They Just Don't Read or Listen about DCC Scam
Dec 21st, 2014, 10:16 AM
#82
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@Dukey1, sorry for not answering correctly, I was calling the bank behind my ATM Card on thursday and I got affirmation for what I beleived to be true since 20 years: their fee would ve been about 3,5 € for that amount (could be 5 € likewise, I would accept) - in comparison to that stay a 40 € straight deducted by the (pretty stable) rate of the KB Bank in Prague.
Thats more than 10 %
Thats more than 10 %
Dec 21st, 2014, 12:58 PM
#83
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There is a lot of confusion between Charges and DCC. My Irish banks charge either 3% or 2%charge + 3%DCC My UK bank charges £1.50 / transaction + 2.75%
Visitors are not charged for taking money from an Irish ATM by the machine although Irish bank account holders pay for every card transaction. Visitors ARE charged by their own banks at home which is why I always recommend finding what your own bank charges for using an Irish machine.
Visitors are not charged for taking money from an Irish ATM by the machine although Irish bank account holders pay for every card transaction. Visitors ARE charged by their own banks at home which is why I always recommend finding what your own bank charges for using an Irish machine.
Dec 22nd, 2014, 11:31 AM
#84
1. The ATM you are using may charge a fee for using it.
2. Your bank may charge a fee for using a "foreign" ATM, I.e. not one of theirs, even for a balance query.
3. Your bank may charge a foreign conversion fee for converting the cost of your euro/rubles/yuan etc. to your own currency.
4. The ATM may offer to charge your transaction in your own currency instead of the local currency.
Charge 4 Is the DCC scam. I avoid charges 1-3 by carrying a card for foreign travel that doesn't charge 2 and 3 and refunds 1. I avoid charge 4 by paying attention to what is on the ATM screen (every ATM I used in Portugal on my last trip tried the DCC scam).
Note that the DCC scam is not limited to ATMs, it is becoming more prevalent with credit cards.
2. Your bank may charge a fee for using a "foreign" ATM, I.e. not one of theirs, even for a balance query.
3. Your bank may charge a foreign conversion fee for converting the cost of your euro/rubles/yuan etc. to your own currency.
4. The ATM may offer to charge your transaction in your own currency instead of the local currency.
Charge 4 Is the DCC scam. I avoid charges 1-3 by carrying a card for foreign travel that doesn't charge 2 and 3 and refunds 1. I avoid charge 4 by paying attention to what is on the ATM screen (every ATM I used in Portugal on my last trip tried the DCC scam).
Note that the DCC scam is not limited to ATMs, it is becoming more prevalent with credit cards.
Dec 23rd, 2014, 05:34 AM
#87
Perhaps I should elaborate.
3. Your bank may charge a foreign conversion fee.
<i>You will get the interbank rate.</i> You will usually pay between 1% (Credit Union) and 3% (big bank) on top of the interbank rate. (Or zero percent if you are like me and have an account that doesn't charge the fee.
4. The ATM may offer to charge you in your local currency.
<i>You will NOT get the interbank rate.</i> The bank will charge whatever it feels like. I have heard of rates running 4-7% over the interbank rate, although I have no personal experience.
<i>Your bank will charge the foreign conversion fee as well, even though you were charged in your local currency, because the transaction is with a foreign company.</i> (Citibank once charged me the FCC when I paid the New York office of Turkish Airlines in USD.)
So, a naive and careless person, with a big bank card, who falls for the DCC scam, could pay 10% for a transaction that costs me nothing.
It is a scam because the foreign bank is attempting to get money by confusing the customer into thinking they are getting something of value when they are not.
3. Your bank may charge a foreign conversion fee.
<i>You will get the interbank rate.</i> You will usually pay between 1% (Credit Union) and 3% (big bank) on top of the interbank rate. (Or zero percent if you are like me and have an account that doesn't charge the fee.
4. The ATM may offer to charge you in your local currency.
<i>You will NOT get the interbank rate.</i> The bank will charge whatever it feels like. I have heard of rates running 4-7% over the interbank rate, although I have no personal experience.
<i>Your bank will charge the foreign conversion fee as well, even though you were charged in your local currency, because the transaction is with a foreign company.</i> (Citibank once charged me the FCC when I paid the New York office of Turkish Airlines in USD.)
So, a naive and careless person, with a big bank card, who falls for the DCC scam, could pay 10% for a transaction that costs me nothing.
It is a scam because the foreign bank is attempting to get money by confusing the customer into thinking they are getting something of value when they are not.
Dec 23rd, 2014, 06:32 AM
#88
Join Date: Jan 2003
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<I>Citibank once charged me the FCC when I paid the New York office of Turkish Airlines in USD.</I>
Sometimes, even if you pay in USD, your transaction is processed by the credit card facilities located abroad, often at the HQ of the foreign airline, and foreign transaction charge (not necessarily foreign currency charge) is levied.
Sometimes, even if you pay in USD, your transaction is processed by the credit card facilities located abroad, often at the HQ of the foreign airline, and foreign transaction charge (not necessarily foreign currency charge) is levied.
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