Santander foreign transaction charges

loobiloo

aah, the printed out bank statement didn't show any exchange rate but now my online account shows:

CARD PAYMENT TO OCALLAGHANS HOTEL,401.54 GBP, RATE 1.00/GBP ON 30-04-2014

and Santander are now confirming that the hotel 'requested this amount'.

I'm still confused and unclear what the 'rate 1.00/GBP' really means.

loobiloo

NFH wrote: »

If your Santander statement doesn't show the EUR amount, then the hotel's bank has used dynamic currency conversion. You should dispute the transaction with Santander on the basis that you authorised EUR 469.80, but the merchant charged more, i.e. GBP 401.54. Make it clear to Santander that the merchant changed the currency and amount from the currency and amount that you had authorised.

Thanks NFH. We posted at the same time. Does the rate now shown on my online statement alter this position?

NFH

loobiloo wrote: »

Thanks NFH. We posted at the same time. Does the rate now shown on my online statement alter this position?

I'm guessing that Santander's system has identified it as a non-UK transaction, but given that the transaction is in GBP, it has shown an exchange rate, albeit a GBP/GBP rate rather than a EUR/GBP rate.

This is almost certainly dynamic currency conversion. Dispute it with Santander, but don't be surprised if you have to put in some effort to make them understand the problem. The point you will need to emphasise is that you did not authorise your card to be charged with GBP 401.54. The merchant (the hotel) will need to provide evidence that you authorised this figure.

loobiloo

Thank you

NFH

Please let us know the outcome. It would be useful for others who encounter similar problems.

loobiloo

I certainly will. Thanks for your help

James2014

If the transaction by Hotel was DCC they have to issue you with a receipt which details both the exchange rate used for converting the margin taken e.g. 5.5% and the 'spot' rate interbank rate that the margin was applied to. DCC is just a way for the retailer (hotel in this instant) to bring the conversion away from the bank/card issuer and make money themselves.

loobiloo

Yes, and its interesting that they've not sent any confirmation of my payment. I had to phone them to make sure they'd received my r!servation. I figured perhaps this was a Dublin way of operating. But odd not to even get an automated response from them - O'Callaghan Hotels.

NiftyDigits

It's doubtful that the hotel knows nothing of the DCC that has taken place.
At least everyone reading should know to avoid using such an establishment.

loobiloo

The annoying things is that if I cancel with that hotel group and find another hotel (all of which are expensive) I'll end up paying more through fees etc. I suspect I might have bite the bullet, accept that I've been overcharged £15 (not a fortune I know, but its the principle) and leave a rotten kipper under the bed on my final night