I started to put this in the Courtyard Munich thread, but since it could be happening elsewhere I decided to start a new thread.

The last time I stayed at the Munich Courtyard, when I went to check out I noticed a sign near the cashier announcing that “direct currency conversion” (or some similar name) was being offered/used, under which the Euro amount of the invoice would be converted to dollars at their rate and, along with a conversion fee, charged to my credit card. This appears to be nothing more than the “Dynamic Currency Conversion” which has been mentioned in numerous threads here on FlyerTalk and is criticized by some consumer protection financial advisors (e.g., here) and discussions on other travel boards.

I told the desk I did not want to participate in this "offer" and that I wanted the actual Euro charge, no fees or conversion rates added, to be charged, in Euros, to my card. She said she understood and that I would be charged in Euros.

Nonetheless, when my bill was presented for signature, it did contain the conversion into dollars. I crossed that out and again told the front desk person that I wanted the charge in Euros. She agreed that it would be processed in Euros instead of the inflated dollar amount.

When I checked my credit card account on-line some days later, I noticed that I had been charged the inflated dollar amount rather than the Euro amount. I contacted the Courtyard, and at first they agreed that it should have been in Euros and said they would correct it. When no correction appeared after about a week, I again contacted Courtyard and this time they wanted me to write to the company (in Ireland, as I recall) that processed their currency conversion for them and submit all sorts of documents.

For the first time, they informed me of the details of their currency conversion "feature" -- they applied a currency exchange rate (did not specify where it came from), added 3%, and charged that against my card. They didn't care whether my card also charged 3% for foreign transactions or not -- indeed, they explicitly said that they didn't care and wouldn't refund that money. The only thing they would do is to refund any excess on the currency conversion (but not the 3% conversion fee), but only if I sent them all sorts of documentation including a charge on the same card on the same day that didn't go through them, and even then they would only refund the excess they had charged over the conversion rate charged in the other transaction (so maybe 1% of the charge).

I declined to go through that process, as I had never agreed to it, and after some further exchanges with the hotel (in one of which I had to point out that I suspected German law considered the Euro to be legal tender unless otherwise agreed between the parties to the transaction, and I had never agreed to pay anything other than Euros), the Courtyard agreed that participation in their conversion program was voluntary and posted a refund to my credit card account. So ultimately I was satisfied with the result.

But -- two things going forward:

1. At the time I checked out, I was not specifically informed that the program was "voluntary" nor was I asked to "opt-in" or agree to use their conversion rather than pay in Euros. I had to take the initiative to object, and even that didn't work at first, as the above summary shows. I would suggest that anyone staying there be alert when checking out and if you don't want to avail yourself of this "offer" you make it plain and at least cross out the converted amount when you sign.

2. I am extremely surprised that Marriott would permit such a thing. To my mind, this is an infringement on the customer, particularly one, like me, who uses the Marriott Rewards VISA credit card, which -- as we know, and as the Courtyard management should know -- has no fee for currency conversion or for foreign transactions. At best, therefore, this is simply an extra 3% charge for which the customer receives nothing (at least nothing I can see). As I say, I'm surprised Marriott allows such a thing.