The conversions were done on the CC receipts printed out for one's signature: often in very small print at the bottom with a statement agreeing to pay in the converted USDs.
Europcar, London
Khan's of Kensington, London
Rest Xeito, Guarda, SP
A Solaina, Baiona, SP
M

mikemo, so the USD amount was on the receipt or was there an agreement that you would pay in converted dollars? If the latter, aren't you doing that when you pay your cc bill? Just trying to understand.

The amt was stated in local currency(GBP and Euro) in BOLD at the top above the sig line.
The USD amt in tiny type with the agreement below.
I wrote down the amts in USDs on my corrected charge slips: when USAA was giving me bet 1.24 and 1.25 (Euro) and just under 1.87 (GBP), the European bank conversion would have been bet 1.35 and 1.4 (Euro) 1.92 - 1.95 (GBP).
M

No question that is definitely taking a beating.

<"As for making sure that a merchant doesn't convert a sale into $$$ before charging your credit card, I've never experienced that in 30 years of travel to Europe.">

BKD, I never experienced it before myself until my recent trip to Ireland last May. I got Euros out of the ATM at the airport when I landed and when I got home, it was at the exchange rate of 1.21 -- very close to the interbank rate for that day.

The following day when at Ballybunion Golf Course, I purchased some "stuff" in the pro shop as gifts. The total came out to exactly 100 Euro. When the pro shop rang up the purchase with my Mastercard, it showed the Euro amount, and the conversion of that amount to $$$. The total in $$$ was $125 & change on the CC slip that I signed.

Knowing that the interbank rate was about 1.21, I thought nothing about the conversion they did, thinking that it was just an estimate and the final amount charged to my CC would compute to about 1.21 plus a 1% conversion fee.

Well, when I got my CC statement, I found out that I got charged an extra 3% when they did the conversion.

This didn't happen at all places, but in some of the high populated tourist areas like some of the tourist areas Woolen Merchants.

Look, I know it's only a few $$$ here and there while you're on vacation, but it adds up. Just providing a tip to other travelers to be aware of this "scam." Maybe that's too harsh a word.

Makes me very glad I am not in Europe right now.

But, I am working on a home exchange in Rome for Christmas. At least I will not be paying for accomodations.

I doubt I am going to buy any souvenirs.

GSteed gave an accurate assessment of the problem. You cannot print money to pay for the Iraqui War and have a strong dollar. The Bush Administration is going to be printing money--leading to mega inflation--because it has a philosphical bent against paying for things with taxes.

And, if the Bush Administration thinks its economic policy is somehow good for the economy, all I have seen is a bad economy.

I have read some of this stuff on dynamic currency conversion and it actually may not be as bad as once thought (not that it's great)

I do know this whole thing did start out as a scam; especially in Ireland as noted above.

However what this now seems to be is an attempt to beat the credit card companies at their own game. In effect the software is attempting to see to it that the 3% fee does not go to the bank but rather to the company making the software and to the merchant.

But I cannot find out just what sort of rate is being used. It seems it would possibly be interbank + 3% which is what you would pay with the semi-criminal banks who impose the additional 2% but of course if you're smart enough to use the banks that don't pull this garbage, you're out 2%.

However, the web sites do not indicate what exchange rate is being used.

It would seem, however, that this is going to become a much more usual thing. I went to the web site of barclaycard services. Now that is the largest visa and mc processor in the UK and they are pushing this real big.

I wonder if this is going to become the norm?

this is a bad idea and i would not accept it. if something costs 10 euro, you should be charged 10 euro, not whatever the merchant wants to charge in your own currency. You should state in certain terms that you dont' want this conversion...do you really want to have to work out whether or not you are getting a good deal every time you buy something? ...then have to argue to have it re-rung if you disagree (all with a possible language difficulty). not a good idea if you ask me.

I've never encountered this thing either in any European travels and I've been there several times in the last couple of years.

I think the tip off would be if you see USD on the charge slip you sign. I've never seen that, it's not normal, so wouldn't agree to sign any slip that had something already converted. Now I suppose if it were only two pct total or something, and it was some shop with unique merchandise I had to have, I guess I would.

I agree this is not something I would want to fool with -- trying to figure out markups over euro, as I read the paper regularly when I travel, but may not know exact daily rate.

It's the merchants' European Bank that is doing the conversion in real time as the charges are submitted when the US Bank issued CC is swiped.
Long story, but the 18 charges I put on my CC totalled $7264.(only 4 attempted the exchange) so there is potential opportunity to make some real money for the bankers (I know bond traders and currency market professionals who might kill for a reliable, "riskless" 3% revenue stream).
I predict this will become standard practice unless we all recognize what is happeneing and refuse to play the game.
BTW, since 15 June, my USAA Plat MC is rebating 1% in cash on all charges which effectively "washes" the 1% fee charged by MC. Although I am an AA mile junkie, I refuse to use my (3% fee) Citi/AA/MC overseas.
Hasta luego from SMdA!
M

I think it's part of the merchant's agreement with Visa and Mastercard that when dynamic currency conversion is available, the cardholder should be given the choice of billing currency at the point of sale (hence the line in small print on your card slip). If you aren't consulted and a slip in your billing currency is presented, you are quite within your right to refuse and ask them to void it and resubmit. If they refuse, sign under protest, cross out the small print and tell them you'll seek chargeback through your card issuer as an unauthorised transaction. My experience has been that some shop staff are unaware of DCC and show surprise at my request, while others are quite happy to bill in local currency (just a press on the right key on their terminal).

Alec, et al,
Simply refuse to sign, and demand a local currency statement!
Are you a banker?
This is a major league financial scam!!!!!
M