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Alert! Hotel Duomo in Orvieto Charges in USD!

Alert! Hotel Duomo in Orvieto Charges in USD!

Jun 10th, 2005, 05:54 AM
Join Date: Jul 2004
Posts: 224
This happened to me in Spain at least once if not more. I thought it is odd but did not realize till now that I might have overpaid a little.

I do not understand how does one end up paying more if charged in USD? Can someone please explain that once more?
zbjoon is offline  
Jun 10th, 2005, 06:22 AM
Join Date: Jan 2003
Posts: 13,461
zbjoon, the rate used by the merchant to convert the local currency to dollars can be higher than the rate that would be used by Mastercard or VISA.
Nikki is offline  
Jun 10th, 2005, 06:26 AM
Join Date: Dec 2003
Posts: 776
The merchant uses an inflated conversion rate for USD. So if the official rate is $1.22 to 1 euro, they may charge you $1.28 for 1 euro (5% increase). So that 200 euro hotel stay will cost $256 instead of $244 (not including 1% fee from Visa/MC), with the difference as profit for the merchant. Remember if you use Visa, they will still tack on another 1% for any out of the country use even if posted in USD. So with a VISA card, they difference will be 5%.
nibblette is offline  
Jun 10th, 2005, 06:54 AM
Join Date: Jul 2004
Posts: 224
Thanks for the answers.

nibblet, I understand well now after reading your post and looking at the numbers. This actually can be costly to the traveler if it happens a lot for long trips. Believe it or not I thanked the lady manager in the hotel in Spain and told her it is great that they charged me in USD so I know right away!!! The hotel was worth it though.
zbjoon is offline  
Jun 10th, 2005, 08:50 AM
Join Date: Nov 2004
Posts: 6,260
I suspect that if this practice became more widespread..I mean REALLY widespread, we might actually see a "reaction" from the card-issuing banks since this practice cuts into their revenue.
Intrepid1 is offline  

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