Avis Currency Conversion Scam
Oct 7th, 2013, 03:19 PM
#1
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Avis Currency Conversion Scam
Just want to make people aware of a scam that Avis car rental has in France and probably other countries. Without informing the customer or getting customer agreement Avis does the foreign currency exchange instead of allowing your credit card company to do it, as is the usual practice, and CHARGES A HEFTY SURPRISE FEE FOR THE "SERVICE".
I recently rented a luxury car (BMW, automatic, diesel) for 16 days in Montpellier, France. The rental fee was substantial but I am happy to pay the agreed upon charge. I used my Capital One MasterCard specifically because Capital One has no foreign currency exchange fee for purchases. For ALL other purchases in foreign countries around the world, hotels, restaurants, merchandise, the credit card company always does the foreign currency exchange when preparing the monthly statement.
My entire transaction was in Euros, with NO mention that Avis would do the currency exchange to dollars.
In this case, I found that my credit card had been charged an extra, unexplained 7%.
After many email exchanges, Avis "customer service" sent me a copy of section 28 of some Avis "rules", that I was never informed about (and not part of the rental agreement) which contains some amazing, blatant stuff. "Charges will be converted --by us unless you submit a written request in advance to have the currency conversion performed by your card issuer." Unless you submit a written request in advance to something you are totally unaware of!!
Further this section 28 says " Our conversion --- will incorporate a processing charge no higher than 3% ---" Well, I guess I'm special; they charged me 7.03% instead of "no higher than 3%".
The point is this: Hotels and restaurants could adopt a "policy", undisclosed to customers, that they will do the currency conversion and then surprise their customers with charges of ...(why stop at 7.03%? ) ... 15% or whatever.
Avis must not be allowed to continue to get away with this scam.
I recently rented a luxury car (BMW, automatic, diesel) for 16 days in Montpellier, France. The rental fee was substantial but I am happy to pay the agreed upon charge. I used my Capital One MasterCard specifically because Capital One has no foreign currency exchange fee for purchases. For ALL other purchases in foreign countries around the world, hotels, restaurants, merchandise, the credit card company always does the foreign currency exchange when preparing the monthly statement.
My entire transaction was in Euros, with NO mention that Avis would do the currency exchange to dollars.
In this case, I found that my credit card had been charged an extra, unexplained 7%.
After many email exchanges, Avis "customer service" sent me a copy of section 28 of some Avis "rules", that I was never informed about (and not part of the rental agreement) which contains some amazing, blatant stuff. "Charges will be converted --by us unless you submit a written request in advance to have the currency conversion performed by your card issuer." Unless you submit a written request in advance to something you are totally unaware of!!
Further this section 28 says " Our conversion --- will incorporate a processing charge no higher than 3% ---" Well, I guess I'm special; they charged me 7.03% instead of "no higher than 3%".
The point is this: Hotels and restaurants could adopt a "policy", undisclosed to customers, that they will do the currency conversion and then surprise their customers with charges of ...(why stop at 7.03%? ) ... 15% or whatever.
Avis must not be allowed to continue to get away with this scam.
Oct 7th, 2013, 05:39 PM
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This isn't a scam. This happens many, many places and is perfectly legal. The places that do it (Harrod's in London is one of many) will offer to conduct your transaction in your home currency - and you get slammed with a fee plus a commission charge. While underhanded, it's unfortunately not illegal.
In your case, my guess is you indeed got charged a 3% processing charge - and then the bank they used charged the additional 4.03% on your bill.
Happened to me once - at Harrod's - I got asked and answered before thinking. I never made that mistake again. Stick with whatever your bank is going to charge; don't let businesses do you this "favor".
In your case, my guess is you indeed got charged a 3% processing charge - and then the bank they used charged the additional 4.03% on your bill.
Happened to me once - at Harrod's - I got asked and answered before thinking. I never made that mistake again. Stick with whatever your bank is going to charge; don't let businesses do you this "favor".
Oct 7th, 2013, 05:45 PM
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I hit "post" before I edited myself...sorry...I will say that companies can generally hide lots of stuff in the fine print and say it's on you when something like this happens. I imagine "it's in the rental agreement" covers their behinds. You know now to stay away from Avis and to check for this sort of stuff whenever you rent again. I am sorry that happened, but it could've been a lot more - if you'd said 17% I don't know that I would've been surprised!
Also remember that contracts are different in different countries, and how they apply to you can vary according to whether or not you're a citizen of that country. Familiar companies overseas aren't always the same operations we know here - and Avis may even be franchised (I don't know if they are or not), so that throws yet another monkey wrench in the works.
Also remember that contracts are different in different countries, and how they apply to you can vary according to whether or not you're a citizen of that country. Familiar companies overseas aren't always the same operations we know here - and Avis may even be franchised (I don't know if they are or not), so that throws yet another monkey wrench in the works.
Oct 8th, 2013, 04:26 AM
#6
Well, actually it does sound like a scam. If the fact they will use DCC is buried in the fine print and not mentioned when you sign the paperwork it sure looks like a scam to me. Thanks for the warning.
Oct 8th, 2013, 05:56 AM
#8
" Avis "customer service" sent me a copy of section 28 of some Avis "rules", that I was never informed about (and not part of the rental agreement) "
Seems that reading the rental agreement would not have helped. I checked the Avis web site - no sign of any rules. Scam.
Seems that reading the rental agreement would not have helped. I checked the Avis web site - no sign of any rules. Scam.
Oct 8th, 2013, 06:13 AM
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OP is spamming up all the travel forums with his tirade. I don't expect him to come back and answer any questions.
Anyhoo...
http://www.avis.dk/assets/pdf/DK_Wor...Conditions.pdf
Section 22 Avis Preferred Service:
<i>22. Charge Card Reserve
A. You acknowledge that you have been informed that your credit, up to an amount of the estimated total charges due under this Agreement, as indicated on the rental document, based on your representations about this rental, may be set aside or reserved by the card issuer of up to one of the two charge cards which you have listed in your Enrollment Profile for payment of your car rental bills; or, if you use a debit card, funds in the account to which that card is linked may be set aside for the greater of the amount of the estimated total charges due under this Agreement, based on your representation about this rental, as indicated on the rental document or the deposit amount indicated on signs at the location at which you rent at the time of rental. You consent to the reservation or setting aside of that estimated total amount at the time of commencement of the rental. You understand that we will authorize the release of any excess reserve or set aside upon the completion of your rental, and that your card issuer’s rules apply to your credit line being credited for such excess; and may not be immediately released by your card issuer.
B. You further understand and agree that we will bill the card issuer according to the order of your selected billing priority as stated on your Enrollment Profile. Avis’ credit card policies are also fully disclosed at avis.com. We may receive card number information from the financial institution that issued your charge card. Should you not want this information sent to us, you will advise Avis in writing at 300 Centre Pointe Drive, Virginia Beach, VA 23462.
C. If you use a credit or charge card that is issued by a financial institution outside of the United States and your charges are billed to us in a currency other than U.S. Dollars, the full amount of your charge will be converted to the card account’s billing currency unless you submit a written request in advance to have the currency conversion performed by your card issuer. The conversion will be based on a conversion rate published by Reuters and will incorporate a processing charge no higher than 3% applied to all amounts relating to the transaction. This charge will replace the currency conversion processing charge applied by your card issuer. You understand that your card issuer has a currency conversion process; that you have chosen not to use your card issuer’s currency conversion process; and that you will have no recourse against your card issuer with respect to any matter related to the currency conversion or disclosure thereof. </i>
And:
<i>Terms that apply to each rental
4 The terms and conditions of each Avis Preferred Rental Agreement will incorporate (in the following order of priority):
(i) these Terms and Conditions;
(ii) any preferences in relation to matters such as car type, payment method, invoicing preference and the purchase of additional products or services, along with any terms and conditions specified in the relevant rate/product terms and conditions and made available to you at time of reservation (including restrictions on refunds and changes to bookings, and additional charges);
(iii) to the extent that preferences are not specified in the rate/product terms and conditions, the preferences you select whilst making your booking;
(iv) to the extent that preferences are not specified in the rate/product terms and conditions or selected during booking, the preferences you select in your Customer Profile; and
(v) any additional terms and conditions agreed by the Avis Licensee and you in relation to the purchase of additional products and services before or during the Avis Preferred rental, or on return of the Vehicle.</i>
Anyhoo...
http://www.avis.dk/assets/pdf/DK_Wor...Conditions.pdf
Section 22 Avis Preferred Service:
<i>22. Charge Card Reserve
A. You acknowledge that you have been informed that your credit, up to an amount of the estimated total charges due under this Agreement, as indicated on the rental document, based on your representations about this rental, may be set aside or reserved by the card issuer of up to one of the two charge cards which you have listed in your Enrollment Profile for payment of your car rental bills; or, if you use a debit card, funds in the account to which that card is linked may be set aside for the greater of the amount of the estimated total charges due under this Agreement, based on your representation about this rental, as indicated on the rental document or the deposit amount indicated on signs at the location at which you rent at the time of rental. You consent to the reservation or setting aside of that estimated total amount at the time of commencement of the rental. You understand that we will authorize the release of any excess reserve or set aside upon the completion of your rental, and that your card issuer’s rules apply to your credit line being credited for such excess; and may not be immediately released by your card issuer.
B. You further understand and agree that we will bill the card issuer according to the order of your selected billing priority as stated on your Enrollment Profile. Avis’ credit card policies are also fully disclosed at avis.com. We may receive card number information from the financial institution that issued your charge card. Should you not want this information sent to us, you will advise Avis in writing at 300 Centre Pointe Drive, Virginia Beach, VA 23462.
C. If you use a credit or charge card that is issued by a financial institution outside of the United States and your charges are billed to us in a currency other than U.S. Dollars, the full amount of your charge will be converted to the card account’s billing currency unless you submit a written request in advance to have the currency conversion performed by your card issuer. The conversion will be based on a conversion rate published by Reuters and will incorporate a processing charge no higher than 3% applied to all amounts relating to the transaction. This charge will replace the currency conversion processing charge applied by your card issuer. You understand that your card issuer has a currency conversion process; that you have chosen not to use your card issuer’s currency conversion process; and that you will have no recourse against your card issuer with respect to any matter related to the currency conversion or disclosure thereof. </i>
And:
<i>Terms that apply to each rental
4 The terms and conditions of each Avis Preferred Rental Agreement will incorporate (in the following order of priority):
(i) these Terms and Conditions;
(ii) any preferences in relation to matters such as car type, payment method, invoicing preference and the purchase of additional products or services, along with any terms and conditions specified in the relevant rate/product terms and conditions and made available to you at time of reservation (including restrictions on refunds and changes to bookings, and additional charges);
(iii) to the extent that preferences are not specified in the rate/product terms and conditions, the preferences you select whilst making your booking;
(iv) to the extent that preferences are not specified in the rate/product terms and conditions or selected during booking, the preferences you select in your Customer Profile; and
(v) any additional terms and conditions agreed by the Avis Licensee and you in relation to the purchase of additional products and services before or during the Avis Preferred rental, or on return of the Vehicle.</i>
Oct 8th, 2013, 09:58 AM
#10
"http://www.avis.dk"
.dk = Denmark. The OP rented in France. And if you had to dig around on a Danish site to find anything relevant, it's hardly reasonable to expect an average renter to find it. Also, it is not the same as the "rules" the OP quoted, as his was from a Section 28.
"If you use a credit or charge card <b>that is issued by a financial institution outside of the United States</b> and your charges are billed to us in a currency other than U.S. Dollars, the full amount of your charge will be converted to the card account’s billing currency" - emphasis added.
The OP used a Capital One card. Last I checked they are INside the US.
In any case, the more people made aware of this the better, whether or not you call it a scam.
.dk = Denmark. The OP rented in France. And if you had to dig around on a Danish site to find anything relevant, it's hardly reasonable to expect an average renter to find it. Also, it is not the same as the "rules" the OP quoted, as his was from a Section 28.
"If you use a credit or charge card <b>that is issued by a financial institution outside of the United States</b> and your charges are billed to us in a currency other than U.S. Dollars, the full amount of your charge will be converted to the card account’s billing currency" - emphasis added.
The OP used a Capital One card. Last I checked they are INside the US.
In any case, the more people made aware of this the better, whether or not you call it a scam.
Oct 8th, 2013, 10:02 AM
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Doesn't matter. The international agreement is the same with the country-specific information called out as necessary.
You would have realized that if you read the second page of the pdf I posted.
You would have realized that if you read the second page of the pdf I posted.
Oct 10th, 2013, 07:11 AM
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I am the OP. I have not given any misleading information.
1. My entire transaction (rental agreement and receipt) was in Euros (not USD).
2. There was never any mention of Avis doing the currency exchange. Nor was I given anything that even mentioned it.
3. I used my Capital One card specifically because Capital One does not charge any foreign transaction fee. And they did not in this case. The charge was made by Avis.
4. Avis customer service told me that they had charged 7.03%. Since I did not (do not) know what exchange rate Avis used, I could not have calculated what their fee was.
5. My account info with Avis Preferred has a box for authorizing Avis to do the currency exchange. It is NOT checked. I did not uncheck it. I would never have checked it because there is an explanation by it that says Avis will charge a fee ... maximum 3%. Since I have credit cards that charge no fee, I would have agreed to pay 3%.
6. In spite of the fact that Avis rules say a maximum of 3%, the Montpellier franchisee charged me 7.03%.
7. The Montpellier franchisee probably thought that since I had rented a luxury car for 16 days I probably would not notice a surprise, unauthorized fee of 7.03% added to my bill ... after I had left France. He also probably thought "This guy is an American and we won't ever see him again and he can't get at us to get a refund.
8. OK, so it appears that Avis has a rotten franchisee in Montpellier. The REALLY frustrating part is that Avis "customer service" (presumably here in the US) takes a HARD NOSE approach ... won't say "We're sorry Mr. Slay. Since you did not authorize this charge, we will refund it to you." Instead, they basically say, "It is our policy. The file is closed."!!!!
That makes it an AVIS SCAM.
1. My entire transaction (rental agreement and receipt) was in Euros (not USD).
2. There was never any mention of Avis doing the currency exchange. Nor was I given anything that even mentioned it.
3. I used my Capital One card specifically because Capital One does not charge any foreign transaction fee. And they did not in this case. The charge was made by Avis.
4. Avis customer service told me that they had charged 7.03%. Since I did not (do not) know what exchange rate Avis used, I could not have calculated what their fee was.
5. My account info with Avis Preferred has a box for authorizing Avis to do the currency exchange. It is NOT checked. I did not uncheck it. I would never have checked it because there is an explanation by it that says Avis will charge a fee ... maximum 3%. Since I have credit cards that charge no fee, I would have agreed to pay 3%.
6. In spite of the fact that Avis rules say a maximum of 3%, the Montpellier franchisee charged me 7.03%.
7. The Montpellier franchisee probably thought that since I had rented a luxury car for 16 days I probably would not notice a surprise, unauthorized fee of 7.03% added to my bill ... after I had left France. He also probably thought "This guy is an American and we won't ever see him again and he can't get at us to get a refund.
8. OK, so it appears that Avis has a rotten franchisee in Montpellier. The REALLY frustrating part is that Avis "customer service" (presumably here in the US) takes a HARD NOSE approach ... won't say "We're sorry Mr. Slay. Since you did not authorize this charge, we will refund it to you." Instead, they basically say, "It is our policy. The file is closed."!!!!
That makes it an AVIS SCAM.
Oct 10th, 2013, 02:59 PM
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reply to Thursdaysd: Yes, and Capital One has sent me a letter with questions and request for all documents which I will send to them promptly. I greatly regret having to go that route. Avis SHOULD (but won't) cheerfully refund to me the unauthorized charge. On the few occasions when I have slipped up and not paid credit card bills or other bills by the due date, a call to their customer service people always gets a cheerful reply of "We understand and we will refund to you (or not charge) any late fees or penalties" And that is just typical of what we have come to expect of good customer service in a competitive environment. Avis has not yet gotten the word that there is such a thing as customer service. They still take the old-fashioned defensive posture that the company is never wrong. I never intended to make this a saga about ME or my case, I just wanted to warn people about a scam that I had never encountered, never heard of until this incident. It is just intended as a heads-up warning of something to watch out for.
Oct 16th, 2013, 04:38 AM
#20
>>>If the fact they will use DCC is buried in the fine print and not mentioned when you sign the paperwork it sure looks like a scam to me.<<<
Hertz does the same thing. It's not a scam. It's in their contracts and you can't opt out of it. By renting from them, you are agreeing to DCC. The way to avoid it if you want to rent directly with them, is to prepay.
Most people don't bother to read the T&C before booking or the contract.
Hertz does the same thing. It's not a scam. It's in their contracts and you can't opt out of it. By renting from them, you are agreeing to DCC. The way to avoid it if you want to rent directly with them, is to prepay.
Most people don't bother to read the T&C before booking or the contract.
