the merchant and merchant's bank that makes the profit with dynamic currency conversion.

I believe that American Express don't allow it at all. They treat merchants very strictly and don't tolerate this kind of malpractice. However, American Express UK charges a rip-off 3% commission on non-GBP transactions so it's a moot point.