Charged in GBP without my agreement, card issuer and Mastercard refuse to fix it, any ideas?

Peter_Parsons

I've had a dispute raised with my card provider over a transaction whereby I was charged in GBP rather than local currency without my knowledge or agreement, and, because the transaction was Chip and Pin, both my card provider (a MSE travel best buy) and Mastercard have refused to fix the situation

The situation - I was paying for a hotel bill overseas, the hotel gave me the price in local currency (which I was, and still am happy to pay in the local currency), they gave me the card machine to pay with, it only displayed a request for my PIN (no currency amount shown), I paid, and when I got the receipt it showed that I had been charged in GBP instead of local currency.

I immediately asked the hotel to reverse the charge and bill me in local currency. They told me it was not possible and that I had to dispute it with my credit card company, which I did, and that dispute has been refused because, in the words of my credit card company, "I chose to pay in GBP", which is completely untrue.

Apparently, Mastercard's rules mean that if you use your PIN, you are deemed to have agreed to something you haven't.

I'm now faced with the option of either (1) legal action (no use as the merchant in question is overseas, or (2) the Financial Ombudsman.

Has anyone else ever been ripped off this way using what should have been a travel card best buy? If so, were you able to solve it?

alewin

Peter_Parsons said:

they gave me the card machine to pay with, it only displayed a request for my PIN (no currency amount shown), I paid, and when I got the receipt it showed that I had been charged in GBP instead of local currency.

You should never have paid for it without seeing the actual charged amount on the payment machine, in whatever currency. After all that is what the actual payment is.

How much actual difference are you talking about, have you worked it out and is it worth the bother.

Thrugelmir

Sounds as if the merchant was at fault.  

Do you believe that you were overcharged? 

Peter_Parsons

I'd seen the amount in local currency on the invoice in front of me, and at no point did the desk staff discuss anything other than local currency.

Got ripped off for a 7% loading, working out at not far off 3 figures in Sterling.

Peter_Parsons

Thrugelmir said:

Sounds as if the merchant was at fault.  

Do you believe that you were overcharged? 

Yes, given the 7% loading that I did not agree to and would not have if asked.

Carrot007

Yes all went as planned.

Only fault is you and the merchant.  The card company or mastercard cannot help.

If is likely the merchant is in on it and does it that way for a kickback. Thoughh should allow you to choose on the machine. Of course in a different language it is not always easy. (and some may just do it becuase they think they are helping (or there boss told them that as they want the kickback)).

So blame where the blame is and move on.

Peter_Parsons

Carrot007 said:

Yes all went as planned.

Only fault is you and the merchant.  The card company or mastercard cannot help.

If is likely the merchant is in on it and does it that way for a kickback. Thoughh should allow you to choose on the machine. Of course in a different language it is not always easy. (and some may just do it becuase they think they are helping (or there boss told them that as they want the kickback)).

So blame where the blame is and move on.

There was no option to choose on the machine (for me, anyway). I speak enough of the local language to have been able to choose if I had been asked, which I wasn't.

I see no reason why the issuer and/or Mastercard can't cancel the original GBP transaction and recharge it in local currency (which I've always said I'd be happy to happen).

Thrugelmir

Peter_Parsons said:

Carrot007 said:

Yes all went as planned.

Only fault is you and the merchant.  The card company or mastercard cannot help.

If is likely the merchant is in on it and does it that way for a kickback. Thoughh should allow you to choose on the machine. Of course in a different language it is not always easy. (and some may just do it becuase they think they are helping (or there boss told them that as they want the kickback)).

So blame where the blame is and move on.

There was no option to choose on the machine (for me, anyway). 

There's the scam. You should have confirmed agreement to the value of the transaction being charged. Before being asked for your pin. 

7% loading? 

IanManc

Peter_Parsons said:

Carrot007 said:

Yes all went as planned.

Only fault is you and the merchant.  The card company or mastercard cannot help.

If is likely the merchant is in on it and does it that way for a kickback. Thoughh should allow you to choose on the machine. Of course in a different language it is not always easy. (and some may just do it becuase they think they are helping (or there boss told them that as they want the kickback)).

So blame where the blame is and move on.

There was no option to choose on the machine (for me, anyway). I speak enough of the local language to have been able to choose if I had been asked, which I wasn't.

I see no reason why the issuer and/or Mastercard can't cancel the original GBP transaction and recharge it in local currency (which I've always said I'd be happy to happen).

I can see a reason - when Mastercard investigate, the hotel which didn't offer you the choice of paying in the local currency or sterling when they should have done will say that they did offer you the choice and that you chose sterling.

Peter_Parsons

Thrugelmir said:

Peter_Parsons said:

Carrot007 said:

Yes all went as planned.

Only fault is you and the merchant.  The card company or mastercard cannot help.

If is likely the merchant is in on it and does it that way for a kickback. Thoughh should allow you to choose on the machine. Of course in a different language it is not always easy. (and some may just do it becuase they think they are helping (or there boss told them that as they want the kickback)).

So blame where the blame is and move on.

There was no option to choose on the machine (for me, anyway). 

There's the scam. You should have confirmed agreement to the value of the transaction being charged. Before being asked for your pin. 

7% loading? 

Yes, the difference between what I was charged in GBP and the exchange rate on the day calculated using xe.com.

Peter_Parsons

IanManc said:

Peter_Parsons said:

Carrot007 said:

Yes all went as planned.

Only fault is you and the merchant.  The card company or mastercard cannot help.

If is likely the merchant is in on it and does it that way for a kickback. Thoughh should allow you to choose on the machine. Of course in a different language it is not always easy. (and some may just do it becuase they think they are helping (or there boss told them that as they want the kickback)).

So blame where the blame is and move on.

There was no option to choose on the machine (for me, anyway). I speak enough of the local language to have been able to choose if I had been asked, which I wasn't.

I see no reason why the issuer and/or Mastercard can't cancel the original GBP transaction and recharge it in local currency (which I've always said I'd be happy to happen).

I can see a reason - when Mastercard investigate, the hotel which didn't offer you the choice of paying in the local currency or sterling when they should have done will say that they did offer you the choice and that you chose sterling.

Mastercard are saying that because I used my PIN, I must have agreed to the currency, which is not true.