Credit card use in Madeira

travelgrandad

I’ve travelled quite a lot since retiring and always use a Nationwide credit card which has good travel rates and when asked I choose to pay in the local currency.  I think this is correct?

On a recent trip to Madeira I was confused by a new procedure, new to me. Sometimes I was asked to confirm I would accept the exchange rate even though I was paying in Euros. This could vary between 4% and 6% on the transaction and seems to completely bypass any good practices or best credit card choice.

Some restaurants were exactly as I expected. When asked, I paid in Euros and got the rate I expected when I looked at my statement.

I don’t think this is a scam as such but certainly a method of making paying by CC more expensive.

Has anyone else come across this and are they any ways to circumvent. I tried paying in cash at some of the offending establishments but was told they were cashless. 

la531983

Just make sure you pay in Euros on the machine. No scam.

eskbanker

travelgrandad said:

On a recent trip to Madeira I was confused by a new procedure, new to me. Sometimes I was asked to confirm I would accept the exchange rate even though I was paying in Euros. This could vary between 4% and 6% on the transaction and seems to completely bypass any good practices or best credit card choice.

The exact wording will naturally vary from one place/person to another, but the choice is basically to pay in € or to accept an exchange rate - if you go with the latter then that's the expensive dynamic currency conversion (DCC) option that everyone warns against.

https://www.moneysavingexpert.com/news/2017/07/Asked-to-pay-in-euros-abroad-but-charged-in-pounds-You're-not-alone-in-being-ripped-off/

Pompeii2

I also had the same  problem last year in Madeira, like yourself I regularly use credit cards abroad and always  pay in the local currency, but in Madeira  I  had to cancel quite a few transactions  because even if you ask to pay in euros the card reader seems to default " to confirm the exchange rate." Although  the cashier's English was very good he was unable to show me how to avoid paying an exchange rate. 

zagfles

travelgrandad said:

I’ve travelled quite a lot since retiring and always use a Nationwide credit card which has good travel rates and when asked I choose to pay in the local currency.  I think this is correct?

On a recent trip to Madeira I was confused by a new procedure, new to me. Sometimes I was asked to confirm I would accept the exchange rate even though I was paying in Euros. This could vary between 4% and 6% on the transaction and seems to completely bypass any good practices or best credit card choice.

Some restaurants were exactly as I expected. When asked, I paid in Euros and got the rate I expected when I looked at my statement.

I don’t think this is a scam as such but certainly a method of making paying by CC more expensive.

Has anyone else come across this and are they any ways to circumvent. I tried paying in cash at some of the offending establishments but was told they were cashless. 

So don't accept! It sounds like it was giving you the choice there, rather than the choice to cancel the transaction. I've seen card machines which ask you twice, they are obviously designed to steer people into using DCC. Sometimes it asks after tapping or PIN entry, so keep an eye on the terminal/PIN pad after tap/PIN and don't hand back till the receipt is printing.