New way stores are hitting you with conversion surcharge
 

I have seen all the previous posts on conversion fees added on by banks but here is a new one to me added on by stores. <BR> <BR>Some businesses (Blarney Woolin Mills, Trinity Crafts and Conrad Hilton Hotel) show the charge in Irish punts but have a line underneath that lists the amount in US dollars at their higher exchange rate about 6% more then other sales I made that day that just charge the price in punts and let VISA do the exchange later. <BR> <BR>Anybody else see this anywhere else but in Dublin?

no, but I'm not clear on what you're saying. Lots of places will give you an idea of prices in USD and it's not always exact due to currency fluctuations. However, I have never seen or heard of a foreign business charging your card in USD. Did you agree to this? If so, why? Actually, I am surprised as I wouldn't think any business would be allowed to charge in a currency other than the one where they are located, sounds illegal somehow to me. I mean, do you think the Hilton in NY could charge someone's credit card in lira? I wouldn't think so, but there are strange things I learn every day and Ireland has some funny laws it seems to me regarding money.

Yes they do charge in US dollars. Why did I do it -- I just checked the credit receipt and saw the large number in punts that was what I was expecting but did not notice the area where it had the US dollar amount until I was comparing receipt to credit card bill and wondered why it did not show the coversion. Obviously I should have noticed at the store but as you said I never realized they could do this. Now I do!

Mickey, where are you going with this?Do you have any advice for me? What should I do, not use my credit card?Are you saying that the business is converting the amount on its own to make more money, and then it gets converted again later like its supposed to?So you are then paying double the exchange rate?Let me know if I got this right because im going in 2 weeks.

All I'm saying is that they might do this so forewarned is.... Next time I'll check to see if they are and if they do, I might not pay this way. I might use cash or ask to see if they will charge in local currency. I don't know if it is the business or the company that owns the credit card machine is the one profiting on this.

Amy; <BR>It sounds like the store is going to do the exchange for you and charge you their exorbitant exchange rate in stead of your banks rate. I sure this is "for you convenience." Sounds like a good scam. <BR>mikey: <BR>How would you know in advance? Who would you ask? I'm sure the store clerks would be clueless about this.

Mikey <BR> <BR>Get in touch with the Irish Director of Consumer Affairs asap as she is running a campaign on overcharging when exchanging money - it is really concerned with the Euro but she might take notice of the scam you just mentioned. Her email address is [email protected] and you should also copy it to the European Consumer Centre in Dublin at [email protected] <BR> <BR> <BR>Finally you should also lodge a complaint with the Tourist Board as this is unfair sharp practice, <BR> <BR>Cathy

mikey, Thanks for the warning. <BR> <BR>linda

I noticed the same practice at a few places in the West of Ireland last year, but I figure I came out about even because when they made the charge in US dollars they also deducted the VAT on the spot. That saved me both the trouble of making the VAT refund application and the commission the VAT refund service would have collected. If the conversion rate the Irish merchants used was only 1-2% higher than the banks' rate, I'm happy to deprive the avaricious US banks of their undeserved 3% add-on. A 6% difference is pretty hefty, though. Because I don't buy much stuff on my travels it all amounts to just a few dollars for the entire trip and that's not enough to worry about.

I think that everyone should read Pats advice about VAT refunds and the other kind of refund.All of this still sounds suspicious to me.Im sure that you could get a VAT refund without being charged in USD.I will check it and let you know.

Kathie, Its hard to figure out whats going on becuase the kind of deal you got was like Duti-free.In Pat Prestons Guide it says you must pay by charge card.Stores take off the VAT at the time of purchase(less a 2-3% service fee)and give you a form. However you must remember to hand in your forms at departure from Ireland.If you dont hand in your forms, then your credit card will be charged the VAT plus a fee of 2.50 punts.This is a new system and so far only a few stores participate.If you dont have a credit card and still wish to purchase, you pay the full price including VAT and the company sends you a check within six weeks(less 2-3% service charge)Nowhere in this does pat mention anything about stores charging in dollars, and she is supposed to be the expert.If the exchange rate is in thier favor, it seems to me like you probably lost out. <BR>The store you dealt with must have its own thing going on.

Also, there is the Global Refund for VAT and the Tax Back VAT refund.ALL of these require forms to be filled out.I cant wait till I get there and find out what happens.Lets say your buying an umbrella for 5 punts.When the credit card converts that to dollars it will be about$5.75 at the current exchange rate plus conversion fees.If they charge you in dollars $5.75 would that be converted back to them at 6.65 in punts?Why would an Irish business charge in dollares?Dont they need Irish money?It doesnt make any sense are they saving the credit card from converting the money and therefore saving you fees?Sorry it sounds wierd to me.

I have contacted Blarney Woolin Mills to ask them about this (since I spent several hundred dollars there and this practice cost me the most there. They said they are sending me a letter with their response (don't know why they just didn't send by e-mail like all their other fast responses). <BR> <BR>Cathy -- I'll do those things!

A couple of years ago when checking out of our hotel in Cork, I noticed that they had prepared the bill in US dollars and were ready to run my credit card through in a dollar amount. I protested as I had already mentally done my conversion of what the amount would be in dollars compared to the quoted price in punts. Their amount was significantly higher. They kept insisting it was for my "convenience", but I refused to let them do it. I made them run the charge through in punts. I still have no idea how it would have worked with their bank deposit. Would the dollar amount they were charging me be converted to punts at their bank, then back to dollars at my bank? Anyway you look at it, I stood to lose somewhere. Ireland is the only place I have ever encountered this practice.

<BR>Back from Ireland a couple of weeks ago and found accurate conversion rates on all bills from credit cards used in stores. Same with ATM card, and no fee charged. Don't know that I would bother with traveler's cheques except for emergency back up. Some friends insisted on carrying American money to exchange and had difficulty finding banks open. <BR> <BR>Charge slips do have a price quote in Euro as well as punt, of course. But that means nothing. If you do expect a VAT refund at airport, be sure to get clerks to fill out the slip.

<BR>Back from Ireland a couple of weeks ago and found accurate conversion rates on all bills from credit cards used in stores. Same with ATM card, and no fee charged. Don't know that I would bother with traveler's cheques except for emergency back up. Some friends insisted on carrying American money to exchange and had difficulty finding banks open. <BR> <BR>Charge slips do have a price quote in Euro as well as punt, of course. But that means nothing. If you do expect a VAT refund at airport, be sure to get clerks to fill out the slip.