Dynamic Currency Conversion (DCC)

AndyRates on 06/01/2020 - 13:08
Last edited 06/01/2020 - 13:51

Hi all,

What is the best way to avoid overseas (foreign) merchants in-store from charging this hidden fee on your purchases? I worked it out to be 3% to 7% more than the actual cost converted by xe.com or Google exchange rate.

Usually I let MasterCard or Visa to do the exchange rate. For example in Singapore most merchants don't offer DCC option.

Should you dispute it after it has been done via the credit card company or you should make the merchant do it right the first time (charge local currency). If making the merchant correct it, voiding transactions and redoing them correctly pose a serious risk to duplicate transactions?

Thanks

Financial Currency Exchange

Comments

  • GG57 on 06/01/2020 - 13:28

    For clarity, are you asking about an online purchase or an in-store purchase (overseas).
    A lot easier to prevent if in-store, obviously.

    • GG57 on 06/01/2020 - 13:49

      So, no-one else has responded to this post in the 40 minutes since it was created; I ask for a clarification and get a neg-vote.
      It is a strange world we are in.

      • AndyRates on 06/01/2020 - 13:57
        +1

        I didnt neg you btw.

    • AndyRates on 06/01/2020 - 13:57

      in-store, so I have circled the local currency on the eft slip not AUD and on the credit card statement it still shows the rip off exchange rate

      • GG57 on 06/01/2020 - 14:01

        If you have a copy of the transaction showing EURxxx (or whatever) as the amount, you should be able to contest it in my view.

        In my experience, the merchant has asked which currency I would prefer (before it is processed).

        If you ask the merchant to reverse and re-process, get a copy of the reversal and keep for reconciliation / dispute later.

      • redforever on 06/01/2020 - 17:12

        so you sure it is not the overseas transaction fees shown on the credit bill?
        Do they still show the exchange rate of you opted for DCC?

        • AndyRates on 06/01/2020 - 19:17

          I am using 28 degrees, its just the inflated uncompetitive exchange rate imposed by the merchant at point of sale.

  • render on 06/01/2020 - 16:29
    +1

    DCC has always been a headache for me when travelling.

    Always save your receipts and try select the currency yourself on the POS where possible.

    In my experience most merchants have no clue how to fix it.

    Australian Banks tend to be nightmares to deal with.
    I got told by at least 10 different reps across multiple banks that DCC wasn’t a valid reason for a dispute.
    Had to Google and find all the relevant VISA / MC documentation and kept getting it escalated multiple times before a senior manager fixed it for me.

    • AndyRates on 06/01/2020 - 16:30

      I concur, so frustrating to deal with the aussie banks!

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