Automatic currency conversion by PH Paris
 

While filing credit card receipts from my final 2004 trip to Paris, I noticed that PH Paris actually converted the total hotel bill (in Euros) to USD, thus by-passing the currency conversion by MasterCard. This really irked me as I was never verbally told (not sure if it's printed in the CC slip that I signed, if there was any), and the conversion rate is much worse (2.5% higher) than Master Card's conversion rate for other transactions in Euro posted on the same date. I feel like PH Paris had pulled a fast one on me. :mad: Has anyone experienced this?

This is my second experience in having vendors attempt to convert foreign currency purchases into my Visa or MC's local currency. The only other place where this happened to me was at Harrod's in London. The cashiers there always asked (I believe notifying the customer is required) if I wanted my credit card to be billed in my local currency (USD), and I always refused this since vendors who are doing this seem to always have worse currency conversion rates than Visa or MC (even with the fee that Visa or MC tacked on).

Currency Exchange
 

This is an area where hotels actually make money from. Usually hotels will advise you that "we can charge you in US Dollars" so that most guests would want that, as it "eliminates" exchange rate.

In reality, the hotels use their exchange rate so that guests end up paying more. The classic example is in Asia......where rates at most properties are quoted in US Dollars. However, when you check out, the USD rates are converted into "local currency" at the hotel's prevailing exchange rate, so the guests end up paying a little more. AND, ON TOP OF THAT, now most of these properties can charge guests in US Dollars by using an automatic exchange on the credit card machine, so guests (if they chose to be "charged in USD") get charged twice as much exchange.....since the rate went from:

USD >> to >> "Local Currency" (losing exchange, paying more), then
"Local Currency" >> to >> "USD (auto exchange on credit card machine)", thereby losing another exchange.

That's the reason why sometimes a $89 USD rate quoted at the Hyatt Bali ended up being $130 on the CC bill after you return........

Many uneducated guests chose to be charged in "USD" for the convenience, but they didn't realize that they actually got charged twice the currency exchange. Next time, INSIST on being charged the local currency. OR, some hotels guarantee the USD quoted rate if you pay by cash or travelers checks...... I noticed this disclaimer on a recent SPG property website.....

Hint: watch for how many points you are credited or not credited in situations such as this.

The desk clerk informed me that they were charging me in dollars at my last stay at the PH Paris "as a service." I asked for the exchange rate and it was something like 4-5% worse than the interbank rate. So I told them not to do me that service and they switched it back to a Euro charge. It was annoying to have this done as the default but at least I was able to change it. This was the one fly in the ointment of an otherwise excellent stay at the Park Hyatt Vendome.