Robert2533

There is a great article in today's Washington Post regarding the new credit card "scam" going on in Europe, and the USA, which everyone should read. It's the best one to date detailing the "dynamic currency conversion" that seems to be gaining speed. This is a "must read" for anyone traveling today.

"Faith and begorrah! Was it the work of currency conversion leprechauns? On a recent trip to Ireland, we were astonished to see our credit card purchases ringing up in U.S. dollars at most tourist-related merchants, restaurants and hotels. Clerks and wait staff told us their machines had... Hotels..."

http://www.washingtonpost.com/wp-dyn...r=emailarticle

Suki

Thanks for posting the link. The article was very informative.

creek28

Robert,
Thanks for posting the great link. I'm an MBNA cardholder and I'm going to change cards as soon as possible!

HKP

Very useful -- and about time the media started to cover this in enough detail to arm travelers. HOWEVER, other than changing cards to avoid the worst-offender banks, what can realistically be done? I would like to know how successful people have been in challenging a vendor (hotel, restaurant, etc.) on this issue -- either by saying "bring me the bill in Euros" or "void this and re-run the bill in Euros"! What I'm hearing is that the vendors will almost always protest "the machine does that automatically" if you're using a US card and refuse.

BTilke

The dateline on the linked article was July 31st, not August 14th...I think we already had a thread going about this article. Maybe someone can top it.

kopp

Thanks for the link, Robert.

concerned_4_u_all

Useful information.
Thank you.

Wayne

I don't know if indeed the U.S. card automatically sets up the DCC transaction in their computer, but if it does, that's fraud, plain and simple. Someone with more legal experience than I should be looking at this and finding out exactly how the scheme works.

bardo1

Thanks for the timely info. Using a credit card just for hotel and meals could tack an extra few hundred dollars to the cost of a European getaway.

My credit union doesn't charge any ATM fees, conversion fees for foreign withdrawals, and has a fair exchange rate. I think I'll stick with cash.

merrittm

Just checked my credit card companies. Citibank charges a 3% fee for foreign currency transactions, but does NOT charge the fee if it is done in USD. MBNA charges a 3% fee on ANY foreign transaction regardless of whether it is Dynamic Currency Conversion (DCC) or not. (By the way, both these cards were 1 or 2% last year). Any one have GOOD cards for foreign travel?

em111

I just saw a segment on this Saturday. They said that 3% was pretty standard.

Marilyn

It was my understanding that Capitol One was not charging the extra percent, and we were planning to use our new CO card on our upcoming trip. Any experience with Capital One and the DCC rip-off?

Marilyn

Oops, never mind. Should have read the article first! (The author got an excellent rate with his Capital One Visa.)

em111

Just called amex - it's 2% - not bad.

Robert2533

I just checked my Bank of American Business Visa statement for July. The bank is charging .01 (1/10th) percent for what they call 'International Transaction Fee Debit'. It's a lot better than the 3.5 to 4.0% being charged in the DCC operation. B of A has yet to charge any transaction fees on my personal or our US Airways VISA accounts.

kram

Some basics - DCC will convert forex transactions to your home currency at bad rates. Its got nothing to do with your issuing bank.

On top of it, the issuing bank sometimes adds more charges : best case, no charges. Middle ground - only for foreign currency and not for DCC (as you're anyway screwed on exchange rates). Worst, x% on all whether DCC or in foreign currency.

So, the customer has to do two things. First, choose a card that does not charge extra on foreign transactions.
Second step - stop DCC at the merchant.

Intrepid1

Well, I'm afraid that B of A DOES charge "foreign currency conversion" fees on MY USAirways Visa card and always has.

Keith

On my recent trip to Scotland, Capital One and Merrick charged no fees and Providan charged 1%.

The GBP Exchange Rate spanned from 1.75882 to 1.78035 on different days.

Keith

McShane

We are just back from Ireland and were irritated to find that most tourist-related merchants do indeed convert to dollars at a very unfavorable rate when they run the credit card. After asking a couple of places to give me an immediate credit, I learned to ask first if they could please run the charge through in euros, not dollars, or to simply pay cash.

One slip (that I refused to sign) at the Beehive Craft shop on Achill Island even had a little disclaimer that I had been offered a choice of currencies and chose dollars! The nice people at the shop had no idea what I was concerned about when I asked for a credit so that I could pay cash in euros.

The net result (a happy one for my husband) is that I spent less money because I was too irritated at the forced conversion.

Robert2533

This is a major scam on the consumer. And yes, B of A, as well as other banks do charge a "foreign currency conversion" fee on my business account, but not on my personal or US Air Visa accounts.

They did reverse the fees on the last statement on the business account but said they wouldn't do it in the future. That means that I will not use the B of A business credit card while traveling in Europe, only the Amex and my personal accounts, which appear to be exempt from this charge, at least for now.