[Anonymous]

[Cedric_Statherby]

Can anyone explain the law to me here.

I have just been in Sweden where the card system at the restaurant I was dining at spotted that I was using a Euro-denominated credit card, and “helpfully” converted SEK 731 into EUR 112.46. The true exchange rate should have been more like EUR 87 so this is a near-30% mark-up. (Photocopy of receipt available!)

I explained I did not accept the conversion and wanted to be billed in Swedish Kronor but the restaurant refused and said that their system did not allow this once it had recognised a EUR-based card, and they could not override it. A nice version of “computer says no”.

In the end I had to pay cash to avoid a stupid rate – which fortunately they accepted. But are they right to force me to pay in Euros at their chosen exchange rate, or was I within my rights to insist they charged my card in Kronor?

[JeremyWood]

Yes – DCC should always have an option to bill in the transaction currency – so you can refuse the conversion. The conversion is ALWAYS at a worse rate than you’d get natively (even I think with Amex) and particularly so if you have a card with no foreign exchange fee.

DCC is a thoroughly bad rip-off from the banks. I’ve also found its use heavily attempted in Spain by BBVA in particular.

[HarryMonk]

i have been caught out by this before, only the once and won’t make the mistake of not checking the voucher again. The fact that DCC is an opt out process rather than opt in is what makes it more of an unscrupulous practice.
It would be interesting to know who sets the additional margin with DCC, is it the merchant or credit card company? and where the addition margin goes? is it the merchant, card co or is it shared?
Pehaps this maybe the next mis-selling scandal?

[SwissExPat]

I always refuse it… But will often jot down the rate offered and compare when I get the statement….. Never ever come even close so ave avoided the rip off.

I have a usd denominated MasterCard issued by a swiss bank and every time i am offered DCC, the agent says “local currency” or “Swiss Frank” even though the card us a USD card. Hence I avoid 2 sets of conversions…

[chrisdxb]

I have never been to Sweden, but anywhere else I go, the merchant would always ask if I want to pay in the local currency or my card’s. Obviously, I always choose the latter. The only time the contrary ever happened to me was in a street side local restaurant in Mallorca where they simply charged my card in Euro without asking (and actually showed us this I’m-doing-you-a-favour kind of face). Didn’t really make a fuss as we didn’t spend much anyway and it was the last day of a wonderful holiday, so just chose to let it go.

[CXDiamond]

You should be offered a choice of the currency in which to pay. I don’t think any country can refuse to bill you in their own currency. I would have faced them down and told them to bill me in kroner or write the cost off. They were acting totally illegally.

[chrisdxb]

Wait a minute, did I say, “I always choose the latter”?? I meant, “I never choose the latter”! As a precautionary measure, I recommend you to tell them upfront that you want it in the local currency, right before you hand out your card. Good luck!

[JohnHarper]

Agree, you must be offered a choice of the local currency or your own. I too would stand my ground and if necessary ask for the police to be called, you won’t be in the wrong when they get there.

[MarcusUK]

Amex cards noirmally charge a foreign transaction fee, though the exchange rate is in line with the banking not the tourist rate, much farer.

I see Duty Free areas offer this converted currency often, but i pay in the local currency, as their conversion is 10% on top for me.

Having said that, even UK debit cards now get charged a fee for overseas use. For small amounts I would use Cash these days.
I prefer my own bank or car provider to make a calculation so i pay in local currency only.

[Anonymous]

[SwissExPat]

3 weeks ago I purchased a pre paid stay at a Conrad European property. I used the Hilton website as I have always done for the last 4 years I have been a diamond member.

The booking confirmed as

” This reservation requires a credit card deposit of 675.00 € EUR which will be charged to your card.”

I paid with my euro denominated Credit Suisse credit card issued in Switzerland. I keep such cards to ensure I pay in the same card currency as the local charging currency.

My recent statement showed an entry for CHF 877 which was converted to my cards billing currency to a total (incl credit Suisse 2.5% charge) of Euro 725….. A nice little €50 surcharge on my original agreed purchase of €675.

I will be taking this up with the Hotel and the card company…. Fellow travellers beware also!

[Bucksnet]

I had this at a hotel once. At check out the credit card terminal was passed to me, and the receipt had already printed ‘you have agreed to pay in your own currency’ even though nothing was mentioned. No doubt the rate was worse than I otherwise would of got.

I presume you were charged in Swiss Francs because the address you gave was in Switzerland?

[SwissExPat]

I assume that the billing country being Switzerland was the cause.

I am also assuming that this is simply an attempt by the hotel or chain to generate more revenue from commissions from the bank card services provider and hoping that x% of punters like me do not notice.

Well this one notices and I hope Business Traveller does an exposé on this attempted rip off.

[MartynSinclair]

What would have happened if you had paid the full agreed amount instead of a “deposit”?

Would the full reservation amount quoted in Euros be considered contractual or does the small print permit the additional charges??

[Author]

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