DCC: Dynamic Currency Conversion (2017-2025)
Feb 20, 2020 | 11:18 pm
#751
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I probably deserve this, but I think I got hit by DCC. I got into a discussion with the acting manager at the Sheraton in Australia. I handed him my credit card. I wasn't paying attention and I let him operated the terminal. There's a difference of about US$7 between the market rate and what I see on my Citi account. I'm still in Sydney right now, but not sure if there is anything that can be done. OMG, so stupid of me not to ask for the terminal...
Feb 20, 2020 | 11:42 pm
#753
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Doesn't MC have a currency calculator online?
I think I might have learned a valuable lesson here. No matter how good of a conversation I have with anyone, I need to operate the terminal!
Feb 20, 2020 | 11:49 pm
#754
Ambassador, Hong Kong and Macau
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Feb 21, 2020 | 8:26 am
#755
Original Poster
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,983
Yes, this is a surcharge that is almost universal at hotels in Australia these days. DCC would be a more noticeable discrepancy ~4-6% higher (on top of the surcharge btw).
Sep 27, 2020 | 4:03 pm
#756
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Join Date: Jan 2014
Location: San Diego, CA
Programs: GE, Marriott Platinum
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PayPal has some upcoming changes to their Terms of Service that indicate that the DCC spread is increasing to 4%:
This particular change will take effect on November 9, 2020. Hopefully no one here is specifically opting into DCC, but it might be a good idea to re-verify your conversion settings prior to that date.
Amendments to the PayPal Account User Agreement
[...]
[...]
- When you use your PayPal account for a transaction that involves a PayPal currency conversion, the currency conversion spread will be as provided on our Fees page under the heading Currency conversion (or such other amount as may disclosed to you during the transaction). Upon the effective date of this update, the currency conversion spread for goods and services or send-money transactions will be 4%.
Sep 27, 2020 | 5:15 pm
#757
Join Date: May 2003
Location: Paris
Programs: AA LT Plat (4m+), AF Plat, A3 Gold, Hyatt Lifetime Globalist, Marriott Plat, IHG Plat/Ambassador
Posts: 2,724
PayPal has some upcoming changes to their Terms of Service that indicate that the DCC spread is increasing to 4%:
[/list]This particular change will take effect on November 9, 2020. Hopefully no one here is specifically opting into DCC, but it might be a good idea to re-verify your conversion settings prior to that date.
[/list]This particular change will take effect on November 9, 2020. Hopefully no one here is specifically opting into DCC, but it might be a good idea to re-verify your conversion settings prior to that date.
I have had to be very meticulous.... I already am meticulous but from what I saw, adjusting those settings can't be done for all transactions... you have to do it each time. At least using my American PayPal account from Europe.
Sep 27, 2020 | 5:20 pm
#758
Join Date: May 2003
Location: Paris
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Been to Aus/NZ many times, last time in November and I remember confronting Amex Australia on Twitter as to why there was a consistent mark-up...
Their public response was that "It simply isn't true that merchants in Australia charge an extra fee for using an Amex"... yeah, right...
Sep 27, 2020 | 9:01 pm
#759
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Join Date: Mar 2010
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What is up with Australia and NZ in this regard? I always found it super tacky to be at a 5-star hotel that couldn't absorb the 1.5% credit card fee...
Been to Aus/NZ many times, last time in November and I remember confronting Amex Australia on Twitter as to why there was a consistent mark-up...
Their public response was that "It simply isn't true that merchants in Australia charge an extra fee for using an Amex"... yeah, right...
Been to Aus/NZ many times, last time in November and I remember confronting Amex Australia on Twitter as to why there was a consistent mark-up...
Their public response was that "It simply isn't true that merchants in Australia charge an extra fee for using an Amex"... yeah, right...
Sep 27, 2020 | 9:19 pm
#760
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 22,159
OMG! You're right! I totally forgot about that. I just quickly checked the math and there's roughly a 1.5% difference between market rate and what's on my Citi account. I think Marriott does have a warning on their website about a surcharge.
Doesn't MC have a currency calculator online?
I think I might have learned a valuable lesson here. No matter how good of a conversation I have with anyone, I need to operate the terminal!
Doesn't MC have a currency calculator online?
I think I might have learned a valuable lesson here. No matter how good of a conversation I have with anyone, I need to operate the terminal!
Sep 27, 2020 | 9:38 pm
#761
Join Date: Feb 2012
Posts: 4,631
This decision was made when credit cards were first introduced and were not used in most/all transactions. It was thought outrageous at that time that Party A could order service, and Party B would have to pay the bill. However the CC banks succeeded in making CC surcharges illegal in the US, and possibly other countries. Now several decades later we no longer think that the banks' skimming on most of retail transactions is anything but normal.
Sep 27, 2020 | 10:37 pm
#762
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Join Date: Mar 2010
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This decision was made when credit cards were first introduced and were not used in most/all transactions. It was thought outrageous at that time that Party A could order service, and Party B would have to pay the bill. However the CC banks succeeded in making CC surcharges illegal in the US, and possibly other countries. Now several decades later we no longer think that the banks' skimming on most of retail transactions is anything but normal.
Sep 27, 2020 | 11:44 pm
#763
FlyerTalk Evangelist
Join Date: Jan 2014
Location: San Diego, CA
Programs: GE, Marriott Platinum
Posts: 15,749
This decision was made when credit cards were first introduced and were not used in most/all transactions. It was thought outrageous at that time that Party A could order service, and Party B would have to pay the bill. However the CC banks succeeded in making CC surcharges illegal in the US, and possibly other countries. Now several decades later we no longer think that the banks' skimming on most of retail transactions is anything but normal.
As for Australia, IIRC EFTPOS is free for merchants. That and debit being used way more than credit is why surcharging for credit is more common there.
Sep 27, 2020 | 11:51 pm
#764
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Yeah, CC surcharges are actually allowed in the US now thanks to a recent SCOTUS decision and previous settlements with merchants. Of course, other than at gas stations, they still aren't really considered "normal".
As for Australia, IIRC EFTPOS is free for merchants. That and debit being used way more than credit is why surcharging for credit is more common there.
As for Australia, IIRC EFTPOS is free for merchants. That and debit being used way more than credit is why surcharging for credit is more common there.
Sep 28, 2020 | 1:27 am
#765
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
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Posts: 22,159
Card associations will generally include no-surcharging T&C in their merchant agreements by default (e.g. HK is a by default jurisdiction) unless there is a statutory or regulatory override. Canada and Australia have the override, among others.