[Idyllchat] Credit Card Charging Method

[Bob Bestor]

What's happening in these cases is a nifty little 
scam called Dynamic Currency Conversion (DCC). 
Clever entrepreneurs have picked up on the fact 
that people traveling outside their own country 
might like to know precisely what they will be 
charged in their own currency, rather than 
waiting until they get home and their credit card 
bill arrives. The 3-5% charge, which I understand 
is in addition to any credit card foreign 
transaction charge, is divided between the 
merchant and the 3rd party company that sold DCC 
to the merchant. Besides that, we're getting 
reports (which Joan's duty free experience backs 
up) that the exchange rate with DCC is often not 
competitive with your ATM or bank credit card.

We recommend to our customers that they never 
accept a bill presented in anything other than 
local currency. Apparently some merchants are 
saying if you have a U.S. credit card they must 
charge in U.S. dollars, but that is absolutely 
false. You have the right to pay in local 
currency. Offering this utterly worthless service 
is simply a ruse to get more money from tourists. 
You wind up paying more for goods and services 
than do locals.

Bob


>Some of you may have experienced this before, 
>but for the first time we observed a new 
>“machine” in various CH shopping locations, 
>located at the cash register as you use your 
>charge card.  The first was in Luzern.  When you 
>charge (MC, Visa, etc.) the machine shows the 
>total in both US$ and CHF.  It is your choice in 
>which currency to pay.  However, in our case 
>(twice), each shopkeeper said the best rate 
>would be in US$. 
>
>
>
>We decided to experiment.  The first charge we 
>selected US$.  The second charge we selected 
>CHF.  Final accounting shows we paid 3 cents 
>more per dollar by selecting US$.  This is the 
>first time we have seen this system in CH (or 
>elsewhere in Europe).  Obviously someone 
>benefits—in our case certainly not the customer 
>(choosing home currency),   
>
>
>
>Thereafter we reverted to our established method--cash only, using ATM’s. 
>
>
>
>One other observation.  The 2nd experimental 
>charge was at the Zurich airport at the Duty 
>Free Shop (inside the security zone) for 
>cosmetics.  On a $219. charge (in CHF), I saved 
>$50.00. Not as much as the old days, but nice. 
>Mind you, the cosmetics do little but make me 
>feel good!   
>
>
>
>Perhaps others have experienced this new wrinkle (no pun intended)?  Joan.
>


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