MATHA531 Posted May 31, 2012 #1 Share Posted May 31, 2012 While the dynamic currency conversion (dcc) scam has been around for a while, it is spreading like a cancer throughout the travelling world. Once basically found only in Ireland, it is now very common place most everywhere. I recently returned from London and got into several hassles regarding this scam. To familiarize you with the scam, the charge is supposed to be written up in the local currency and the conversion to your currency is handled under guidelines issued by the credit card processors namely visa, mastercard or Amex. (Amex does not allow the scam so scratch them). The visa/mc rules for converting currencies are stated up front. Basically they use the iterbank rate at the instant the chrge hits their system and add a 1% conversion fee. Your bank may add additional fees (most of the large American banks add an additonal 2% fee for a total of 3% although several eat the 1%). In this scam, the merchant's terminal determines the currency in which the card is issued and instructs the merchant the customer may pay in the local currency or the converted amount as indicated. At this point the merchant is supposed to ask the customer if he wishes to participate in this scam. The converted rate is invariably at least 5 to 10% above the interbank rate. Up till now, this is within visa/m c guidelines. But often the merchant does not ask, simply presses the button involving the selection of converted currency, a receipt is printed with both amounts listed and the customer urged to sign the receipt which includes the statement that the customer was offered the opportunity to pay in local currency and accepts the converted amount as final. Three or four times, I have been presented with this as a fait accompli and when I have objected and asked the merchant to void (not credit) the transaction have gotten lies like it's too late, the merchant has no control over it, it is for myh benefit as the rate is good, the converted amount is just shown for my benefit although in England I don't get the most hideous of all, no speak English. On several occasions, ultimatey the merchant has refused to do the charge properly i.e. in local currency. However, and this is important, do not get upset. Just do as I do. Circle the amount in local currencxy, cross out the amount in your currench, write and initial the statement local currency not offered. Do not fall for the trap of paying cash. When you get home, dispute the charge. I have had to do this three or four times and in each case, visa nd mc have no choice but to charge the transacton back to the merchant, hopefully fining the merchant. If we all do this, we can stamp out this hideous scam. Link to comment Share on other sites More sharing options...
MacThespian Posted June 3, 2012 #2 Share Posted June 3, 2012 While the dynamic currency conversion (dcc) scam has been around for a while, it is spreading like a cancer throughout the travelling world. Once basically found only in Ireland, it is now very common place most everywhere. I recently returned from London and got into several hassles regarding this scam. To familiarize you with the scam, the charge is supposed to be written up in the local currency and the conversion to your currency is handled under guidelines issued by the credit card processors namely visa, mastercard or Amex. (Amex does not allow the scam so scratch them). The visa/mc rules for converting currencies are stated up front. Basically they use the iterbank rate at the instant the chrge hits their system and add a 1% conversion fee. Your bank may add additional fees (most of the large American banks add an additonal 2% fee for a total of 3% although several eat the 1%). In this scam, the merchant's terminal determines the currency in which the card is issued and instructs the merchant the customer may pay in the local currency or the converted amount as indicated. At this point the merchant is supposed to ask the customer if he wishes to participate in this scam. The converted rate is invariably at least 5 to 10% above the interbank rate. Up till now, this is within visa/m c guidelines. But often the merchant does not ask, simply presses the button involving the selection of converted currency, a receipt is printed with both amounts listed and the customer urged to sign the receipt which includes the statement that the customer was offered the opportunity to pay in local currency and accepts the converted amount as final. Three or four times, I have been presented with this as a fait accompli and when I have objected and asked the merchant to void (not credit) the transaction have gotten lies like it's too late, the merchant has no control over it, it is for myh benefit as the rate is good, the converted amount is just shown for my benefit although in England I don't get the most hideous of all, no speak English. On several occasions, ultimatey the merchant has refused to do the charge properly i.e. in local currency. However, and this is important, do not get upset. Just do as I do. Circle the amount in local currencxy, cross out the amount in your currench, write and initial the statement local currency not offered. Do not fall for the trap of paying cash. When you get home, dispute the charge. I have had to do this three or four times and in each case, visa nd mc have no choice but to charge the transacton back to the merchant, hopefully fining the merchant. If we all do this, we can stamp out this hideous scam. Thanks for posting this. Your advice sounds good, and we'll take it if someone tries this on us. Link to comment Share on other sites More sharing options...
Rare MMDown Under Posted June 7, 2012 #3 Share Posted June 7, 2012 Thanks for sharing. I was surprised when I bought duty free from a NZ airport duty free shop to be given the cc bill in Aussie dollars to sign. I had to be assertive to get charge cancelled and reissued in NZ dollars. And yes, the amount on my cc bill for payment was less. Do not let any merchant do currency conversion for you, as it is in there interest not yours! Link to comment Share on other sites More sharing options...
terry99 Posted June 7, 2012 #4 Share Posted June 7, 2012 Yes, I was caught when buying a watch in El Corte Ingles in Barcelona a couple of years ago. I didn't realise the significance of agreeing to pay in GBP until I got my card statement and did the calculations. Forewarned is forearmed! Terry Link to comment Share on other sites More sharing options...
skisteamboat Posted June 8, 2012 #5 Share Posted June 8, 2012 Credit Cards will always give you a better conversion rate, even with Foreign Exchange Fees. Charge in the local currency or use cash.;) Cheers Link to comment Share on other sites More sharing options...
williegirlcat Posted June 17, 2012 #6 Share Posted June 17, 2012 Thank you for the information. This happened to me in Heathrow's Duty Free shop and I was not aware of the reason the cashier asked. Now I know better and am prepared for the next trips. Link to comment Share on other sites More sharing options...
CruiserBruce Posted June 18, 2012 #7 Share Posted June 18, 2012 I saw this post while in Europe for 3 plus weeks. When I saw the post I had already done a couple of purchases in dollars instead of Euros. Now that that I have gotten my credit card bills balanced, I find no real difference in the exchange rate using either system. Perhaps some places may be running something of a scam, but none of the places I experienced were. Link to comment Share on other sites More sharing options...
DeloreanGirl Posted June 19, 2012 #8 Share Posted June 19, 2012 Yes, this happened to us at Christy's shop in Cobh, Ireland. I don't know if it was a scam, per se, but it is a very tricky way to tack on more money to a purchase that you don't need. I stupidly said "dollars" instead of "pounds" and there was a $6.99 charge to convert it there. I was so mad for not catching it as we have a Capital One card and there never would have been a fee to begin with. From that point on, I made sure to say "pounds please" when asked. :( Link to comment Share on other sites More sharing options...
RHumphreysnyder Posted June 27, 2012 #9 Share Posted June 27, 2012 So.......do others agree? Charge in local or pay in local cash? With 9 countries in 10 days, local cash will be a hassle. Link to comment Share on other sites More sharing options...
skisteamboat Posted June 27, 2012 #10 Share Posted June 27, 2012 So.......do others agree?Charge in local or pay in local cash? With 9 countries in 10 days, local cash will be a hassle. Yes Any of the 9 in the Euro Zone? If so, that cuts down on number of currencies. Cheers Link to comment Share on other sites More sharing options...
gosport11 Posted June 27, 2012 #11 Share Posted June 27, 2012 Even the cruise lines do this,if the line uses dollars and you use a UK card they will do the conversion for you as a favour:eek: We always make sure that we let the card co do the conversions for us :) Link to comment Share on other sites More sharing options...
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