Originally Posted by
Majuki
I agree that the issuer could be negative depending on whether or not the issuer charges a foreign currency conversion fee or a foreign transaction fee. Most, if not all, issuers in the US have switched to FTFs for those cards that have them, so you get nicked with the fee whether or not you accept DCC. I know you have indicated that your HK cards impose a conversion fee rather than a transaction fee, so I think they would have more of an incentive to file a chargeback than issuers who charge a FTF.
It's still unclear on the Visa/MC side. Does the option of DCC really increase merchant acceptance? As people become more aware of DCC or realize that using a card would cost 3-7% more over cash, wouldn't this steer people toward using cash for purchases, opposite of what Visa/MC want?
It's similar to gas stations here in some states that allow cash "discounts" over credit prices. With the current price of fuel one pays about 3% more for the credit price. This is particularly common in New Jersey where all stations are full service, and I see most people paying cash for fuel. The mentality is cash is cheaper than credit/debit. That mentality could spread to overseas purchases which is exactly what Visa/MC don't want.
Regarding your last paragraph, we went through a discussion of this and I don't want to kidnap the thread but...although I know several states despite the legislation allowing surcharges on cc's had or still have prohibitions on surcharges, the one in NY was thrown out as a violation of freedom of speech (I finally read the decision and to me it's still a stretch; basically the judge said there really is no difference between a surcharge and a discount for cash so why should a merchant be prohibited from a surcharge when he or she can charge extra simply by calling it a cash discount). But the question is this; does any state, even the ones which prohibit surcharges, enforce the reg against gasoline retailers and do anything about their surcharges hidden as cash discounts? Apologies but I don't see any analogy to dcc.