Originally Posted by
ajnaro
Yes. I can see how you handled the matter. In cases like this, I have instead asked the merchant to reverse the charge with dcc and make a new charge in the local currency. After all, it is the bank, not the merchant, who operates dcc. According to the information I have been given, the merchant's credit is in local currency, not the converted currency, and the merchant does not profit at all from the dcc. But I suppose that could be a matter of negotiation.
As
JEFFJAGUAR said
here your suggestion will likely lead to a loss as well, albeit a small one. In this case the merchant seemed happy to make good my entire loss which I think was the best possible outcome for me. The merchant (part of the UK government) will now be out of pocket but I think they have learned something as well.