Dynamic Currency Conversion (DCC)
#556
Moderator: Budget Travel forum & Credit Card Programs, FlyerTalk Evangelist
Join Date: Aug 2002
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#557
Original Poster
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,059
I told him that I'd dispute the transaction with VISA (Chase) and the restaurant would likely receive $0. (Not sure whether or not that is accurate.)
I suggested that we use xe.com and he pay me the difference in Euros - cash - and I wouldn't dispute the charge. He agreed and all is good. But the difference was significant. That adds up when you do that to all of your customers.
#558
Join Date: Jun 2008
Posts: 2,203
Do you care to name and shame the restaurant?
This isn't completely accurate. In a full Reason Code 76 chargeback Chase would send the transaction back to the acquirer for the restaurant, and the transaction would be reprocessed in euros. Typically the acquirer will penalize the merchant for a chargeback. It's a fantastic headache for the merchant, and I relish any opportunity to do this for those in on the DCC scam.
I would have stood my ground and demanded that the restaurant void the transaction. Your chosen path unfortunately allows the restaurant to get away with this without penalty. You can still file a chargeback when you get home. I seriously hope you didn't tip...
This isn't completely accurate. In a full Reason Code 76 chargeback Chase would send the transaction back to the acquirer for the restaurant, and the transaction would be reprocessed in euros. Typically the acquirer will penalize the merchant for a chargeback. It's a fantastic headache for the merchant, and I relish any opportunity to do this for those in on the DCC scam.
I would have stood my ground and demanded that the restaurant void the transaction. Your chosen path unfortunately allows the restaurant to get away with this without penalty. You can still file a chargeback when you get home. I seriously hope you didn't tip...
#559
Original Poster
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,059
I am traveling, and packed up my receipts. I'll shame when I write my Trip Advisor review. Thanks for the clarification for the Code 76 procedure. I concur with the last statement in that a forced void would have been ideal, but a bit more time consuming for me as I was already pressed for time. And, no, I absolutely did not tip, and would have if this had not occurred.
After you get home, if you have the receipt, you can contact Chase about a chargeback for DCC stating that the merchant did not offer the opportunity to void the transaction and rerun without DCC.
#560
Join Date: May 2017
Posts: 2,016
This isn't completely accurate. In a full Reason Code 76 chargeback Chase would send the transaction back to the acquirer for the restaurant, and the transaction would be reprocessed in euros. Typically the acquirer will penalize the merchant for a chargeback. It's a fantastic headache for the merchant, and I relish any opportunity to do this for those in on the DCC scam.
The merchant also has to pay a fee of possibly a few tens of euros to the bank for processing the chargeback, so settling for the xe.com exchange rate and refunding in cash was probably a lot cheaper for the restaurant than using the chargeback process.
#561
Original Poster
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,059
To be reprocessed in EUR, I think that the restaurant needs to submit evidence that the customer has agreed to the EUR amount. Some merchants may be unaware of how the process works or that the merchant needs to do something and if they do not act, the customer probably gets everything back.
The merchant also has to pay a fee of possibly a few tens of euros to the bank for processing the chargeback, so settling for the xe.com exchange rate and refunding in cash was probably a lot cheaper for the restaurant than using the chargeback process.
The merchant also has to pay a fee of possibly a few tens of euros to the bank for processing the chargeback, so settling for the xe.com exchange rate and refunding in cash was probably a lot cheaper for the restaurant than using the chargeback process.
#562
FlyerTalk Evangelist
Join Date: Jan 2014
Location: San Diego, CA
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#563
Original Poster
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,059
I imagine the payment networks would prefer the route of using the reason codes rather than some backroom deal. The Reason Code 76 chargeback is simply using the sanctioned way to ensure that currency choice is enforced. The fact that the merchant acquiesced so quickly leads me to believe the restaurant knows exactly what's happening.
#564
Join Date: May 2017
Posts: 2,016
- Request a chargeback.
- Sue the merchant in the merchant's jurisdiction. Pay attention to who's paying the legal costs as those could be substantial.
- Settle for compensation out of court.
#565
Join Date: Nov 2014
Location: NYC
Posts: 556
I was offered DCC at a tourist-heavy knife shop in Japan this week, but the offer was made on the payment screen and the clerk said "you want to be charged in yen, right?" as soon as the interface showed up. A quick nod and she touched the Japanese flag and the receipt generated in JPY and the charge posted in JPY.
It displayed a Japanese flag and a US flag and the prices in each. The DCC markup was about 3% over the Visa rate for the day.
I had rarely encountered DCC in Japan, and I guess still have, but had gone for several weeks without seeing it at all until this knife shop.
It displayed a Japanese flag and a US flag and the prices in each. The DCC markup was about 3% over the Visa rate for the day.
I had rarely encountered DCC in Japan, and I guess still have, but had gone for several weeks without seeing it at all until this knife shop.
#566
Ambassador, Hong Kong and Macau
Join Date: May 2009
Location: HKG
Programs: Non-top tier Asia Miles member
Posts: 19,799
I was offered DCC at a tourist-heavy knife shop in Japan this week, but the offer was made on the payment screen and the clerk said "you want to be charged in yen, right?" as soon as the interface showed up. A quick nod and she touched the Japanese flag and the receipt generated in JPY and the charge posted in JPY.
It displayed a Japanese flag and a US flag and the prices in each. The DCC markup was about 3% over the Visa rate for the day.
I had rarely encountered DCC in Japan, and I guess still have, but had gone for several weeks without seeing it at all until this knife shop.
It displayed a Japanese flag and a US flag and the prices in each. The DCC markup was about 3% over the Visa rate for the day.
I had rarely encountered DCC in Japan, and I guess still have, but had gone for several weeks without seeing it at all until this knife shop.
#567
Join Date: Jun 2008
Posts: 2,203
Do you care to name and shame the restaurant?
This isn't completely accurate. In a full Reason Code 76 chargeback Chase would send the transaction back to the acquirer for the restaurant, and the transaction would be reprocessed in euros. Typically the acquirer will penalize the merchant for a chargeback. It's a fantastic headache for the merchant, and I relish any opportunity to do this for those in on the DCC scam.
I would have stood my ground and demanded that the restaurant void the transaction. Your chosen path unfortunately allows the restaurant to get away with this without penalty. You can still file a chargeback when you get home. I seriously hope you didn't tip...
This isn't completely accurate. In a full Reason Code 76 chargeback Chase would send the transaction back to the acquirer for the restaurant, and the transaction would be reprocessed in euros. Typically the acquirer will penalize the merchant for a chargeback. It's a fantastic headache for the merchant, and I relish any opportunity to do this for those in on the DCC scam.
I would have stood my ground and demanded that the restaurant void the transaction. Your chosen path unfortunately allows the restaurant to get away with this without penalty. You can still file a chargeback when you get home. I seriously hope you didn't tip...
#568
Join Date: Feb 2001
Programs: IHG Diamond, HH Diamond, BW Diamond Select, Accor Silver, Marriott Gold
Posts: 4,228
In a full Reason Code 76 chargeback Chase would send the transaction back to the acquirer for the restaurant, and the transaction would be reprocessed in euros. Typically the acquirer will penalize the merchant for a chargeback. It's a fantastic headache for the merchant, and I relish any opportunity to do this for those in on the DCC scam.
#569
Original Poster
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,059
For small amounts, US issuers are just as likely to eat the cost. It's similar to fraudulent charges where they're unlikely to pursue a merchant chargeback for small amounts. There have been a few reports of successful Reason Code 76 chargebacks with Chase, however. I don't know what the threshold would be.
#570
Join Date: Jun 2008
Posts: 2,203
Uh oh...back again. Had a change in travel plans and booked a ticket on MH (MH metal using MH website), paid with my Chase CSR. Given a choice - USD or MYR. I chose MYR. I now see my charge is $279 vs. $262 as quoted. I have a clear receipt stating $262 USD. Is this disputable?