That awkward moment when they ask if you want to charge in $ or Euros....
Sep 19th, 2013, 08:30 AM
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That awkward moment when they ask if you want to charge in $ or Euros....
Just returned from a fabulous trip to Ireland, definitely will go back.
When traveling abroad I mostly withdrawal from ATM's as needed, however, the occasional VISA card charge brings the cashier question of 'do you want this charged in dollars or euros?'.
Which is best??
When traveling abroad I mostly withdrawal from ATM's as needed, however, the occasional VISA card charge brings the cashier question of 'do you want this charged in dollars or euros?'.
Which is best??
Sep 19th, 2013, 09:45 AM
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In theory, it is possible being charged in dollars would be better if they gave you a better exchange rate than your CC and your CC doesn't tack on a foreign service charge for any charge from abroad, no matter the currency.
IN practice, I don't know if that ever happens, although I think someone once said the DCC rate was only a couple percent they got charged.
Now I always get charged in the native currency, but I think I did a test last Fall with my AMex in Barcelona and had it charged in USD. It was a small museum entrance. I wanted to test something Amex had told me over the phone when I was warning them I might have charges from Spain, and it turns out they lied, Amex charges you a foreign service charge even if it is in USD, if from abroad. I thought I had read that and I wouldn't do it anyway, but I was curious.
I had not even asked them, the Amex clerk was trying to "give me advice" when I told them to expect charges from abroad so don't worry. She said that she could give me tips on how to avoid the foreign service charge (which is 2.7% from Amex). I said, yeah, how would that be? And she said, I'm not kidding -- if they offer to have it charged in USD, do that and you won't have one. I said, that is the dumbest thing I ever heard as even if that were true, their exchange rate would likely be worse than the 2.7 pct you charge. She literally didn't know what I was talking about (of course), this was some nonsensical thing she had been instructed to tell people.
And, as it turns out, it was a big fat lie anyway, as they do levy the 2.7 pct even if it were charged by DCC.
IN practice, I don't know if that ever happens, although I think someone once said the DCC rate was only a couple percent they got charged.
Now I always get charged in the native currency, but I think I did a test last Fall with my AMex in Barcelona and had it charged in USD. It was a small museum entrance. I wanted to test something Amex had told me over the phone when I was warning them I might have charges from Spain, and it turns out they lied, Amex charges you a foreign service charge even if it is in USD, if from abroad. I thought I had read that and I wouldn't do it anyway, but I was curious.
I had not even asked them, the Amex clerk was trying to "give me advice" when I told them to expect charges from abroad so don't worry. She said that she could give me tips on how to avoid the foreign service charge (which is 2.7% from Amex). I said, yeah, how would that be? And she said, I'm not kidding -- if they offer to have it charged in USD, do that and you won't have one. I said, that is the dumbest thing I ever heard as even if that were true, their exchange rate would likely be worse than the 2.7 pct you charge. She literally didn't know what I was talking about (of course), this was some nonsensical thing she had been instructed to tell people.
And, as it turns out, it was a big fat lie anyway, as they do levy the 2.7 pct even if it were charged by DCC.
Sep 19th, 2013, 10:21 AM
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There are only two credit cards offered by Amex the do not incur foreign transaction fees, the Platinum and Centurion cards. All the others are fair game.
The DCC exchange rate can be outrageous, as the owner of the DCC scam (created and commercialized by FEXCO, an Irish company) receives a percentage of the transaction, all for showing you your purchase price in your home currency. Some people actually refer to the DCC scam as a financial service (followed by a laugh track, no doubt).
http://www.huffingtonpost.com/christ...b_3477987.html
http://thepointsguy.com/2013/07/just...cy-conversion/
The DCC exchange rate can be outrageous, as the owner of the DCC scam (created and commercialized by FEXCO, an Irish company) receives a percentage of the transaction, all for showing you your purchase price in your home currency. Some people actually refer to the DCC scam as a financial service (followed by a laugh track, no doubt).
http://www.huffingtonpost.com/christ...b_3477987.html
http://thepointsguy.com/2013/07/just...cy-conversion/
Sep 19th, 2013, 11:04 AM
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Actually at the DutyFree shop at CDG a lovely young woman explained that when using my CC there it was to my advantage to charge in US $ and she was right, as the slip showed the difference/exchange rates and it was less in $. Not sure if it being the DutyFree shop was a factor in the better rate....
Also that was when the credit card I had at that time was levying the 3% upcharge for foreign currency, so I also saved on that.
Also that was when the credit card I had at that time was levying the 3% upcharge for foreign currency, so I also saved on that.
Sep 19th, 2013, 11:41 AM
#12
Sorry, but I agree there is absolutely nothing awkward about any of it. And what CAN be awkward is when they say they are unable to charge you in the local currency (I've had this happen several times) and that is when you call the manager or you do not make the purchase.
As to those foreign currency charges, depends on what you are getting in return and for some of us what we ARE getting is worth the extra charge.
BTW does anyone really believe that a CC issuer is eating these charges?
As to those foreign currency charges, depends on what you are getting in return and for some of us what we ARE getting is worth the extra charge.
BTW does anyone really believe that a CC issuer is eating these charges?
Sep 19th, 2013, 11:44 AM
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"Also that was when the credit card I had at that time was levying the 3% upcharge for foreign currency, so I also saved on that." I think you'd better check you CC statement. You were charged in USD, but the bank transaction was in Euros since the transaction was done in the France, not the US.
Sep 19th, 2013, 12:06 PM
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Hmm, I don't think that they did, but I could very well be wrong! That transaction is long done and gone since it was last October and since then I have secured a card that does not include extortion. 
Sep 19th, 2013, 01:09 PM
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I love the Irish. I hate this DCC nonsense. We didn't have a problem in Dublin this last stay, but I was ready "to go in" fighting.
The sales people may honestly have been told that "this is a service to the customer." It is YOUR job to know they've been delivered a lie.
The sales people may honestly have been told that "this is a service to the customer." It is YOUR job to know they've been delivered a lie.
Sep 19th, 2013, 01:35 PM
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You have to remember that in many if not most cases, the clerks you deal with are students who simply are told what buttons to push on the terminals and have no idea about foreign exchange rates, foreign transaction fees and the like.
The good thing here is that more and more because of the bad publicity, do indeed ak although sometimes they when naively asked which is best give bad advice because they don't know what they're talking about. 99.9% of the time, you lose when accepting this scam which is called dynamic currency conversion or dcc for short.
As noted above, it becomes awkward when they don't ask and present you a sales slip which has already been dcc'd. Then, of course, there is sometimes a language problem, sometimes a set of lies (I can't undo it, the terminal only al allows me to charge you in your currency, it's a good exchange rate, you won't have to pay a foreign currency fee yada yada yada).
But, the one thing you don't do no matter what. You don't let them play this game. If they refuse to un dcc the charge, simply circle the amount in local currency, cross out the amount in your country and write local currency option not offered. (Local currency option must be offered according to mc/visa merchants regs_. Then when you get home, dispute the charge. One of two things will happen. Either your bank will eat the difference (and some do for relatively small amounts) or the bank will have to charge the charge back to the merchant hopefully inflicting a fine on them.
Incidentally, one thing in the thread I don't understand. To the best of my knowledge, Amex does not allow merchants to use dcc.
The good thing here is that more and more because of the bad publicity, do indeed ak although sometimes they when naively asked which is best give bad advice because they don't know what they're talking about. 99.9% of the time, you lose when accepting this scam which is called dynamic currency conversion or dcc for short.
As noted above, it becomes awkward when they don't ask and present you a sales slip which has already been dcc'd. Then, of course, there is sometimes a language problem, sometimes a set of lies (I can't undo it, the terminal only al allows me to charge you in your currency, it's a good exchange rate, you won't have to pay a foreign currency fee yada yada yada).
But, the one thing you don't do no matter what. You don't let them play this game. If they refuse to un dcc the charge, simply circle the amount in local currency, cross out the amount in your country and write local currency option not offered. (Local currency option must be offered according to mc/visa merchants regs_. Then when you get home, dispute the charge. One of two things will happen. Either your bank will eat the difference (and some do for relatively small amounts) or the bank will have to charge the charge back to the merchant hopefully inflicting a fine on them.
Incidentally, one thing in the thread I don't understand. To the best of my knowledge, Amex does not allow merchants to use dcc.
Sep 19th, 2013, 02:40 PM
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There should be nothing awkward about it, always pay in the currency of the country you are in.
I was in Ireland this summer and encountered this in a few places, I always pre-empted it by stating I wanted it in euro as I passed over my card. Then out of curiosity I asked if they were offering it. No one pushed but a couple of people tried to tell us it was to our benefit.
In Harrod's in London they also had DCC and didn't exactly push but tried to explain how it was to our benefit as Harrod's was giving us a better rate and sucking up the cost as a benefit to their customers. I explained to the saleslady why I didn't think this would be true!
I have encountered this in the U.S. also, in Hawaii, I was asked if I wanted to pay in Canadian $$ rather than American. This was years ago before I read about DCC on Fodor's so like a sucker I said yes. Never again and I tell everybody.
xyc123, not sure if that is true about Amex, as I was using my Amex card a lot on my last trip and if I remember correctly that purchase years ago on Maui where I agreed to DCC was on Amex.
I was in Ireland this summer and encountered this in a few places, I always pre-empted it by stating I wanted it in euro as I passed over my card. Then out of curiosity I asked if they were offering it. No one pushed but a couple of people tried to tell us it was to our benefit.
In Harrod's in London they also had DCC and didn't exactly push but tried to explain how it was to our benefit as Harrod's was giving us a better rate and sucking up the cost as a benefit to their customers. I explained to the saleslady why I didn't think this would be true!
I have encountered this in the U.S. also, in Hawaii, I was asked if I wanted to pay in Canadian $$ rather than American. This was years ago before I read about DCC on Fodor's so like a sucker I said yes. Never again and I tell everybody.
xyc123, not sure if that is true about Amex, as I was using my Amex card a lot on my last trip and if I remember correctly that purchase years ago on Maui where I agreed to DCC was on Amex.
Sep 19th, 2013, 03:03 PM
#20
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StCirq is right. It's not awkward, it's a squeeze play. And the young clerks have nothing to do with it. A good lesson to learn in the service trade is that sometimes the client is smarter than you are
