olive_oil

I am planning a trip to Europe and working with a travel agent for the hotels. I have been reading some of the threads about DCC but I Figured I would not need to worry about it til I arrived in Europe.

The TA is located in Canada and I am in the USA. I just received an invoice for the deposit on my hotels. I like to pay with Amex (for the points) but the invoice encourages me to use VISA.

The invoice includes this statement:

"Please note that
XXXXXXXXXXX Tours has US$ VISA facilities. Using any other credit card
may involve foreign currency fees being charged by your credit card company"

I plan to call both companies before I pay but just wanted to run this by all yall. Is this something I need to be concerned about?

I originally posted this query under "other topics" but did not get much response. I hope no one minds the repost here.

WillTravel

The AMEX card does not allow dynamic currency conversion. Only VISA and MasterCard allow DCC. So that sentence does sound suspicious.

Find out what the charge in USD will be if you use VISA, and what the charge in Euros (presumably) will be if you use AMEX. Then find out what AMEX charges for its foreign currency transactions (I believe it's 2.5% over the interbank rate, but I can't say if that's true for all AMEX).

janisj

No that probably isn't anything to do w/ dynamic currency conversion. It just sounds like a Visa/TA marketing agreement. They probably have a relationship - visa being their card of choice and there may be reabtes between visa and the TA.

Essentially - "Use your visa and there aren't any added fees. Use another card and we can't make any guarantees" Any card will probably work the same, they'd just prefer you use the visa.

Dukey

I agree with Janis. DCC involves allowing the CC to make the currency conversion up front (from the local currency, in your case the Canadian TA's Dollars to your US Dollars) and at a less than favorable (to you) exchange rate RATHER than at the prevailing interbank rate.

It sounds to me as if the TA has an agreement with Visa just as many concerns have agreements with Amex.

Levying foreign currency exchange fees are not the same thing as DCC.

Carrybean

They might be urging you to use Visa for the same reason we no longer accept AX - their ever-rising merchant fees.

ira

Hi OO,

Ask the TA for the cost in Canadian dollars or Euro and in USD.

Then check the exchange rates.

AMEX charges 2% for currency conversion. MC and Visa charge 1%.

Your bank might add an additional 1-2 points for V or MC.

olive_oil

Thanks, all. It is just the deposit so I went ahead and used the amex as I do not have a visa. Might get one, though, based on what I have read here. I'll let you all know if there is anything surprising on the bill when it comes.