MSE News: Paying by card on holiday? Here's why you should keep hold of the terminal

Former_MSE_Megan_F

Holidaymakers paying by card are being hit with hideous exchange rates because some payment terminals allow foreign shops, hotels and restaurants to select which currency to charge in AFTER they've entered their PIN, a MoneySavingExpert.com investigation reveals...

Read the full story:
'Paying by card on holiday? Here's why you should keep hold of the payment terminal AFTER you've entered your PIN'

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jk0

I didn't dare use my cards on a recent trip to Berlin. My bank said there was no way to stop them being blocked if I did. !!!!!!!

Instead, I just took a wad of Euro notes.

firefox1956

I have been warning about this for a long time.
Nearly every shop / garage / supermarket etc is now asking what currency you want to pay in.
They very sneakily select GBP before passing the terminal to you.
Never used to happen...............

zagfles

firefox1956 wrote: »

I have been warning about this for a long time.
Nearly every shop / garage / supermarket etc is now asking what currency you want to pay in.
They very sneakily select GBP before passing the terminal to you.
Never used to happen...............

They do if AFTER too. That's far more sneaky. Read the article.

zagfles

jk0 wrote: »

I didn't dare use my cards on a recent trip to Berlin. My bank said there was no way to stop them being blocked if I did. !!!!!!!

Instead, I just took a wad of Euro notes.

Get a better bank then. I've been using cards abroad for 30+ years, there's the occasional problem with them getting blocked but I've had cards blocked using them in the UK. Some banks want you to tell them if you're going abroad, there's usualy an option on online banking. Far cheaper and safer than carrying a load of cash around.

phillw

zagfles wrote: »

They do if AFTER too. That's far more sneaky. Read the article.

That isn't sneaky, it's fraud. The chip and pin terminals should not have been approved.

zagfles

phillw wrote: »

That isn't sneaky, it's fraud. The chip and pin terminals should not have been approved.

That's what I've been saying on here in previous discussions.

When we were in the Canaries a few months ago, every single handheld terminal we used in restaurants asked about DCC after PIN entry. Some twice.

Which makes this bit laughable:

Jennifer Conneely, board member of the Dynamic Currency Conversion Forum, an industry body that promotes the best practice of dynamic currency conversion, told us it's "technically possible" a currency choice could be changed after a customer has entered their PIN – though it would be "against all card scheme rules".

I just kept hold of the terminal after entering the PIN and answered the DCC questions myself. Was never an issue, since it's etiquette for the waiter to look away as you're entering the PIN so they won't know when you've finished.

jk0

zagfles wrote: »

Get a better bank then. I've been using cards abroad for 30+ years, there's the occasional problem with them getting blocked but I've had cards blocked using them in the UK. Some banks want you to tell them if you're going abroad, there's usualy an option on online banking. Far cheaper and safer than carrying a load of cash around.

Thanks. I thought exactly the same as you, and did notify them with online banking. They replied that this notification would have no effect. I believe this is now common to all banks.

Take heed.

benjus

jk0 wrote: »

Thanks. I thought exactly the same as you, and did notify them with online banking. They replied that this notification would have no effect. I believe this is now common to all banks.

Take heed.

I take that to mean that they won't block your card automatically if it's used abroad, so no need to tell them that you're going away, but they may still block it if any suspicious activity is detected. Which is probably what you want anyway.

Personally I've rarely bothered to tell the various banks I use when I'm travelling abroad and have never had a card blocked abroad.

eDicky

jk0 wrote: »

Thanks. I thought exactly the same as you, and did notify them with online banking. They replied that this notification would have no effect. I believe this is now common to all banks.

I think you have misunderstood. Banks are very happy to allow their cards to be used overseas and rarely block them without good reason, they are making good money on non-sterling fees and exchange rate loading.

You are also making a double mistake if you carry only one card with you, without backup, and it is not one of the fee-free cards such as Monzo, Halifax Clarity, Starling Bank or Metro Bank (the latter for Europe).

jk0

No. I did not misunderstand. Both companies told me that when I use my card abroad, there will be a request come up on the machine display for further security information. However, many retailers simply tell you the card has been refused. In that case, you will find your card blocked until you make contact with the card issuer.

In view of all that nonsense, cash it is!