Refusing dynamic currency conversion
Jan 24th, 2006, 03:26 AM
#61
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how much money you lose when you allow yourself to be scammed by dcc depends on your credit card's policy regarding foreign currency fees.
Most dcc scams use 5% above the interbank rate as their rate...almost all American credit cards charge 3% above interbank (1% by visa/mc and 2% in their greedy profit motive)..there are credit cards that only pass along the 1% visa/mc charge and one credit card, Capital One, actually uses the interbank rate and eats the 1% mc/visa rate. So if you use a capital one credit card and allow them to pull the dcc garbage, you're out 5%...so a hotel stay which costs you $300 after conversion using capital one credit cards, costs you $315 when the merchant uses dcc on you.
Most dcc scams use 5% above the interbank rate as their rate...almost all American credit cards charge 3% above interbank (1% by visa/mc and 2% in their greedy profit motive)..there are credit cards that only pass along the 1% visa/mc charge and one credit card, Capital One, actually uses the interbank rate and eats the 1% mc/visa rate. So if you use a capital one credit card and allow them to pull the dcc garbage, you're out 5%...so a hotel stay which costs you $300 after conversion using capital one credit cards, costs you $315 when the merchant uses dcc on you.
Jan 24th, 2006, 03:58 AM
#62
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"Most dcc scams use 5% above the interbank rate as their rate..."
I had no idea there was such "regularity" to these so-called "scams." Did all the scammers have a meeting and decide that 5% would be the right amount?????
I had no idea there was such "regularity" to these so-called "scams." Did all the scammers have a meeting and decide that 5% would be the right amount?????
Jan 24th, 2006, 04:06 AM
#63
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You should inform the scammers that you will report them to Visa (or Mastercard etc.)who will consider refusing to deal with them.
Committing fraud and claiming that Visa
are forcing you to do it will not go down well.
Doesn't Visa find it strange that certain establishments are doing DDC for almost all transactions with foreigners?
If they cant control this daft scheme it should be scrapped.
Committing fraud and claiming that Visa
are forcing you to do it will not go down well.
Doesn't Visa find it strange that certain establishments are doing DDC for almost all transactions with foreigners?
If they cant control this daft scheme it should be scrapped.
Jan 24th, 2006, 04:10 AM
#64
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I'm just using the figure I seemed to be charged in Ireland last April when on several occasions they had to credit the original charge and on my statement I saw both amounts.
You are right, there is no general rule but remember the purpose of dcc is to make money (surprise, surprise) for both the credit card processor and the merchant so that all has to become part of the price.
You are right, there is no general rule but remember the purpose of dcc is to make money (surprise, surprise) for both the credit card processor and the merchant so that all has to become part of the price.
Jan 24th, 2006, 04:11 AM
#65
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I find it interesting to note how vendors sell the Dynamic Currency Conversion to the merchant. If you were to Google "Dynamic Currency Conversion," you will see many, many websites with phrases such as "Offer your customer the convenience of...".
Regards,
Charles
Regards,
Charles
Jan 24th, 2006, 04:27 AM
#66
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"Debit cards that carry the Visa brand (and I suspect other credit card brands) carry very similar buyer protections to traditional credit cards."
Your protection is up to your local bank. My VISA dept card was charged fraudulently for $1,100.
It took nearly 6 weeks and repeated phone calls and trips to the bank to get the money deposited back in my account.
Keith
Your protection is up to your local bank. My VISA dept card was charged fraudulently for $1,100.
It took nearly 6 weeks and repeated phone calls and trips to the bank to get the money deposited back in my account.
Keith
Jan 24th, 2006, 04:30 AM
#67
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Interesting Charles! I followed your tip and found this on PlanetPayment's web site (Note: this is from a press release, so it's NOT violating copyright):
By Philip Beck, CEO,
Long Beach, New York, January 9, 2006 -- Welcome to Planet Payment®! As one of the world’s leading providers of multi-currency processing services, Planet Payment is committed to addressing the key issues and opportunities facing our industry today.
In that spirit, I’d like to take this opportunity to briefly address the issue of cardholder choice as a component of the DCC experience. As Planet Payment sees it, giving the international customer the choice of whether to pay in his home currency or in the merchant’s currency is absolutely critical if DCC is to attain the full measure of acceptance and enjoyment that it should. Allow me to elaborate:
First, when customers are offered DCC as a real choice by an educated merchant, they quickly see its key benefits, namely the certainty and convenience of paying in the currency they truly understand – their own – and may opt in. Conversely, forcing a customer to accept DCC creates the impression that DCC is something less than the valuable service it is. That’s a great disservice, considering the benefits of DCC easily stand on their own merits.
Second, merchants benefit from the customer service “wow” that comes from offering choice. International customers feel more welcome at merchants who let them know their currency is accepted, and they shop at those merchants – even the customers who don’t choose DCC!
Finally, cardholder agreement to DCC is a requirement of both Visa and MasterCard, and it’s non-negotiable that all DCC transactions must be compliant.
Planet Payment offers its DCC to merchants who are committed to offering their international customers real choice, and we encourage everyone associated with the industry to follow the same rigorous standards. Finally, I invite everyone who has tried DCC to share their experiences with me so we at Planet Payment can make our service as valuable to international travelers as possible.
(On that note: perhaps everyone who'se experience the "joy" of DCC can write the company...contact info is on their web site www.planetpayment.com.)
Interesting that while in the PR section, PP touts the customer benefits of DCC, on its merchant services section it clearly notes that DCC allows merchants to "earn additional revenue on existing transaction..." and calls DCC a "a powerful tool that will dramatically impact the bottom line – both by closing more international sales and earning a commission on each DCC transaction."
Anyway, that's a DCC vendor's view...doesn't quite jibe with the Fodorite view, does it?
By Philip Beck, CEO,
Long Beach, New York, January 9, 2006 -- Welcome to Planet Payment®! As one of the world’s leading providers of multi-currency processing services, Planet Payment is committed to addressing the key issues and opportunities facing our industry today.
In that spirit, I’d like to take this opportunity to briefly address the issue of cardholder choice as a component of the DCC experience. As Planet Payment sees it, giving the international customer the choice of whether to pay in his home currency or in the merchant’s currency is absolutely critical if DCC is to attain the full measure of acceptance and enjoyment that it should. Allow me to elaborate:
First, when customers are offered DCC as a real choice by an educated merchant, they quickly see its key benefits, namely the certainty and convenience of paying in the currency they truly understand – their own – and may opt in. Conversely, forcing a customer to accept DCC creates the impression that DCC is something less than the valuable service it is. That’s a great disservice, considering the benefits of DCC easily stand on their own merits.
Second, merchants benefit from the customer service “wow” that comes from offering choice. International customers feel more welcome at merchants who let them know their currency is accepted, and they shop at those merchants – even the customers who don’t choose DCC!
Finally, cardholder agreement to DCC is a requirement of both Visa and MasterCard, and it’s non-negotiable that all DCC transactions must be compliant.
Planet Payment offers its DCC to merchants who are committed to offering their international customers real choice, and we encourage everyone associated with the industry to follow the same rigorous standards. Finally, I invite everyone who has tried DCC to share their experiences with me so we at Planet Payment can make our service as valuable to international travelers as possible.
(On that note: perhaps everyone who'se experience the "joy" of DCC can write the company...contact info is on their web site www.planetpayment.com.)
Interesting that while in the PR section, PP touts the customer benefits of DCC, on its merchant services section it clearly notes that DCC allows merchants to "earn additional revenue on existing transaction..." and calls DCC a "a powerful tool that will dramatically impact the bottom line – both by closing more international sales and earning a commission on each DCC transaction."
Anyway, that's a DCC vendor's view...doesn't quite jibe with the Fodorite view, does it?
Jan 24th, 2006, 07:52 AM
#68
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Wow BT. What an interesting post. Planet Payment's statement, "That’s a great disservice, considering the benefits of DCC easily stand on their own merits" is dumbfounding. Did you catch those "benefits"?
Also, xyz123: Thanks for helping to understand the actual $$ amount. To be sure I understand - If, after conversion, I have a $300. hotel bill ( which would include the 3% conversion charge ), I would be looking at probably an additional 5% on top of that, that representing the dcc?
Also, xyz123: Thanks for helping to understand the actual $$ amount. To be sure I understand - If, after conversion, I have a $300. hotel bill ( which would include the 3% conversion charge ), I would be looking at probably an additional 5% on top of that, that representing the dcc?
