Forex loss on credit card refunds

Old Aug 12, 20, 12:11 pm
Original Poster
Join Date: Mar 2005
Location: ZRH, Switzerland
Programs: M&M, Fan of MO, Shangri-La.
Posts: 618
Forex loss on credit card refunds

My experience with refunds via Cornercard / Mastercard is that they apply the daily „mystery“ exchange rate of the refund date plus they add again the 1.2% forex fee on top.
Not too surprising.
I‘ll probably just have to forget about it, even though the fx rate drop plus twice the credit card fees adds up to a loss of about 15% in my case. (SIngapore Dollars and Indonesian Rupiah vs CHF).

I wouldn‘t bother too much if I would not seem to remember that I had a case many years ago where I got the full amount in CHF back which I had paid. It was a gain for me vs the new FX rate, so I was pleasantly surprised. It seems that it was processed just like a reversal of the original charge and not like a new transaction.
It‘s so long ago that I cannot find the details anymore,

Was I just dreaming or is there still a way that credit cards can reverse the original charge and not process a refund with new rates?
LoungeLizzard is offline  
Old Aug 12, 20, 1:13 pm
Join Date: Aug 2000
Location: ZRH / YUL
Programs: UA, TK , Starwood > Marriott
Posts: 7,025
If your original charge was in a currency other than CHF, then your refund will be processed in that same currency. If the exchange rate between date of purchase and date of refund has changed, that is entirely your loss or gain. Your credit card issuer doesn't get the original CHF amount back from the merchant, so they won't pay out the original CHF amount to you.

You may want to talk to your issuer about seeing if they are willing to waive the 1.2% forex fee on the refund as a courtesy.
airoli is offline  
Old Aug 12, 20, 1:23 pm
Join Date: May 2009
Posts: 9,074
They absolutely can reverse the original charge, I've had it done a few times (Oman Air sale Ex-MUC which they considered an EF and cancelled, as an example) with both Corner as well as AECS. They're .....y about it, since it means no free lunch for them, but it can be done. But the airline usually has little influence here when the charge has been done many months ago.
YuropFlyer is offline  
Old Aug 12, 20, 3:20 pm
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,269
The carrier has no influence and OP's card issuing bank will only do this as a customer service courtesy for customers it wishes to favor. The merchant acquirer itself has no incentive to waive anything.

It's just small-time currency arbitrage. If the rate goes up, you pocket the profit on the transaction.
Often1 is offline  
Old Aug 12, 20, 4:32 pm
Join Date: Oct 2002
Location: Here there everywhere
Programs: Bonvoy Lifetime Titanium, Hilton Diamond, IHG Plat, BA Silver, Aegean Gold, Aeroplan 25k
Posts: 2,749
Call them, I’ve had success the few times I bothered calling and asking. Each time I was told it was a one-off thing.
florens likes this.
GVA is offline  

Thread Tools
Search this Thread