Beware paying by credit card in dollars abroad

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Dynamic currency conversion is a scam that banks and some third party operators have been using the past few years. You are in a foreign country and asked if you want your credit card transaction in your home currency. What they don't tell you is that they give you a really horrific exchange rate, and it does not keep you from paying your own bank's foreign transaction fee. Always have credit card transactions posted in the local currency of the country you are visiting to avoid this rip off.

Your home bank with make the conversion at interbank mid-market rates, which is a very good exchange rate ONLY if it comes in to them in a foreign currency. If it comes to them in dollars, then whoever converted it earlier has almost certainly given you a very bad rate.

Here is an article warning British holidaymakers of this practice:

http://www.dailymail.co.uk/news/arti...lion-year.html

[Tommyboy Senior Member Find all posts View Profile Close Tommyboy]

Last year, on our trip to Italy, we charged quite a few things but always used the Euro price and it all worked out well. Of course, the euro value went down soon after we returned and the deal would have been much better later but it was a great trip. We did exchange some dollars at a change booth near the train station in Milan and the rate was awful. We needed the cash at the time and the banks would not even let us inside since we did not have an account there. I could not find an ATM to use at the time, so plan ahead when traveling.

Tom

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Thanks for the reminder and the link to the article.

[chriskre Super Moderator Find all posts View Profile Close chriskre]

Wow. I was wondering why at Corte Ingles in Spain they asked you if I wanted it in dollars.
I would have thought this type of transaction at the register would be illegal but obviously not.

I wonder if foreigners get scammed like this here in the USA too?
I've never seen any of my relatives charged in their own currency here yet, but wonder if some merchants are doing it.

[bellesgirl Senior Member Find all posts View Profile Close bellesgirl]

I have had two situations in the UK where they automatically rang up the transaction in US$$ without asking. When I asked them to void it and recharge it, one, a restaurant, said they could not. Another, a hotel, did but it still cost us extra $$. Now, if it is a large amount - like a hotel, I tell them ahead of time to do it in local currency. For restaurants I typically use cash (that I take out of the ATM) to avoid any hassle.

[stan2u Member Find all posts View Profile Close stan2u]

weird new stuff -- life really is just one damn thing after another

[FamilyTraveler Junior Member Find all posts View Profile Close FamilyTraveler]

I had this option in Spain and accepted. Seemed like a good idea at the time. I'm annoyed that the bank fees are still there and the robbery exchange rate. First and last time that I do this.

Thanks for posting though. It's definitely a good thing for travelers to know.