hetismij2

Aargh! Even Amazon is using DCC. I just ordered something from.co.uk and had to actively choose pounds over euro for the payment.

It is everywhere throughout the world, I experienced it in the UK last trip as I said.

lincasanova

One of my US cards I know is chip but signature. No pin needed.

I live in Spain so now warn them that I want euros BEFORE it comes up on screen. I have mentally remembered the $$ amount that was offered, then checked my transactions once home on my CC account.. and it is usually about 5% worse using DCC.

Geordie

I couldn't believe it when I was recently in the UK and used an Aussie $ ATM card to get cash out, it asked me if I wanted the amount converted to $US (WTF), if I said yes then I would have had 2 conversions done on the transaction plus the Aussie bank adds a 4% international transaction fee, it's a rort

dreamon

Geordie, as Aussies, we also found that bank fees cost us hundreds of dollars on a family holiday to Europe. I now have a 28degrees credit card and a Citibank Plus debit card. At the time I looked (and things may have changed), they were the best on the market in terms of international transaction fees. I recommend you change bank.

Geordie

dreamon, I'll definitely look at the other options in Australia.

I do also have access to UK & HK atm / cc cards where I don't have the same problem, unfortunately I didn't have them with me at the time

nyse

Indygirl, it's ironic isn't it that you stepped away to use the restroom and ended up being pissed off?!?

The first time I saw the choice offered was on a credit card machine in Asia and I think one of the choices was "local currency" which I interpreted as being Asian currency. I pressed the button before I realized I was actually selecting my own, US local currency.

Cindywho

Can someone explain what DCC is? I thinkI understand, but want to be sure. It's where the merchant coverts your purchase amount to your home currency rather than the credit card company, and it's likely a less advantageous exchange rate than your credit card rate would be?

xyz123

You have it correct Cindywho. Merchants are supposed to ask you if you wish to be scammed with this but some don't and then claim they have no control over it. The terminal clearly asks the merchant if the client wishes to be scammed and some just press the yes button and then claim either the amount listed as your currency is just there to assist you in determining what you are spending as a courtesy and many fall for this or they say you lock in the rate if your currency is dropping or they say once it's done, it's done or even the good old no speak English. Don't take no for an answer but if they insist, under no circumstances pay cash. Rather circle the amount in local currency, write on the charge slip local currency not offered and when you get home dispute the charge. Contrary to what somebody said above, you have a right to formally the conversion is prohibited by mc/visa rules unless the customer consents (btw Amex doesn't permit dcc)to be scammed. Some banks, like JP Morgan Chase if the amount is small, simply credit the difference rather than going through with a chargeback to the merchant.

MmePerdu

If I recall correctly, to add to the insult, if one chooses the DCC figure offered by the merchant, since a foreign bank (the merchant's bank) cannot make the charge in any but the currency of that country, our credit card bank still receives the charge in that currency and if they have a foreign currency conversion charge, still charges that along with the additional amount the merchant has charged us for the illusion of using our home currency, which is in fact just an amount equal to the original charge but using a less favorable exchange rate.

djkbooks

<<DCC is not a scam when there is full disclosure.>>

It's true that many merchants misrepresent the details, such as telling you they can only process it that way,that you receive a better exchaange rate, etc.

The best defense is to refuse to sign the slip which gives you better leverage for a dipute. You can use “Incorrect Currency or Transaction Code”, but the merchant can dispute that, whereas an unauthorized charge. Stand your ground. Get out your camera and take a photo of the slip and the clerk or server.

It's up to you to know what you're doing.

DCC was developed to assist small merchants recoup their processor's discounts and other fees, which can have a significant impact on those with high expenses, small profit margins.

Credit cards are a convenience. The processors, too, have costs of doing business and there's nothing wrong with a business wanting to maximize their profits for their services.

Does everyone really expect free services everywhere they go? Or not to share in the costs of services?

MmePerdu

"Does everyone really expect free services everywhere they go? Or not to share in the costs of services?"

The issue is one of disclosure and fairness to one's customers, not "free" which no one expects. There is no upside to DCC for the customer and it is, in that regard, a scam. If, instead of asking if we'd like the transaction shown in our own currency, they asked if we'd like to pay more for the goods and services or less, what would the answer be? Presumably a sufficient profit is already built into the price to make being in business worthwhile. If not, they should find another way to make a living that is worthwhile, rather than tricking people into paying more.