Got hit with DCC in Shanghai airport. I disputed the charge with Chase and they gave me a full credit while they investigate. This is the first time they have investigated, normally they will call and credit the difference.

Let us know what transpires. It looks like they have initiated a Reason Code 76 chargeback.

See my post #325 above re PVG DCC. CSR credited me the amount I asked for twice and sent me a letter confirming the credit immediately afterwards. Curious to see what they do in your case when you have disputed the entire amount.

This has recently started happening in the US too. It seems some retailers like J. Crew or Express have updated their Verifone terminals and it pops up a message asking if you want to pay in USD or local currency.

Forever 21 and Kate Spade have it too, but it's easily avoidable as the terminals are in full view of the customer. In fact, the cashier seemed confused when my sister-in-law commented that she wanted to pay in USD. It was almost an expression indicating, "What other currency would you use to pay?" This was in San Francisco, so one would assume the terminals had seen a number of non-USD denominated cards.

I have yet to see a standalone terminal offer DCC in the US. I'm not saying it doesn't exist in these cases, but the only examples I have seen so far have been chain retailers. There were some data points that Olive Garden and a few other chain restaurants had DCC previously, but I believe this is no longer the case. In case of restaurants, I would say that a customer service oriented culture and desire for a tip would make DCC an unlikely outcome.

Standalone terminals are usually used by smaller businesses/restaurants. Since those are more likely to not be accessible to customers in the US, maybe we'll never really see DCC at those places as a result?

A couple standalone terminals at my local drycleaners have it. After they’ve had issues with my pin (i live in the US but most my cards are from Europe) and DCC they spoke with their bank and had both cancelled. Never had the issue in any restaurants before.

Great they got DCC disabled, not so great they got PIN disabled...

Why? It puts the retailer at unnecessary risk of a fraud chargeback. If I had a shop in the US, and I was paying for a full-featured card terminal and the rates involved, I'd be livid if the processor disabled PIN and I'd tell them where to stick it.

Were you able to opt out successfully? My data points in the US are limited because we only have one non-USD card at home. We never use it since there is a currency exchange fee, and the card doesn't accumulate rewards.

Lost/stolen card fraud is already one of the smallest categories (at least for now) and the extra liability shift only applies if the card is PIN-preferring, so I'd say there's very little additional liability risk for most merchants. Anything that would make using the chip more often is still better than, say, forcing fallback, manually entering the card information or even simply declining to run the card entirely.

Of course, ideally everyone would have customer-facing stuff, but barring a significant increase in contactless payment that ship's probably sailed.

The whole 'refusing to run a PIN preferring card' thing would settle down after a bit anyway, just as there were isolated reports of shops that were chip-enabled early on refusing chip cards. Other chip and signature countries like Hong Kong don't refuse PIN cards. They sigh, but they don't refuse them. Possibly drag you up to enter your PIN (happened to me once), but they accept them.

HK also doesn't have the tipping culture that the US does. A few instances of servers getting stiffed due to the terminal prohibiting tip adjust (not saying that this is happening, but per MC rules it is possible) would probably either get restaurants to disable PIN entirely or simply stop accepting such cards. Of course, that becomes less viable the more of those cards that exist.

Alternatively I suppose they could just rerun the transaction and let customers enter the tip on the terminal but I haven't really seen that happening unless it's something already customer-facing.