Travelers Alert

Mikhail

From my last couple of trips around Europe I’ve noticed that more and more retailers instead of asking you to choose a currency for payment or charge your card in the local currency, charging it using their bank exchange rate which of course is not commission free.

Although, it might be a good new for those who have debit cards ‘from hell’ which apart from regular non-sterling commission of 2.75-2.99% also charge £1.5 per transaction. It is certainly bad news for those who have commission free cards, e.g., Halifax Clarity, Capital One's Classic Extra, Nationwide Select, etc.

Local bank conversions are absolutely not transparent! In the best-case scenario you will see the exchange rate they offer, without knowing the current market rate. Don’t assume that they will offer a better rate, because they won’t! After several incidents in Spain I worked out that on average they charge 3-5% on top of the MasterCard or VISA exchange rate.

If it happens to you ask for a refund and pay again in the local currency, the salesperson will be very annoyed, especially if the place is busy, but it is your money and it is entirely their fault as they should have asked you before proceeding. Insist on a refund, as they know perfectly well what they are doing and how to refund a transaction.

The best way to avoid this kind of situation is to tell the cashier in advance that you would like to pay in the local currency. Always check the receipt; e.g., if you are in Spain and your receipt is in British Pounds you’ve been conned. Please note, your bank won’t be able to determinate the exchange rate in the local currency as it has been done at point of sale. If you consider that the amount is significant to you, you could dispute the transaction via your bank, although, I never heard about such cases. Hope you find this information useful.

dzug1

Mikhail wrote: »

If it happens to you ask for a refund and pay again in the local currency, .

Trouble is the refund will be subject to a spread and thus be less than you paid.

reclusive46

dzug1 wrote: »

Trouble is the refund will be subject to a spread and thus be less than you paid.

Agreed. You want them to void the transaction, rather than refund it.

Luckily I've only been charged in Pounds once (I wasn't asked) but it was only on a 5 euro transaction, so didn't really matter.

guesswho2000

Dynamic currency conversion is a common issue.

The place I've experienced it pushed quite heavily is China and Hong Kong, the receipts will have two boxes GBP and CNY/HKD, you have to put a cross in the correct box and make sure you actually tell the cashier you want to pay in local currency.

reclusive46

guesswho2000 wrote: »

Dynamic currency conversion is a common issue.

The place I've experienced it pushed quite heavily is China and Hong Kong, the receipts will have two boxes GBP and CNY/HKD, you have to put a cross in the correct box and make sure you actually tell the cashier you want to pay in local currency.

The Chinese banks love to cover up the button to cancel DCC as well (As Visa and MasterCard don't have any power over terminals in China). At some merchants I know colleagues will just pay with their Amex or Diners Club as it means there will be no DCC (Even if their is a 3% fee on card).

Mikhail

dzug1 wrote: »

Trouble is the refund will be subject to a spread and thus be less than you paid.

In my case the salesperson used the transaction ID to refund exactly the same amount in GBP.

grumbler

dzug1 wrote: »

Trouble is the refund will be subject to a spread and thus be less than you paid.

The spread affects the seller, not you. The seller charged your card in ££ and will refund the same amount in ££.