This is not mine, it's someone I'm assisting with a potential chargeback request.

Previously I've documented how hotels in China (Sheraton Shenzhen Futian) opt-in cardholders for DCC in express checkout (if you insist on signing a slip, the DCC will be voided and a regular RMB slip will be presented).

Today I've seen hotels take things one step further. This was an online cancellable rate booking, booking was in Euros throughout. The booking was made months ago and the hotel charged the cardholder in a card absent (card not present) transaction 2 days prior to check-in:



I didn't edit the signature out - there was no signature. The authorisation to charge was made on the online booking form, so the hotel processed the transaction like a mail/fax/phone order.

In such a situation (cancellable rate being confirmed cos it's past the cancellation window), how can the hotel possibly notify cardholder of the rate, much less agree to it? I don't have to delve into the VIOR (http://usa.visa.com/download/merchan...n.pdf#page=591) but it's patently obvious there can be no possible informed cardholder consent for a charge authorisation to be executed months after it was authorised.

I've never done a chargeback on this but being able to charge DCC on a mail/fax/phone order defeats the only valid point of DCC - knowing the rate in advance http://www.washingtonpost.com/lifest...1f9_story.html . It is a plain ripoff (2.7% scalp over Visa rates including our card fees (4.8% gross)).

Anyone else been DCCed on a mail/phone/fax order?


Edit 2:40AM: The hotel involved decided to comp the DCC scalp to the cardholder in full. So I've struck out its name. Hotel claims their DCC provider has promised them "best rate guarantee" - apparently not. I'm still leaving the other info here, this bank should never have processed a transaction on a mail order-type transaction.