Halifax Clarity cost me more than expected for a purchase abroad

glocal

A few days ago I used my Halifax Clarity for the first time abroad to pay for a 158E purchase. At the till I was presented with a card reader stating this amount and then it automatically switched to displaying £116. I knew that was too much but in the circumstances I went ahead anyway, trusting Clarity's reputation. The slip displays both these amounts and 'T.CAMBIO: 0,739955 COMISION: 0% DIF. CAMBIO: 2,00%'. Later that day I checked at http://travelmoney.moneysavingexpert.com how many pounds I should pay for 158E. Clarity was the best as usual with £110.87 followed by others, including Debenhams, with £114. I was hoping £116 was indicative, but now it appears as a transaction on Halifax's website.

Can someone explain to me please what happened there? It seems to me that either the retailer or Clarity overcharged me. Either way, if this can happen, Clarity can be unreliable when used abroad.

BlondBoy

Dynamic currency conversion - when you accepted the option to pay in Sterling, the retailer did the exchange at a much poorer rate than you would have got if you'd chosen to pay in Euros.

It's nothing to do with the Clarity - the same thing would have happened with any card. More details here:

http://blog.moneysavingexpert.com/2013/03/12/using-plastic-overseas-always-pay-in-euros-even-if-it-says-0-commission/

Rule of thumb: if you've got the Clarity, ALWAYS pay in local currency. Then Halifax do the conversion and you get the best rate.

If you choose Sterling when you're abroad, the retailer does the conversion at a worse rate and charges the Clarity card in Sterling.

glocal

Aha, that explains it. Good thing I spotted the issue in the very first transaction abroad and switched to cash. Thanks. I think this should be explained more prominently in the relevant articles here.

YorkshireBoy

glocal wrote: »

I think this should be explained more prominently in the relevant articles here.

It is...

If they ask 'want to pay in pounds or euros?', say 'euros'


Many overseas hotels, shops & ATMs ask this when you pay by card, especially in Spanish tourist resorts. If you choose pounds, the retailer does the currency conversion – but rates can often be poor compared with letting your card do it (choosing euros). For a great comparison of rates, see Martin's euro analysis.

If you've got a top overseas card, always choose the local currency, as your card does the exchange and it's unbeatable.

If you're using a bog-standard credit or debit card, it's touch-and-go. Sometimes the card machine will show you the 'non-sterling cash fee'. If this is under 2.5%, go with pounds. If it’s over, pick the local currency.


http://www.moneysavingexpert.com/credit-cards/travel-credit-cards#seven

If you check your Clarity paperwork, or their website, you'll probably find something similar.

chuckley

so the retailer picked for you?

chattychappy

In theory you are always given a choice. In practice you might be cajoled/misled/whatever into making the wrong selection. And I've been in a situation where I was offered a Euro amount, typed in my PIN, handed the unit back and then the RETAILER was given the choice of how to bill. (Without my having a chance to say anything, I saw he selected Euros so no harm done.)

In theory, you can dispute a transaction where you didn't agree to DCC. Whether your CC believe your story is another matter.

BlondBoy wrote: »

It's nothing to do with the Clarity - the same thing would have happened with any card.

I know what you mean, but it's a cop out really. In this case, Halifax delivered the card and have the contract with with Mastercard. They are not innocent bystanders.

zagfles

chattychappy wrote: »

In theory you are always given a choice. In practice you might be cajoled/misled/whatever into making the wrong selection. And I've been in a situation where I was offered a Euro amount, typed in my PIN, handed the unit back and then the RETAILER was given the choice of how to bill. (Without my having a chance to say anything, I saw he selected Euros so no harm done.)

In theory, you can dispute a transaction where you didn't agree to DCC. Whether your CC believe your story is another matter.

Anecdotes here have indicated Halifax will refund the difference if you dispute it. Whether they pass that charge onto the dodgy retailer who applied DCC without asking I don't know.

I know what you mean, but it's a cop out really. In this case, Halifax delivered the card and have the contract with with Mastercard. They are not innocent bystanders.

Don't understand what you mean. It wouldn't be Mastercard applying DCC would it? It'll be the bank providing the retailer with their merchant services as I understand it. So I can't see anything the Halifax could do.

zagfles

chuckley wrote: »

so the retailer picked for you?

It's very common in Spain for that to happen. Ireland too. The rules are that the customer must positively choose DCC, but because retailers get a cut of the DCC markup, they often apply it without asking.

Always specify you want to pay in Euros (or whatever the local currency is) when handing over your card.

Check the amount on the terminal is in Euros. If it isn't, don't enter your PIN.

Check the receipt shows Euros, and not GBP anywhere on the receipt (sometimes they show both Euros and GBP, with GBP in small print - if it shows GBP anywhere on the receipt then you've been ripped off by DCC). If that's happened, demand the transaction is voided or you'll be putting a fraud report into you bank. You authorised (eg) 130 EUR, not 100 GBP, charging a different amount to the amount you authorised is fraud.

bigadaj

Yes, it is common. Had it with a hotel in Spain a couple of years ago, told the staff member to reverse it and paid in Euro but she looked very confused as to why I wanted it done that way. It could be that staff are being Mis trained to believe this approach is advantageous to the customer when it's actually worse.

Was also in Portugal a few weeks ago and every cash machine defaulted to dcc, or at least made it more prominent. There must be millions of people being disadvantaged every year.

chuckley

ohhh I never had this happen in Spain at all. maybe certain parts? It was either 'auto' recognised when they put the card in as one girl was confused and was about to ask but it defaulted to euro. it was a prepaid euro card. but other times I was asked.

their cash machines annoyed me though. too many 'are you sure' screens.

In Italy with my fee free euro cc it was auto everywhere.

chuckley

chattychappy wrote: »

In theory you are always given a choice. In practice you might be cajoled/misled/whatever into making the wrong selection. And I've been in a situation where I was offered a Euro amount, typed in my PIN, handed the unit back and then the RETAILER was given the choice of how to bill. (Without my having a chance to say anything, I saw he selected Euros so no harm done.)

isn't that fraud, since you pinned for the euro amount?