Credit Card Warning
 

I recently made a purchase with a Visa card at the Rome airport and the clerk mistakenly rang up the wrong amount as Euro 155.40. She immediately recognized her mistake and completed a credit transaction for the same amount. <BR><BR>When I got home (USA) I checked my transactions on line and discovered that the first charge was recorded as Euro 155.40 = $166.02 and the credit transaction was recorded as Euro 155.40 = $162.74. I had lost $3.28 because the extra fee that Visa has built into their conversion rate for out of country charges is apparently not built into their rate when issuing a refund (credit). I notified my bank (I use a Visa card from a bank that doesn't charge any additional fees thanks to your advice on this board) and they immediately issued me a credit for $3.30.<BR><BR>Be aware that you may be losing 2% on refunds (credit transactions) and I assume that this would include VAT refunds that are issued as credits to your Visa. <BR><BR>Richard

That's unfair that the fee can be charged to one's account but not refunded automatically. I suppose the credit card companies are hoping that not too many customers will notice this. Thanks for the advice.

If it were me, I would immediately call the credit card company and demand a full credit.<BR><BR>This is the policy on credit card transactions. Visa/MC add 1% to credit card purchases above internet rate and subtract 1% on credit card credits. Your bank may then add or subtract an additional 2%....of course there is also the question of credit card fluctuations day after day.<BR><BR>What the clerk should have done is void the transaction.....before anybody says anything there is nothing to be gained by the merchant in doing this as on their end the transaction is a transaction in Euro, they get the purchase in Euro and the credit in Euro so they break even. It is MC/Visa and the bank that make money on the transaction.<BR><BR>The policies are just a fact of life in credit card transactions. They are laid out up front so if this happens to you, just make sure the transaction is voided rather than credited.<BR><BR>But I am almost willing to bet that if you call customer service at your bank, they will refund the difference.<BR><BR>(or write them a letter and claim a billing error dispute in line with the US truth in credit act that you received a charge and a credit you did not authorize....according to visa/mc rules they will have to remove both from your account and charge (or credit) them back to the merchant.<BR><BR>In any event, as I said, you will almost certainly receive a full credit back.

Richard got a refund from his credit card company and wow ended up 2 cents to the good. Don't you people who reply read?<BR><BR>Thanks Richard--good info to have. Glad it worked out for you.

First, thanks, Try Reading, for saving my sanity. I thought maybe I was misreading the original post.<BR>Second, thanks, Richard, for the information.<BR>Perhaps because I still believe in the inherent goodness of man, I really don't think the credit card companies are trying to pull a fast one. I think it's just the way the program was set up, especially since Richard said there was no problem getting the credit.

If the credit transaction takes place months later, how can you tell how much you're being ripped off? The conversion rate is constantly changing.