Do you know if it is true that some credit card machines can charge only in dollars if they recognize that the card-issuing bank is American? Or is this a bluff on the part of the business where you are charging? I am thinking of refusing to sign a slip in dollars and refusing to pay cash and telling the business to call the police if they don't like it. Am I nuts? I just can't stand being taken advantage of.

Personally I would refuse to sign and furthermore I would refuse to buy anything from that merchant. (Well, unless I'm paying for dinner--it might be tough to return the food. In that case I would pay cash.) But I would NOT call the police. Dynamic Currency Conversion is unethical and probably a violation of Visa's rules, but I doubt it's a criminal offense.

To be in compliance with visa (and probably mastercard) regulations, you must be given the choice to pay in local currency and as a matter of fact the sales slip you are asked to sign says something to the effect that you were offered the chance to pay in local currency and you choose to pay in your currency (we'll say USD but it could be AUD or CAD or in Ireland GBP) and your choice of currency is final.

From what I have read on the web sites of the credit card processors pushing this scam, the terminal asks before completing the transaction if the customer wishes to pay in USD (if that's the currency of the card) and clerks apparently have been instructed without asking to press yes and to hope the customer doesn't read the slip and if the customer is wise to this scam to use such phrases, as we have seen, that the USD amount shown is just an approximation, that the rate is an excellent rate, that the terminal will not process the transaction in local currency, that it is too late and the transaction ha been completed and cannot be voided.

Now the queston is whether the clerk believes or is simply passing along what he or she has been told to say.

I ran into this 4 times during a recent trip to Scotland. In the first case, the clerk admitted she had been told not to ask but simply to press yes. The chief cashier came over and gave me the lies indicated above. Finally the manager came over, grudgingly admitted I was right, credited (not voided) the original transaction and ran it in sterling making a comment such as, "Oh these Americans."

The second time it happened, I asked the clerk before the transaction not to pull this scam. She claimed she had no control over it but I told her to press no when the question came up and lo and behold, the slip was printed in sterling. She said she never knew this was an option.

Occasion number 3, once again, I asked the transaction be written up in sterling. Again I got the answer it was done automatically and she had no control over it and the transaction came up with the dynamic currency conversion scam applied. I said she should void the transaction and re-do it properly. She said she couldn't do it. I asked for the manager who came over and immediately said no problem, credited the fraudulent transaction and ran the transaction in sterling. The clerk asked him how he had done this and he said to her, "Just say no when it asks if the customer desires to be charged in his currency." The next customer on line did the same thing and he started to make a face.

At the fourth location, I forgot to say run the transaction and of course it came out in USD. I said no, I don't choose to pay in USD and again it was the same set of lies. The manager came over and I said why are you pulling this crap. You know you are required to give the customer the choice and are committing fraud when you press the yes button. She said every customer wants to save money and besides it would be more expensive for me (Ha ha) to pay in sterling as my credit card company would apply fees to the conversion. Whether she believed that or had been told to say that by the credit card processors I don't know but she again credited the original transaction and then properly ran it in sterling.

Now the story here is that all this took place in Scotland and at least there was no language problem. I wonder what would have happened if this garbage were being pulled in Italy, where it is becoming a large problem or in Spain where there would have been a language problem.

But the bottom line is:

1. You must be given your choice as to whether you wish to be ripped off by the dcc scam.

2. The terminal does ask the clerk if the customer wishes to be ripped off by dcc before the transaction is completed.

3. Every transaction if not able to be voided can be credited back and written up properly.

I have written to British consumer affairs regarding this scam and indicated it is their responsibility to either have the clerk ask the customer whether he or she wishes to have dcc applied to the transaction or put up a sign indicating the transaction will be written up in the cardholder's currency at the following rates and listing the rates unless the customer requests otherwise.

I have yet to get an answer back from them regarding this.

But isn't answering the question on the terminal that the customer wishes to be charged in USD without asking kind of fraud which is criminal behaviour?

"(Well, unless I'm paying for dinner--it might be tough to return the food. . ."

Ah hah! I think P_M has at last thought of a way to really get their attention! Might make them think twice before pulling that scam again!

And xyz, I like your style:
"2. The terminal does ask the clerk if the customer wishes to be ripped off by dcc before the transaction is completed."

I can see it now right on the terminal.
"Does the customer wish to be ripped off? Press 1 for yes, press 2 for no."

P_M -- Actually, I wasn't suggesting that I would call the police on them, but rather that they could call the police on me to try to force me to sign the draft. But it sounds as if persistency and knowing how the system operates will be sufficient.

and perhaps the longer it takes to rectify, the louder one's voice becomes...

I raised this issue on these and tripadvisor forums in July '04: I refused to pay in USDs and told them to call the police as I was more than happy to pay in GPBs and tip reasonably well - they very humbly brought me the CC "voucher" in GBPs without an argument.
M

Someone that pulled this scam would get no tip at all from me.

Keith

We leave for France in a few weeks and I found this info extremely valuable. I went to Visa's web site
(http://www.corporate.visa.com/pd/con..._faq.jsp)where they say, "Visa requires that you are provided a meaningful choice at the point of sale and you have the right to buy your purchase in the local currency." I'm taking a copy of this with me and thanks. Jerry

The good news for you is that the dcc scam for the most part is not taking place in France; at least I have yet to encounter it in France.

Biggest places it is taking place are Ireland and Italy.

Growing problem in Scotland and other parts of the UK as well as Spain.

As I've posted elsewhere, I called Bank of America before I left to ask how they wanted me to deal with this. The service rep was outraged at the audacity of a foreign proprieter to pull this, and he did indeed suggest I call the police. However, he wanted me to talk to the fraud department for more specifics, and that fraud rep was a total waste of my time.

I sent a detailed email to the card company today of the two establishments I knew that tried that on us in Ireland. I'm sure I could have reported 20 more--we just didn't want to get in a fight and we paid in cash throughout the rest of the country.

I may not have wanted to do the "fistfight" on vacation; I am very willing to follow through at home right now. I think that all American BankCards need to be agressive and send out a fraud alert with steps each citizen should follow.

If you can get an email address for any restaurant or business that tries this on you, I'd also suggest you come back here and make a post telling everyone to avoid this place as they tried to cheat you. Then email that thread to them. The sooner these places find out they can get in trouble for doing what they're doing and it might even hurt business, the sooner they'll quit it.

First, ask to have the charge re-done in local. If the merchant refuses, write this on the charge slip <i>where it can't be torn off</i>:

<b>LOCAL CURRENCY NOT OFFERED</b>

Then sign the charge and dispute it when your bill comes. The merchant will have to produce the signature document with your note on it, the credit card company will debit the merchant for the difference and credit it to your account.

The whole thing will be such a hassle for the merchant that he might change to local just to avoid it.

DO NOT settle in cash - this is playing into the merchant's hands, because he will avoid the credit card discount points.

I think Robespierre has hit the nail on the head with that last statement of his.

It's always been a sort of thorn in the side of businesses to have to pay a couple percent from each sale for accepting a credit card. This Dynamic Currency scam is a good way for them to reverse that expense. And if it makes the unwary person pay in cash, so much the better. They still save that couple of percent if they had taken a credit card.

Don't play into their hands.

I was in UK and Scotland this summer for 23 days. I saw this happen to a customer in front of me, and decided to pay my bill in cash. I have basically quit using cc in europe. I take a debit card, and have used it in UK, Scotland, Wales, Italy, Belgium and Spain with no problem. The only cc charges that I made were to hotels which did not try the scam. My debit card charges me 2.00 per transaction to get money, which I think is fair. I take 400 to 600 dollars out at a time and when I run low, do it again. That way, if I am pickpocketed, I do not loose my whole roll. Plus,with small purchases, cash can get you a discount if you are willing to barter in some countries.

Heading to England for 2 weeks in just a few days and putting on my battle gear in preparation for this. I'll report back in October.

If anyone checks back in on this subject - I'm curious if, prior to being presented with the bill by a certain proprietor, would it make sense to ask/direct that the bill be calculated in the local currency? I realize that some may still try to hand you their pack of lies but possibly w/ others, they'll realize they are dealing w/ someone informed on the subject and will opt to avoid a potential argument.We will be traveling to Italy in June and I'm even thinking of emailing the hotels that I have reserved, including Hotel Duomo in Orvieto, and asking the question if they practice &quot;dynamic currency conversion&quot;. I like the idea of being able to use my credit card as that is a way, and lately the main vehicle, I have of accruing airline miles. Appreciate any additional comments.

You hit on the problem; these usually are low level clers and they do what they are told. In many cases, they claim they have no control over the terminal and of course in Italy there would be a language problem.

Checking into a high end hotel in Dublin couple of days ago I was asked if I would like to settle my final bill in US$ or Euro$? I told the clerk that Euro$ was the ONLY option I will agree with. So far so good, but it's not over till that little slip gets printed. The &quot;information bill&quot; slipped under the door this morning is in Euro$.

I always watch the CC slip during the final check out as I did have an instance, and it was here in Dublin couple of months ago, where the CC slip was printed in US$. The clerk either played it good or he really didn't know what I was talking about when I refused to sign it. Only after a brief and friendly conversation with the front desk manager was I presented with the CC slip in Euro$.

So maybe they are getting the message. Hopefully I will be presented with a Euro$ CC slip in couple of hours and there won't be any need to &quot;have a talk&quot;

Heading home today