Myer

Just came back from Provence and Paris and while I'm writing a trip report and reviewing photos I just thought I'd bring some things to your attention.

Last week I started a thread describing my experiences with the Andrews Globe Trek Chip & PIN credit card. You can do a search for that one.

Today something else.

We stayed in three different hotels. For these charges I used a CapitalOne card since there's no foreign currency transaction fee.

A couple of days after returning I logged on to my CapitalOne account and saw the transactions. Interestingly they didn't show an exchange rate so I figued them out.

Two were ok but the third calculated to 1.305 when other purchases I made that day on a different card were shown as 1.26. Not big bucks but still about $30 US.

I called CapitalOne and they told me the transaction was put through in US dollars.

I emailed the hotel and told them I didn't notice it at the time of checkout and if I had I wouldn't have allowed it. In Europe it's Euros.

To my surprise they responded quickly and informed me they were under the impression the bank (?) they deal with was giving customers a good rate. The said they would investigate.

A couple of days later they responded and informed me that if I emailed them a copy of my credit card statement and some receipts that showed the Euro amount for tranactions on the exact same day the company that handles their transactions would refund me 150% of the difference.

I was quite surprised so I had my wife read the email and she read it the same way I did.

I sent what they asked for yesterday evening and received a response this morning that their financial instritution would refund my account the 150% (this was now indicated in actual dollars) withing 72 hours.

Of course, I don't have the credit yet but just wanted to let you know to look out for this additional "customer service".

bilboburgler

that is good service, well done for mentioning

amer_can

What a great comment..so unlike the negative ones to which we are so often exposed...I have always had good experiences with hotels/credit/flights etc. and will surely continue to do so..Mostly people who are patient, polite and have back up to complaints are usually treated with respect and cooperation..

flanneruk

You've been the victim of a thing called Dynamic Currency Conversion.

The merchant is supposed to process the transaction in his currency, or offer you the choice between processing in yours and his.

Processing in yours almost always makes the merchant more money, but it isn't always clear whether failing to offer you the choice is because he's dishonest or because there's been a foulup if a poorly-briefed clerk handles the transaction. Some proprietors might not understand all this anyway.

In this case, it could be either.

Dukey1

I was recently in London in a hotel I have used in the past. I told them specifically at check-out/bill settlement that I wanted the charge put through in GBP. The desk clerk responded that it couldn't be done. I was amazed at this response. I responded that if it was not done I would annotate the hotel's copy of the charge slip with the usual "refused to charge in local currency."

BINGO! The manager is summoned and what do you know? We suddenly learn just how to do it right.

What can be more difficult is when you rent a car (the whole thing was reportedly dreamed up by Hertz and a few others).

Hertz has the DCC thing, or they used to anyway, written into the contract they print out for you to sign. You have to be adamant about not allowing it and things can get messy. I've been threatened with a non-rental late at night at Heathrow but managed to have them see my way about it...was not easy.

Myer

Eventually I'll ask the hotel why they put the transaction thru in US dollars. It appears they innocently thought it's a service and the exchange rate favorable to their customers.

We'll see if I actually get credited 150% of the difference. Or anything.

xyz123

Do a search here and on google about dynamic currency conversion and the lies merchants are taught to tell customers to make them fall for this scam although I agree with Flanneruk; sometimes clerks are poorly trained and not told the client has the option of optins out and that if the client screams, summon a manager.

kerouac

It is excellent that the hotel did the right thing -- but what is wrong is that you apparently signed a debit slip marked in USD. You must never do that when USD is not the currency of the country.

A Ramada hotel tried to do that to me in London (well, EUR instead of USD) and I refused when I saw the slip. So they did it properly.

Christina

At least they did the right thing, but doing it in the first place without your permission was bogus and I'm sure they knew what they were doing (that they were getting some cut for doing that, or else why would they?)

Myer

kerouac,

It was my fault for not checking closely. I was distracted.

We were out all day, wanted to pack for an early morning departure and then go out to dinner.

I was concentrating on the fact I wanted to pay part of the bill with remaining Euros and the remainder with the credit card. The clerk was having trouble even doing that. One clerk at the desk of a relatively small hotel.

The receipt showed the amount in Euros above and the dollar amount below. It actually did say beside the dollar amount "Transaction Currency".

But the clerk didn't tell me verbally or point out in some way what she was doing.

In the end, while they shouldn't have done it this way, it's my responsibility to check it over. I knew the number of Euros it should be and I stopped there.

My intention with this post isn't to pass on blame or accept it for myself. All I want to do is alert others.

Myer

Just reporting back.

I was told I would be refunded 150% of the overcharge and it would be done within 72 hours.

I see the refund in my credit card account this morning.

Next time I'll be more careful checking my hotel charges while I'm checking out.

xyz123

Thank you for your alert.....but, no offense or anything like that meant, you're a bit late to the game. The scam of dynamic currency conversion has been written and spoken about here for years. The thing is it is spreading like a cancer metastasizing throughout much of the travelling world. Every hotel I stayed at during my recently concluded trip to Europe did ask me whether I wished to pay in local currency or in US dollars' at least they asked which they are required to do. I did not have any hassles on this although I was wort of prepared.

Again, just to summarize for everybody. Before signing any credit card charge, please check to see the only amount listed is in local currency. Should there be two currency amounts listed, one in the local currency and one in the currency of the credit card, then politely inform the clerk to void (not credit, this could be important) the transaction and do it properly in local cuyrrency. The clerk might or might give you some lies such as it can't be done, it's done automatically by the terminal (the terminal according to visa/mc rules must ask the clerk whether the customer wishes to pay in local currency or their currency, some terminals first spit out a slip with the information), the rate being used is a good rate or the infamous no speak English. Ifr they refuse to do so, ask to see the manager. If the manager still refuses to do so, do not pay cash. Rather circle the amount in local currency, cross out the amount in your currency and write local currency not offered and sign the slip. Tell the merchant you will be disputing the charge.

If that doesn't do the trick, so be it. When you get home, dispute the charge (although because of currency fluctuations in the interim, you may win or you may lose you have to check that)...your bank hopefully will charge the charge back to the merchant causing him a penalty for violating mc/visa rules or at the very least will refund you the difference.

One other point which you might care to use. Amex does not allow the scam although in general, they have a foreign transaction fee of 2.7% which is 2.7% higher than it should be. Also be aware if you use one of the large American credit card banks which impose foreign transaction fees, if you fall for the dynamic currency conversion scam, you'll be nicked for the fee anyway (it's a transaction fee not a conversion fee).

So I'm glad you got it resolvcd and hope your experience will alert others to this spreading scam.

Myer

xyz123,

Just to clarify your comment about two different currencies appearing on a charge slip.

Some vendors still have their slip print out what used to be the equivalent in French Francs so that the locals could understand the "new fangled" Euro currency. Maybe they should update their software.

What xyx123 meant is a charge that shows Euros and then US dollars. Don't allow the US dollar amount to go unchallenged.

xyz123

Myer...I understand that and have seen such slips in France but I did say look out for a transaction in local currency and your currency; do bear in mind that the scam is not just pulled on Americans....Many Brits, for example, visiting Euroland have the scam perpetrated on them and as a matter of fact, many American merchants are beginning to pull the scam on visitors to the USA!

annhig

Many Brits, for example, visiting Euroland have the scam perpetrated on them >>

we had this scam pulled on us once in Paris in March - again the transaction had gone through before I noticed they had entered £ not €, and it was not drawn to my attention before they handed me the machine.

i could have argued about it, but decided that for a total of €70 or so, it wasn't worth it.

it did make me a lot more vigilant for the rest of the trip.

my rule of thumb is this: if they were doing this for OUR benefit, they would tell us about it before they did it. the fact that almost invariably it's done before we spot it leads me to believe that they know very well it's a scam.

DebitNM

Can you simply say, BEFORE they run the card, "Please be sure to run the charge through in Euros,"?? Would this then remove the potential for having to void the transaction and re-doing it? I am always leery of having someone void a transaction, they seem to end up just doing a "credit" and that would involve a secondary translation, n'est-ce pas?

xyz123

I will try to explain the difference and you're right..it does lead to a secondary translation and......if your bank is one that charges a foreign transaction fee. the fee is added to the purchase but subtracted from the credit...make sure it is a void and not a credit. (although you should not be using any credit card that charges a foreign transaction fee anyway but that's another story.

DebitNM

You should realize by not, xyz, that I have my no fee Cap One CC along with my no fee Cap One ATM card, and my Andrews FCU chip card

xyz123

....in that case, in the interim between a charge and a credit, with a no foreign transaction fee card, you might make a little bit of money if the exchange rate changes in a positive way or lose . They are two sepaarate transactions as noted....in the case of using a credit card with a foreign transaction fee, and I don't understand why anybody ever would, if you credit a transaction, you lose 6% (the 3% fee added to the charge and the 3% fee subtracted from the credit). All the more reason to use a no foreign transaction credit card. <g>

annhig

Can you simply say, BEFORE they run the card, "Please be sure to run the charge through in Euros,"?? Would this then remove the potential for having to void the transaction and re-doing it?>>

yes of course, but that's a bit of a bore, isn't it? and what if they appear not to understand you and do it anyway?

a case of the customer being always wrong, i fear.