Beware of Irish Dynamic Currency Conversion
Apr 29th, 2005, 10:59 AM
#1
Original Poster
Join Date: Jan 2003
Posts: 507
Likes: 0
Received 0 Likes
on
0 Posts
Beware of Irish Dynamic Currency Conversion
Just back from a 10 day trip around Ireland and found this scam to be difficult to avoid.
It was pulled on me twice, once at a pub in Kenmare,and the other time at a Petrol station outside of Cork.My USAA MasterCard only charges a 1% fee for foreign currency conversion,which was netting me an average rate of $1.30 per Euro.When I went to pay the bill at the pub ,they automatically converted by tab to USD at a rate of $1.365 per Euro.I protested and asked to be charged in Euros.So the barman voided the USD transaction and attempted to process the bill in Euros,after some time he informed me that his machine would only accept my card in a USD transaction mode.My only option was to accept the charge in USD at $1.365,or pay cash,I payed cash.
The exact same circumstances happened at the Petrol station,the orginal USD transaction was voided by the clerk,he attempted to charge me in Euros and I was told his machine would not accept my CC except for a USD transaction .This time I did'nt have the cash to pay the charge and had to accept the same $1.365 conversion rate.
After this I always insisted that all subsequent CC transactions be conducted in Euros only and had no further problems.
This scam has the potential to be very expensive if you have a CC that charges an additional 3% over the converted rate.Instead of my $1.365 rate it would have been $1.39!
It was pulled on me twice, once at a pub in Kenmare,and the other time at a Petrol station outside of Cork.My USAA MasterCard only charges a 1% fee for foreign currency conversion,which was netting me an average rate of $1.30 per Euro.When I went to pay the bill at the pub ,they automatically converted by tab to USD at a rate of $1.365 per Euro.I protested and asked to be charged in Euros.So the barman voided the USD transaction and attempted to process the bill in Euros,after some time he informed me that his machine would only accept my card in a USD transaction mode.My only option was to accept the charge in USD at $1.365,or pay cash,I payed cash.
The exact same circumstances happened at the Petrol station,the orginal USD transaction was voided by the clerk,he attempted to charge me in Euros and I was told his machine would not accept my CC except for a USD transaction .This time I did'nt have the cash to pay the charge and had to accept the same $1.365 conversion rate.
After this I always insisted that all subsequent CC transactions be conducted in Euros only and had no further problems.
This scam has the potential to be very expensive if you have a CC that charges an additional 3% over the converted rate.Instead of my $1.365 rate it would have been $1.39!
Apr 29th, 2005, 04:53 PM
#2
Join Date: Jan 2003
Posts: 11,244
Likes: 0
Received 0 Likes
on
0 Posts
Don't feel bad, this same thing happened to me last May when they charged my Credit Card and automatically did the conversion. At the time I didn't realize I was being scammed -- I thought it was just an estimate of the conversion rate, thinking I'll get the interbank rate plus 1% when I get my CC statement.
This happened at 2-3 other places, mostly around touristy areas.
I think the only recourse is to insist in being charged in Euros. I think you were lied to when they told you they could only charge your card in Dollars.
This happened at 2-3 other places, mostly around touristy areas.
I think the only recourse is to insist in being charged in Euros. I think you were lied to when they told you they could only charge your card in Dollars.
Apr 29th, 2005, 07:31 PM
#3
Join Date: Sep 2004
Posts: 45,322
Likes: 0
Received 0 Likes
on
0 Posts
Hello Lovejoy, I have read other post about this same situation.
And having a USAA MasterCard as you do it would really tick me off.
Have you talked to USAA about this situation? I am going to before I go to Italy again. It does seem to me though that travellers have had this kind of problem in Ireland more then any other European Country. Thanks for sharing your experiences with us.
And having a USAA MasterCard as you do it would really tick me off.
Have you talked to USAA about this situation? I am going to before I go to Italy again. It does seem to me though that travellers have had this kind of problem in Ireland more then any other European Country. Thanks for sharing your experiences with us.
Apr 29th, 2005, 10:20 PM
#4
Join Date: Dec 2003
Posts: 696
Likes: 0
Received 0 Likes
on
0 Posts
I would not blame the clerk who is trying to process your credit card. Chances are they do not know how to override the automatic system. I agree that it's a scam, but I'd remind people to be polite with the cashier/clerk/waiters.
Apr 30th, 2005, 07:04 AM
#5
Join Date: Dec 2003
Posts: 776
Likes: 0
Received 0 Likes
on
0 Posts
Also ran into this problem in the UK. I insisted that I be charged in pounds. None of the desk clerks knew how to do it. Had to get a manager to correct the problem.
If this happens again, try asking for a manager. They should know how to do it. If it is the owner, I'm sure they know how to charge in their native currency.
If this happens again, try asking for a manager. They should know how to do it. If it is the owner, I'm sure they know how to charge in their native currency.
Apr 30th, 2005, 08:54 AM
#6
I copied the text below from the VISA site; my reading of it is that the vendor MUST offer billing in $ or local. If you can get the vendor to put his refusal/incapability in writing, then VISA should be good for a refund of the difference.
What is Dynamic Currency Conversion?
Some merchants now offer to convert your bill into your home currency. This is called dynamic currency conversion and means the merchant—and not Visa—is converting the currency. As a consumer you may value knowing the exact price in your home currency at the point of sale but you should also know you may be charged extra for this service by the merchant. Visa requires that you are provided a meaningful choice at the point of sale and you have the right to buy your purchase in the local currency so that you do not incur any additional fees the merchant may assess. Visa also requires merchants offering this service to inform you of the exchange rate including any applicable commission being
What is Dynamic Currency Conversion?
Some merchants now offer to convert your bill into your home currency. This is called dynamic currency conversion and means the merchant—and not Visa—is converting the currency. As a consumer you may value knowing the exact price in your home currency at the point of sale but you should also know you may be charged extra for this service by the merchant. Visa requires that you are provided a meaningful choice at the point of sale and you have the right to buy your purchase in the local currency so that you do not incur any additional fees the merchant may assess. Visa also requires merchants offering this service to inform you of the exchange rate including any applicable commission being
Apr 30th, 2005, 10:12 AM
#7
Join Date: Dec 2003
Posts: 776
Likes: 0
Received 0 Likes
on
0 Posts
In addition to the extra you're charged by the merchant for this "service", remember VISA will soon begin to add on 1% to ANY charge made in a foreign (non-US) country. This applies whether the charge is in local currency or in US$. So far, MC has not announced adding this fee as well.
Apr 30th, 2005, 11:14 AM
#8
Original Poster
Join Date: Jan 2003
Posts: 507
Likes: 0
Received 0 Likes
on
0 Posts
Tomboy,Thanks for the info from the Visa site regarding DCC.Since I was using a MasterCard I looked for a similiar policy statement on their website ,but was unable to locate one.I have written a letter to them re. their policy and I will post their response when I receive it.
LoveItaly,I have not contacted USAA yet,but I plan too.
LoveItaly,I have not contacted USAA yet,but I plan too.
May 1st, 2005, 12:02 PM
#9
Join Date: Jan 2003
Posts: 5,271
Likes: 0
Received 0 Likes
on
0 Posts
They are full of it when they say they can't process the charge in local currency...the terminal clearly asks the merchant before completing the transaction did the customer give permission for the conversion.
I had fights with 2 merchants on the trip I finished today (01 May) to Ireland. In one case, in Killarney the clerk said the US amount is only an estimate...I insisted he bring over the manager and refused top do so. I signed the charge slip and wrote dynamic currency conversion not accepted and if they have the audacity to bill me in US dollars at their inflated conversion rate (the charge has not cleared my bank's web site yet) I will ask visa to return the charge to the merchant as unauthorized.
In another I was in a pub and again I was told the credit card terminal would not accdept a US credit card in Euro...the manager told me there was no way to override this...I told him to void the transaction and to answer no when the terminal asks does the customer wish to have the charge converted. He lied and said it did not ask. Well anyway, it wasn't a great amount and rather than argue, I told him the fee he was ripping me off with would be the waiter's tip...and told the waiter that if he didn't receive his tip, blame the manager for their refusal to follow the rules of the credit card association.
And yes this scam is spreading wildly through Ireland. I was on a Cosmos tour and told the tour director to tell the members of the tour about this scam so members would not continue to be ripped off; she told me she had never heard of such a scam.
I told several tour members to watch out for it every time it was pulled, and it was pulled constantly.
These merchants are just a den of thieves and liars.
I had fights with 2 merchants on the trip I finished today (01 May) to Ireland. In one case, in Killarney the clerk said the US amount is only an estimate...I insisted he bring over the manager and refused top do so. I signed the charge slip and wrote dynamic currency conversion not accepted and if they have the audacity to bill me in US dollars at their inflated conversion rate (the charge has not cleared my bank's web site yet) I will ask visa to return the charge to the merchant as unauthorized.
In another I was in a pub and again I was told the credit card terminal would not accdept a US credit card in Euro...the manager told me there was no way to override this...I told him to void the transaction and to answer no when the terminal asks does the customer wish to have the charge converted. He lied and said it did not ask. Well anyway, it wasn't a great amount and rather than argue, I told him the fee he was ripping me off with would be the waiter's tip...and told the waiter that if he didn't receive his tip, blame the manager for their refusal to follow the rules of the credit card association.
And yes this scam is spreading wildly through Ireland. I was on a Cosmos tour and told the tour director to tell the members of the tour about this scam so members would not continue to be ripped off; she told me she had never heard of such a scam.
I told several tour members to watch out for it every time it was pulled, and it was pulled constantly.
These merchants are just a den of thieves and liars.
May 11th, 2005, 11:48 AM
#11
Original Poster
Join Date: Jan 2003
Posts: 507
Likes: 0
Received 0 Likes
on
0 Posts
This is my follow up on my reply from MasterCard on DCC.
After first contacting USAA,I was routed to 1-800-MCASSIST,which was unable to help me.I finally got a number to a dept. in MasterCard titled "Customer Fullfilment."Here I was told that merchants MUST offer to conduct a foreign transaction in Local currency, in which MasterCard will handle the foreign currency conversion,or if the charge is converted into USD, on the spot ,the merchants Bank will handle it.Otherwise know as dynamic currency conversion.
The main point is ,if the merchant accepts MasterCard as payment they are required to offer you the choice.As I have shown in my own experience this is not always the case.
The person at MasterCard agreed that this was not always the case and would appreciate being informed of all transgressions of this Policy.
The number to call to report this is
1-800-300-3069 M-F 8-4:30CT It helps if you have the date.the merchants name,and the reference number for the transaction that appears on your statement.
After first contacting USAA,I was routed to 1-800-MCASSIST,which was unable to help me.I finally got a number to a dept. in MasterCard titled "Customer Fullfilment."Here I was told that merchants MUST offer to conduct a foreign transaction in Local currency, in which MasterCard will handle the foreign currency conversion,or if the charge is converted into USD, on the spot ,the merchants Bank will handle it.Otherwise know as dynamic currency conversion.
The main point is ,if the merchant accepts MasterCard as payment they are required to offer you the choice.As I have shown in my own experience this is not always the case.
The person at MasterCard agreed that this was not always the case and would appreciate being informed of all transgressions of this Policy.
The number to call to report this is
1-800-300-3069 M-F 8-4:30CT It helps if you have the date.the merchants name,and the reference number for the transaction that appears on your statement.
Thread
Original Poster
Forum
Replies
Last Post
Patrick
Europe
10
Jun 1st, 2004 08:20 AM
