Jan 18, 2014, 10:10 pm
Last edit by: emilio911
What is it?
Dynamic Currency Conversion (DCC) is a "service" some merchants and ATM operators offer that will charge a cardholder in the native currency of the card rather than the local currency. A more complete definition and examples are available via this Wikipedia article on DCC. While sold as a convenience to cardholders traveling outside of their home country, it is a pure profit play by the merchants. You may end up paying a fee of up to 8% over the purchase price for accepting DCC. Always decline DCC and asked to be billed in the local currency!
Where will I see it?
You can be hit with DCC anywhere there is a difference between your debit or credit card's denominated currency and the currency of the location where you're trying to use the card. The most common example will be at a merchant overseas, but now some ATMs are offering the service too. While many US cardholders complain about getting tricked into accepting DCC overseas, some merchants in the US have started to use DCC as well.
What is the issue?
Unless you're the merchant or ATM operator, there isn't much benefit to using DCC. Some customers say they prefer knowing exactly how much they'll be charged in their home currency or may not know the exchange rate of the place where they are visiting. For example, if you are in Prague for two days and you don't know how much the Czech Koruna is worth relative to the US Dollar, you might feel more comfortable knowing that you're buying an item for $205.00 versus 4000 CZK. However, the real exchange rate as of January 18, 2014 would place 4000 CZK at $197.18. You just paid an extra $7.82 for the "convenience" of knowing how much you'd be charged!
DCC often charges about a 4% premium over the true exchange rate. The problems don't stop there since many US banks still charge a 3% foreign transaction fee (FTF) for purchases made outside of the US. Not only would you get hit with the $205.00 charge, you could also find yourself facing a total charge of $211.15 if your card has a 3% FTF.
This is a pure money grab from the merchants, and it's billed as an easy way to squeeze additional revenue out of the transaction. Numerous [1, 2] articles have talked about DCC duping many consumers. Discover even has a warning about being tricked into DCC when using a card abroad.
For example, this FlyerTalk member reported that Avis charged his Saudi credit card in Saudi riyals instead of USD for a car rental in Florida without his consent. This has also been a trend for hotels, particularly large chains as indicated here and here.
DCC is simply not worth it for the consumer. Unless you like paying a convenience fee of up to 5% of the total transaction just to know how much you will be billed, you should always decline DCC and ask to be billed in local currency when handing over your card.
Furthermore, it is in your interest to obtain a card that has a 0% FTF. FlyerTalk member kebosabi maintains a fairly comprehensive spreadsheet of EMV-enabled cards ideal for overseas travel, many of which offer a low or 0% FTF as a feature. There is also a wiki at FlyerGuide of various FTF of debit and credit cards.
What can I do to avoid DCC?
American Express currently does not support DCC on its network, so you are safe from DCC if using an American Express card. However, Visa and MasterCard card networks can support DCC, so be vigilant when purchasing abroad with a Visa or MasterCard branded card. There have been reports of being charged DCC with a Discover card in China [citation needed], but primarily the issue is happening with Visa and MasterCard cards.
Before handing your card to the merchant, always specify clearly that you want to be charged in the local currency and that you do not want DCC. For some transactions, you retain control of your card as you dip it into a chip reader and can view on a screen to select which currency you want to use for the transaction. Always select the local currencyto get the best exchange rate. Do not select the card's native currency!
Similarly, for ATM withdrawals, make sure you decline any kind of conversions. Some good examples of what to look for when using an ATM overseas are here and here. You're probably coming off of a long flight and fatigued, but educating yourself beforehand can save you from getting ripped off. The user interfaces on almost all of these ATMs are set up to encourage you to take the bait, and you have to be extremely vigilant not to fall for it.
If you are doing a PIN-based transaction, you should have the opportunity to review the total amount and denomination of the transaction before entering your PIN. If you are doing a signature transaction and the merchant has processed your transaction with DCC, cross out the amount and write "DCC refused" on the receipt. Do not sign the receipt, and demand that the merchant reverse the transaction and run it in the local currency. If no verification is required due to a small purchase amount, ask the merchant to reverse the charge and repeat the transaction using local currency. If all else fails, file a dispute with your card issuer when you return home. Even if it's immaterial, the banks will get the message like they did with EMV.
Some merchants will claim that their systems have to bill you in your native currency. This is a complete lie. But just like a mag stripe only card, this is battle where you have to be prepared. Don't settle for merchants claiming that "it has to be done this way" or "pay cash if you don't want this". Be prepared to walk away, and, if you must complete the transaction, write "DCC refused & merchant didn't give a choice" on the receipt and cross out the amount. Let the merchant know that you will be filing a dispute with your bank.
Disabling DCC
Disabling DCC on ANZ terminals in Australia
ANZ markets DCC as Customer Preferred Currency (CPC). Terminal operators can contact ANZ Merchant Services at 1800 039 025 to have this feature disabled. Currently, your Visa or MasterCard will be subjected to DCC if denominated in: CAD, CHF, DKK, EUR, GBP, HKD, JPY, MYR, NOK, NZD, SEK, SGD, THB, USD, or ZAR. All DCC transactions on ANZ will cause a 2.5% markup. Steps to avoid DCC:
If you see a signature slip with DCC verbiage and a checkbox indicating a currency selection, kindly ask the merchant to void the transaction. If it's a PIN-based transaction, you have an additional opportunity to cancel the transaction because it will ask for your PIN a second time. For instance, if you see "EUR 17.29 KEY PIN" refuse to enter your PIN and start again.
Disabling DCC in China
There are many reports of forced DCC in China, and there is a great thread [closed to new posts] on DCC in China on the the China Destinations forum.
Disabling DCC on Bankcomm terminals in Beijing http://www.hongkongcard.com/forum/fo...p?id=12272&p=2 #19
jair101's DCC instructions of March 2011 http://www.etveg.com/misc/DCC_China.pdf
Disabling DCC in Eurozone and UK
DCC offered in tourist traps (Harrods Knightsbridge/Galleries Lafayette Montparnesse/El Cortes Ingles Grand Via Madrid)
Unlike the rest of the world, Visa Europe does not require merchants to collect a ticked box on the slip (presumably because merchants there don't keep signed slips under Chip-and-PIN)
El Cortes Ingles collects a signature electronically and the DCC selection is made on the signature pad - the choice is respected.
Harrods and GL rely on cashier input in the POS for the currency choice - the cashier may forget to ask. The POS do not offer voiding (only refunds), but since you're given a slip to sign the best thing to do is to deface it before signing and submit chargeback request to issuer bank on return home.
There may be smaller merchants who also collect DCC but I seemed to have pre-empted most of them by saying "charge Euros (Pounds) please"
In Spain all merchants by law are required to provide you with a complaint form called an hoja de reclamaciones if requested. The form has two carbon copies. The customer retains one copy as a record of the complaint. The merchant maintains another copy, and the third is sent to the local consumer protection bureau. Merchants are also required to post a sign conspicuously informing the customer of the right to complain (usually in Spanish and English). Do not accept the lie that they don't have any forms. This is illegal, and you are able to call the police if the merchant refuses to provide you with this official form. It's interesting to see merchants start to squirm when you know the rules, and most merchants will start to be accommodating after you mention it. (Please still fill out the form even if the merchant cooperates after mentioning it because these are likely the merchants who won't otherwise change their behavior.)
Disabling DCC in Hong Kong and Macau
Hong Kong and Macau can get as non-compliant as China, possibly because many acquirers have cross-border operations and know they can get away with non-compliant firmware and procedures.
In practice, if you are given a DCC slip, and the cashier has not taken a choice before giving you your copy, the slip will be processed in your home currency - be prepared to dispute.
Unable to disable Global Payments DCC in Hong Kong instance #1, instance #2
Unable to disable DBS DCC in Fortress Electronics HK
Unable to disable BoC DCC in Free Duty HK
Disabling DCC in Japan and Korea
Japan's just starting out http://www.flyertalk.com/forum/japan...ing-japan.html and http://www.hongkongcard.com/forum/fo...p?id=3939&p=17 #168 but there are no reports I know of where cardholders are compelled to use DCC against their will.
Korea is also not much affected by DCC but where offered, trying to opt out is harder than Japan due to the language barrier (both verbal and written)
http://www.hongkongcard.com/forum/fo...hp?id=4303&p=3 #23
http://www.hongkongcard.com/forum/fo...p?id=12272&p=2 #11
Disabling DCC in the Maldives
Disabling DCC on Global Payment terminals in the Maldives
Disabling DCC in Thailand and Taiwan
DCC present but generally not an issue. Cashier will generate quote slip is usually generated and pass to cardholder. When cardholder refuses, a verbage-free slip denominated in THB/TWD will be produced.
Certain Taiwan hotels may take deposits in cardholder currency. But these are only pre-authorisations and can be voided in full for TWD-only final checkout payments.
Disabling DCC on Websites
Airbnb - (Since the "loophole" seem not to work anymore, please report if you chargeback the DCC.
)
Hotwire - You need to select your preferred currency before making a search.
PayPal - The instructions to stop the DCC on a recurring charge are here.
I got duped by DCC already before I found this thread. Is there anything I can do?
If you've been hit with DCC and the merchant did not follow the Visa/MC rules, you should file a dispute with your card issuer. Even if the transaction is a small amount, it's worth it to dispute the charge on principle. Do not let merchants get away with this scam uncontested!
If you were not clearly given a choice of currencies and did not specifically communicate a preference to be billed in your card's native currency - if you did not accept DCC - then you have recourse when filing a dispute with your card issuer. The Visa Product and Service Rules clearly state (p 339):
You can even use terminology from Visa Product and Service Rules when filing the dispute, giving Reason Code 76: Incorrect Currency or Transaction Code. Reason Code 76 is used when the transaction was processed with an incorrect transaction code, or an incorrect currency code, or one of the following:
MasterCard's rules also clearly state that the POI Currency Conversion must be decided by both the merchant and customer. When filing a dispute with a MasterCard, list chargeback Reason Code 4846 from the MasterCard Chargeback Guide, which covers POI currency conversion disputes in the following circumstances:
You do have a choice of currencies. Exercise that choice!
Do not get taken by surprise when faced with DCC, and know your options. As Visa/MC purport, you do have a choice of currencies, but you need to make that choice heard! Don't be complacent in this sneaky tactic by some merchants to pad revenues.
Before going to a different country, get educated. Understand the exchange rate relative to your native currency. Know how to recognize when the merchant is trying to force DCC on the transaction, and pull out all of the stops to make sure it doesn't happen to you.
If you have a chip-and-PIN credit card, it's easier to control the transaction to try to prevent DCC. With chip-and-signature, if you get an uncooperative merchant, deface the merchant's copy of the receipt. Write LOCAL OPTION NOT OFFERED, cross out the DCC currency amount, and sign the receipt.
This will give additional evidence when filing a dispute to get the DCC charges refunded. When filing the dispute, you can use the Visa Exchange Rate Calculator or MasterCard's Currency Conversion Tool to determine the Visa or MasterCard exchange rate on the date the transaction posted to your credit card. Compare this to the DCC value to figure out the amount by which the merchant overcharged you. Don't forget to add in any Foreign Transaction Fee if your card has one. (If it does, you should really consider finding a card for use overseas without a FTF.)
Example Images (click for a larger image)
Hotel receipts in China, the Netherlands, and Dubai respectively:
Purchase receipts in China and Korea:
Cancelled translation in Hong Kong:
Novotel in Shenzen:
Dynamic Currency Conversion (DCC) is a "service" some merchants and ATM operators offer that will charge a cardholder in the native currency of the card rather than the local currency. A more complete definition and examples are available via this Wikipedia article on DCC. While sold as a convenience to cardholders traveling outside of their home country, it is a pure profit play by the merchants. You may end up paying a fee of up to 8% over the purchase price for accepting DCC. Always decline DCC and asked to be billed in the local currency!
Where will I see it?
You can be hit with DCC anywhere there is a difference between your debit or credit card's denominated currency and the currency of the location where you're trying to use the card. The most common example will be at a merchant overseas, but now some ATMs are offering the service too. While many US cardholders complain about getting tricked into accepting DCC overseas, some merchants in the US have started to use DCC as well.
What is the issue?
Unless you're the merchant or ATM operator, there isn't much benefit to using DCC. Some customers say they prefer knowing exactly how much they'll be charged in their home currency or may not know the exchange rate of the place where they are visiting. For example, if you are in Prague for two days and you don't know how much the Czech Koruna is worth relative to the US Dollar, you might feel more comfortable knowing that you're buying an item for $205.00 versus 4000 CZK. However, the real exchange rate as of January 18, 2014 would place 4000 CZK at $197.18. You just paid an extra $7.82 for the "convenience" of knowing how much you'd be charged!
DCC often charges about a 4% premium over the true exchange rate. The problems don't stop there since many US banks still charge a 3% foreign transaction fee (FTF) for purchases made outside of the US. Not only would you get hit with the $205.00 charge, you could also find yourself facing a total charge of $211.15 if your card has a 3% FTF.
This is a pure money grab from the merchants, and it's billed as an easy way to squeeze additional revenue out of the transaction. Numerous [1, 2] articles have talked about DCC duping many consumers. Discover even has a warning about being tricked into DCC when using a card abroad.
For example, this FlyerTalk member reported that Avis charged his Saudi credit card in Saudi riyals instead of USD for a car rental in Florida without his consent. This has also been a trend for hotels, particularly large chains as indicated here and here.
DCC is simply not worth it for the consumer. Unless you like paying a convenience fee of up to 5% of the total transaction just to know how much you will be billed, you should always decline DCC and ask to be billed in local currency when handing over your card.
Furthermore, it is in your interest to obtain a card that has a 0% FTF. FlyerTalk member kebosabi maintains a fairly comprehensive spreadsheet of EMV-enabled cards ideal for overseas travel, many of which offer a low or 0% FTF as a feature. There is also a wiki at FlyerGuide of various FTF of debit and credit cards.
What can I do to avoid DCC?
American Express currently does not support DCC on its network, so you are safe from DCC if using an American Express card. However, Visa and MasterCard card networks can support DCC, so be vigilant when purchasing abroad with a Visa or MasterCard branded card. There have been reports of being charged DCC with a Discover card in China [citation needed], but primarily the issue is happening with Visa and MasterCard cards.
Before handing your card to the merchant, always specify clearly that you want to be charged in the local currency and that you do not want DCC. For some transactions, you retain control of your card as you dip it into a chip reader and can view on a screen to select which currency you want to use for the transaction. Always select the local currencyto get the best exchange rate. Do not select the card's native currency!
Similarly, for ATM withdrawals, make sure you decline any kind of conversions. Some good examples of what to look for when using an ATM overseas are here and here. You're probably coming off of a long flight and fatigued, but educating yourself beforehand can save you from getting ripped off. The user interfaces on almost all of these ATMs are set up to encourage you to take the bait, and you have to be extremely vigilant not to fall for it.
If you are doing a PIN-based transaction, you should have the opportunity to review the total amount and denomination of the transaction before entering your PIN. If you are doing a signature transaction and the merchant has processed your transaction with DCC, cross out the amount and write "DCC refused" on the receipt. Do not sign the receipt, and demand that the merchant reverse the transaction and run it in the local currency. If no verification is required due to a small purchase amount, ask the merchant to reverse the charge and repeat the transaction using local currency. If all else fails, file a dispute with your card issuer when you return home. Even if it's immaterial, the banks will get the message like they did with EMV.
Some merchants will claim that their systems have to bill you in your native currency. This is a complete lie. But just like a mag stripe only card, this is battle where you have to be prepared. Don't settle for merchants claiming that "it has to be done this way" or "pay cash if you don't want this". Be prepared to walk away, and, if you must complete the transaction, write "DCC refused & merchant didn't give a choice" on the receipt and cross out the amount. Let the merchant know that you will be filing a dispute with your bank.
Disabling DCC
Disabling DCC on ANZ terminals in Australia
ANZ markets DCC as Customer Preferred Currency (CPC). Terminal operators can contact ANZ Merchant Services at 1800 039 025 to have this feature disabled. Currently, your Visa or MasterCard will be subjected to DCC if denominated in: CAD, CHF, DKK, EUR, GBP, HKD, JPY, MYR, NOK, NZD, SEK, SGD, THB, USD, or ZAR. All DCC transactions on ANZ will cause a 2.5% markup. Steps to avoid DCC:
- Insert, swipe, or tap your payment card
- Have the cashier select credit (CR)
- The terminal will display CREDIT ACCOUNT
- If applicable, enter your PIN
- The terminal will display PROCESSING \ PLEASE WAIT
- The terminal will display EXCH <exchange rate> \ <currency> <amount> \ ACCEPT RATE? \ ENTER=YES CLR=NO
- Instruct the cashier to press the yellow CLEAR (CLR) button (If entering a PIN, you can retain the terminal to perform this step yourself. If entering a signature, you can ask for the terminal to control this process, not indicating that it's a chip-and-signature card.)
- The transaction should now process without DCC
If you see a signature slip with DCC verbiage and a checkbox indicating a currency selection, kindly ask the merchant to void the transaction. If it's a PIN-based transaction, you have an additional opportunity to cancel the transaction because it will ask for your PIN a second time. For instance, if you see "EUR 17.29 KEY PIN" refuse to enter your PIN and start again.
Disabling DCC in China
There are many reports of forced DCC in China, and there is a great thread [closed to new posts] on DCC in China on the the China Destinations forum.
Disabling DCC on Bankcomm terminals in Beijing http://www.hongkongcard.com/forum/fo...p?id=12272&p=2 #19
jair101's DCC instructions of March 2011 http://www.etveg.com/misc/DCC_China.pdf
Disabling DCC in Eurozone and UK
DCC offered in tourist traps (Harrods Knightsbridge/Galleries Lafayette Montparnesse/El Cortes Ingles Grand Via Madrid)
Unlike the rest of the world, Visa Europe does not require merchants to collect a ticked box on the slip (presumably because merchants there don't keep signed slips under Chip-and-PIN)
El Cortes Ingles collects a signature electronically and the DCC selection is made on the signature pad - the choice is respected.
Harrods and GL rely on cashier input in the POS for the currency choice - the cashier may forget to ask. The POS do not offer voiding (only refunds), but since you're given a slip to sign the best thing to do is to deface it before signing and submit chargeback request to issuer bank on return home.
There may be smaller merchants who also collect DCC but I seemed to have pre-empted most of them by saying "charge Euros (Pounds) please"
In Spain all merchants by law are required to provide you with a complaint form called an hoja de reclamaciones if requested. The form has two carbon copies. The customer retains one copy as a record of the complaint. The merchant maintains another copy, and the third is sent to the local consumer protection bureau. Merchants are also required to post a sign conspicuously informing the customer of the right to complain (usually in Spanish and English). Do not accept the lie that they don't have any forms. This is illegal, and you are able to call the police if the merchant refuses to provide you with this official form. It's interesting to see merchants start to squirm when you know the rules, and most merchants will start to be accommodating after you mention it. (Please still fill out the form even if the merchant cooperates after mentioning it because these are likely the merchants who won't otherwise change their behavior.)
Disabling DCC in Hong Kong and Macau
Hong Kong and Macau can get as non-compliant as China, possibly because many acquirers have cross-border operations and know they can get away with non-compliant firmware and procedures.
In practice, if you are given a DCC slip, and the cashier has not taken a choice before giving you your copy, the slip will be processed in your home currency - be prepared to dispute.
Unable to disable Global Payments DCC in Hong Kong instance #1, instance #2
Unable to disable DBS DCC in Fortress Electronics HK
Unable to disable BoC DCC in Free Duty HK
Disabling DCC in Japan and Korea
Japan's just starting out http://www.flyertalk.com/forum/japan...ing-japan.html and http://www.hongkongcard.com/forum/fo...p?id=3939&p=17 #168 but there are no reports I know of where cardholders are compelled to use DCC against their will.
Korea is also not much affected by DCC but where offered, trying to opt out is harder than Japan due to the language barrier (both verbal and written)
http://www.hongkongcard.com/forum/fo...hp?id=4303&p=3 #23
http://www.hongkongcard.com/forum/fo...p?id=12272&p=2 #11
Disabling DCC in the Maldives
Disabling DCC on Global Payment terminals in the Maldives
Disabling DCC in Thailand and Taiwan
DCC present but generally not an issue. Cashier will generate quote slip is usually generated and pass to cardholder. When cardholder refuses, a verbage-free slip denominated in THB/TWD will be produced.
Certain Taiwan hotels may take deposits in cardholder currency. But these are only pre-authorisations and can be voided in full for TWD-only final checkout payments.
Disabling DCC on Websites
Airbnb - (Since the "loophole" seem not to work anymore, please report if you chargeback the DCC.
)Hotwire - You need to select your preferred currency before making a search.
PayPal - The instructions to stop the DCC on a recurring charge are here.
I got duped by DCC already before I found this thread. Is there anything I can do?
If you've been hit with DCC and the merchant did not follow the Visa/MC rules, you should file a dispute with your card issuer. Even if the transaction is a small amount, it's worth it to dispute the charge on principle. Do not let merchants get away with this scam uncontested!
If you were not clearly given a choice of currencies and did not specifically communicate a preference to be billed in your card's native currency - if you did not accept DCC - then you have recourse when filing a dispute with your card issuer. The Visa Product and Service Rules clearly state (p 339):
- Merchants that offer DCC must be compliant with the regulations
- Inform the cardholder that DCC is optional
- Not impose any additional requirements to use local currency
- Not use any language or procedures that may cause the cardholder to choose DCC by default
- Not convert a transaction in the local currency to the card's billing currency after the transaction has completed
- Ensure that the cardholder expressly agrees to DCC
You can even use terminology from Visa Product and Service Rules when filing the dispute, giving Reason Code 76: Incorrect Currency or Transaction Code. Reason Code 76 is used when the transaction was processed with an incorrect transaction code, or an incorrect currency code, or one of the following:
- Merchant did not deposit a transaction receipt in the country where the transaction occurred
- Cardholder was not advised that Dynamic Currency Conversion (DCC) would occur
- Cardholder was refused the choice of paying in the merchants local currency
- Merchant processed a credit refund and did not process a reversal or adjustment within 30 calendar days for a transaction receipt processed in error
MasterCard's rules also clearly state that the POI Currency Conversion must be decided by both the merchant and customer. When filing a dispute with a MasterCard, list chargeback Reason Code 4846 from the MasterCard Chargeback Guide, which covers POI currency conversion disputes in the following circumstances:
- The cardholder states that he or she was not given the opportunity to choose the desired currency in which the transactions was completed or did not agree to the currency of the transaction, or
- POI currency conversion took place into a currency that is not the cardholder's billing currency, or
- POI currency conversion took place when the goods or services were priced in the cardholder's billing currency, or
- POI currency conversion took place when cash was disbursed in the cardholdeer's billing currency.
You do have a choice of currencies. Exercise that choice!
Do not get taken by surprise when faced with DCC, and know your options. As Visa/MC purport, you do have a choice of currencies, but you need to make that choice heard! Don't be complacent in this sneaky tactic by some merchants to pad revenues.
Before going to a different country, get educated. Understand the exchange rate relative to your native currency. Know how to recognize when the merchant is trying to force DCC on the transaction, and pull out all of the stops to make sure it doesn't happen to you.
If you have a chip-and-PIN credit card, it's easier to control the transaction to try to prevent DCC. With chip-and-signature, if you get an uncooperative merchant, deface the merchant's copy of the receipt. Write LOCAL OPTION NOT OFFERED, cross out the DCC currency amount, and sign the receipt.
This will give additional evidence when filing a dispute to get the DCC charges refunded. When filing the dispute, you can use the Visa Exchange Rate Calculator or MasterCard's Currency Conversion Tool to determine the Visa or MasterCard exchange rate on the date the transaction posted to your credit card. Compare this to the DCC value to figure out the amount by which the merchant overcharged you. Don't forget to add in any Foreign Transaction Fee if your card has one. (If it does, you should really consider finding a card for use overseas without a FTF.
)Example Images (click for a larger image)
Hotel receipts in China, the Netherlands, and Dubai respectively:
Purchase receipts in China and Korea:
Cancelled translation in Hong Kong:
Novotel in Shenzen:
Dynamic Currency Conversion (DCC) [2014-2016]
Apr 19, 2016 | 11:45 pm
#2416
Original Poster
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,961
Yep, most AmEx products on offer are ~ 3% FTF. Centurion, Platinum, Delta (within the last 2 years), and SPG (within the last year) are 0% FTF. What I typically do is book the hotel and do the preauth with my Platinum card. I will then settle the bill with my affinity card (Citi Hilton Visa or Chase Marriott Visa). For smaller transactions, as I've said before, I just use cash or a contactless stored value card like Octopus or EasyCard.
Apr 20, 2016 | 9:59 am
#2417
Join Date: Aug 2015
Posts: 87
Yep, most AmEx products on offer are ~ 3% FTF. Centurion, Platinum, Delta (within the last 2 years), and SPG (within the last year) are 0% FTF. What I typically do is book the hotel and do the preauth with my Platinum card. I will then settle the bill with my affinity card (Citi Hilton Visa or Chase Marriott Visa). For smaller transactions, as I've said before, I just use cash or a contactless stored value card like Octopus or EasyCard.
Apr 20, 2016 | 11:45 am
#2418
Join Date: May 2000
Location: Houston, TX, USA
Programs: UA Platinum, AA Lifetime Platinum, DL Platinum, Honors Diamond, Bonvoy Ambassador, Hertz Platinum
Posts: 8,179
I'd say in that case, Amex would be the way to go. I'd be surprised if DCC ever was as low as 3%.
Apr 23, 2016 | 2:54 pm
#2419
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 30,343
Anyone has recent experiences in Spain?
Just read TripAdvisor reviews on the 2 AC hotels we will use in Madrid. One poster complained about being DCCed $40. The hotel replied about the transaction was automatic and they had no option, that it was up to the financial institution the poster banked with on how the charge was processed.
Of course this is a total lie. I wonder what is in the Wili about Spain on the complaint form still holds true.
Just read TripAdvisor reviews on the 2 AC hotels we will use in Madrid. One poster complained about being DCCed $40. The hotel replied about the transaction was automatic and they had no option, that it was up to the financial institution the poster banked with on how the charge was processed.
Of course this is a total lie. I wonder what is in the Wili about Spain on the complaint form still holds true.
The only annoying thing is one of the AC hotels authorized the card used for booking a day BEFORE arrival, on refundable booking, and at the wrong rate (the rate was reduced after a Marriott Look No Further guarantee was approved and correctly reflected on Marriott site.) It also tried to authorize an unknown amount on a point stay booking. But the card on file had expired as the booking was made last Dec and the card expired in Feb. At check in I was told the card was invalid and I just gave them the new card. Much later I Found an email that I must provide a new card immediately (a day before arrival, on a point stay) otherwise the reservation would be canceled. There is no telling how much the hotel tries to authorize. This is the first time on hundreds nights of hotel stay around the world that I encounter a hotel would authorize the card on file a day before guest check in, on refundable booking and on award nights. Crowne Plaza MAD airport did put 10 euro test charge on the card on the day of arrival at around noon time per the Chase email alert on International authorization, but seemed to automatically reverse the charge once the card was proven being "good card" as I saw both the billing and "return" on the Chase IHG card online.
Last edited by Happy; Apr 23, 2016 at 3:14 pm
Apr 23, 2016 | 3:57 pm
#2420
Join Date: May 2000
Location: Houston, TX, USA
Programs: UA Platinum, AA Lifetime Platinum, DL Platinum, Honors Diamond, Bonvoy Ambassador, Hertz Platinum
Posts: 8,179
The only annoying thing is one of the AC hotels authorized the card used for booking a day BEFORE arrival, on refundable booking... It also tried to authorize an unknown amount on a point stay booking. But the card on file had expired as the booking was made last Dec and the card expired in Feb. ... Much later I Found an email that I must provide a new card immediately (a day before arrival, on a point stay) otherwise the reservation would be canceled. ... This is the first time on hundreds nights of hotel stay around the world that I encounter a hotel would authorize the card on file a day before guest check in, on refundable booking and on award nights.
Apr 23, 2016 | 4:39 pm
#2421
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 30,343
I have started to see this at Hiltons in NYC in the past year or so. When I thought about it a bit, it makes total sense. Whether it be a cancelable post-paid reservation, or an award reservation, the credit card is on file as a guarantee to pay the no-show penalty should you no show. Without a valid credit card on file to which the penalty can be charged, the reservation is not valid. I would imagine that properties that historically had too many "credit card guaranteed" reservations that they were unable to collect the no-show penalty from would be the ones to implement such a policy.
Apr 26, 2016 | 8:09 am
#2422
Join Date: Jul 2007
Location: Berlin
Programs: LH SEN, BA Gold, SK Gold; Accor Diamond; IHG Diamond-Amb; Meli/HH/Bonvoy Gold
Posts: 5,682
That's good to know -- thanks for letting us know. I didn't have any DCC problems in Madrid, either: department store machines offered a choice, everyone else just charged EUR. But that was in 2014 so I had been concerned by some of the reports here.
Apr 26, 2016 | 1:18 pm
#2423
Join Date: Dec 2007
Location: Cambridge, UK
Posts: 262
Got back from Malta last week. As far as I can see, there aren't any reports from this country. (For those who have never heard of Malta, it is a beautiful island nation located between Italy and Libya. Ninth smallest country in the world, member of the EU and uses the Euro as a currency. Officially bi-lingual Maltese and English, many Italian speakers and plenty of ex-pats from around Europe.)
Most retailers had two card terminals (even at each supermarket checkout). One from Bank of Valletta (BOV) and one from Global Payments (HSBC). For local debit cards without Visa/Mastercard, they selected the machine based on the card presented. For foreign cards, it seemed to be a mix as to which machine was used. Even visiting the same restaurant on two occassions, I ended up with one BOV receipt and one HSBC receipt.
In terms of DCC, only the HSBC machines offered it. I was offered DCC four times and all the staff were clear and knowledgable about the "service". All offered a choice of Sterling or Euro before entering the PIN. In one store, the cashier even asked about my choice of currency just on sight of my Halifax card - her response was "good choice" when I opted for Euros! Opting out was easy: green to select DCC or red to opt out.
I found this article in a local newspaper to be quite interesting, where DCC is sold as being very beneficial and free of charge to customers: http://www.independent.com.mt/articl...lux-6736136636
Most retailers had two card terminals (even at each supermarket checkout). One from Bank of Valletta (BOV) and one from Global Payments (HSBC). For local debit cards without Visa/Mastercard, they selected the machine based on the card presented. For foreign cards, it seemed to be a mix as to which machine was used. Even visiting the same restaurant on two occassions, I ended up with one BOV receipt and one HSBC receipt.
In terms of DCC, only the HSBC machines offered it. I was offered DCC four times and all the staff were clear and knowledgable about the "service". All offered a choice of Sterling or Euro before entering the PIN. In one store, the cashier even asked about my choice of currency just on sight of my Halifax card - her response was "good choice" when I opted for Euros! Opting out was easy: green to select DCC or red to opt out.
I found this article in a local newspaper to be quite interesting, where DCC is sold as being very beneficial and free of charge to customers: http://www.independent.com.mt/articl...lux-6736136636
Apr 26, 2016 | 2:48 pm
#2424
Join Date: May 2000
Location: Houston, TX, USA
Programs: UA Platinum, AA Lifetime Platinum, DL Platinum, Honors Diamond, Bonvoy Ambassador, Hertz Platinum
Posts: 8,179
I found this article in a local newspaper to be quite interesting, where DCC is sold as being very beneficial and free of charge to customers: http://www.independent.com.mt/articl...lux-6736136636
One of the standout features of our Dynamic Currency Conversion service is that there are no undisclosed fees, so customers will know exactly what they are paying at the point of sale.
Yea, the fee for DCC is "not undisclosed" only if you know that day's actual forex rate between the two currencies, and convert the native amount of the transaction into the other currency yourself and compare that with the DCC offer.
Apr 26, 2016 | 3:03 pm
#2425
Join Date: Jul 2007
Posts: 1,762
In the United States, as dcc developed first in Ireland and metastasized throughout the torist world, some of the near criminal large banks saw one of their most lucrative fees, the foreign currency exchange fee begin to become less. So their ressponse was to change the fee to a foreign transaction fee. With many of these near criminal banks (Bank of America, citibank, JP Morgan Chase are prime examples), foreign transactions are nailed witn a 3% fee so being dcc'd does not prefvent the imposition of this fee in the slightest.
Apr 27, 2016 | 8:24 am
#2426
Original Poster
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,961
[QUOTE=BruceyBonus;26538678]
In terms of DCC, only the HSBC machines offered it. I was offered DCC four times and all the staff were clear and knowledgable about the "service". All offered a choice of Sterling or Euro before entering the PIN. In one store, the cashier even asked about my choice of currency just on sight of my Halifax card - her response was "good choice" when I opted for Euros! Opting out was easy: green to select DCC or red to opt out./QUOTE]
Usually the "good choice" is the opposite.
Also, the problem with green/red is that a person who is unaware of DCC might think that red will cancel the transaction. The whole thing is setup for you to take the bait, against Visa/MC policy.
In terms of DCC, only the HSBC machines offered it. I was offered DCC four times and all the staff were clear and knowledgable about the "service". All offered a choice of Sterling or Euro before entering the PIN. In one store, the cashier even asked about my choice of currency just on sight of my Halifax card - her response was "good choice" when I opted for Euros! Opting out was easy: green to select DCC or red to opt out./QUOTE]
Usually the "good choice" is the opposite.
Also, the problem with green/red is that a person who is unaware of DCC might think that red will cancel the transaction. The whole thing is setup for you to take the bait, against Visa/MC policy.
Apr 27, 2016 | 8:57 am
#2427
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 22,113
I found this article in a local newspaper to be quite interesting, where DCC is sold as being very beneficial and free of charge to customers: http://www.independent.com.mt/articl...lux-6736136636
Apr 27, 2016 | 12:43 pm
#2428
Join Date: Jan 2013
Location: Hawai'i Nei
Programs: Au: HA, UA, Marriott, Hilton; GE
Posts: 7,810
I'm just curious about the editorial policy of that newspaper. Next time I have to run some propaganda piece for Our Dear Leader or need some supposedly disinterested English-language mouthpiece to extol the virtues of Chinese rule over Tibet I know who to call. Probably cheaper than hiring black hats to hack BBC.
Apr 29, 2016 | 1:28 pm
#2429
Moderator: Travel Safety/Security, Travel Tools, California, Los Angeles; FlyerTalk Evangelist
Join Date: Dec 2009
Location: LAX
Programs: oneword Emerald
Posts: 24,770
May 8, 2016 | 7:38 pm
#2430
Join Date: Apr 2015
Location: Singapore
Posts: 46
I was recently in Hong Kong for a holiday and used my Visa for 9 transactions (most of them card-present ones) and saw that 8 transactions that has posted are in HKD.
At one of the merchants (Admiralty MTR to purchase Disneyland and Oceanpark tickets), I had a bit of a scare when the sales clerk passed me a slip to indicate HKD/SGD and I ticked HKD. While the final slip given to me indicated I was charged in HKD, it was an offline transaction, and I received a sms notification from my bank that I was charged in SGD (about SGD2 more after accounting for the foreign transaction fee on my card). Subsequently I was relieved that the charge posted in HKD.
At another restaurant in IFC, my friend was presented with the credit card machine, and asked to press the green button to be charged in SGD and red for HKD. Very counter-intuitive, but at least the restaurant and machines were DCC-compliant. For the other transactions, the sales clerks generally charged HKD without asking.
At one of the merchants (Admiralty MTR to purchase Disneyland and Oceanpark tickets), I had a bit of a scare when the sales clerk passed me a slip to indicate HKD/SGD and I ticked HKD. While the final slip given to me indicated I was charged in HKD, it was an offline transaction, and I received a sms notification from my bank that I was charged in SGD (about SGD2 more after accounting for the foreign transaction fee on my card). Subsequently I was relieved that the charge posted in HKD.
At another restaurant in IFC, my friend was presented with the credit card machine, and asked to press the green button to be charged in SGD and red for HKD. Very counter-intuitive, but at least the restaurant and machines were DCC-compliant. For the other transactions, the sales clerks generally charged HKD without asking.