DCC - an idea to avoid scam

#1

Hello community,
I was thinking a way to be sure that you know what is going with the payment even in countries where you don’t understand the language (i.e. China)

If I disable all the payment methods and I try to pay in a shop/restaurant, the transaction should be rejected and I should receive the proof of the declined payment (plus you should see it also in Revolut app).

There I should see if someone tried to charge in a different currency (i.e. GBP)

If this works (I don’t know I have never tried), it could helps to avoid scam.

What do you think?
Of course if Revolut comes up with a proper solution for this problem it would be much better!

Cheers
E,

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#2

@Emanuele, I’ve already suggested a more workable solution here:

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#3

I see, but my idea was to find a way to avoid/spot this kind of scam till when a solution is implemented by Revolut.

Another possible option that Revolut could implement is a prepayment approval option: before the transaction happens, you receive a notification in the app so that you ca see if there is any problem (for example if you are in USA but the transaction is in GBP, you can immediately spot the DCC). And after you approve the transaction, the shop revives the payment.

I really hope Revolut finds a good solution for this problem.

Cheers
E.

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#4

There is another way how to avoid DCC and it should be quite simple for Revolut to implement.

All it would take is just implementing an “Automatic conversion” switch in the app.
Banning DCC would require just turning “Automatic conversion” off and deactivating/emptying all accounts except the account of the country you are currently located in.

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#5

@dsmid, yes, this was also discussed in the thread that I quoted above. You would specify the transaction currency that you wanted to allow, and then any transactions in any other currency would be declined. However, this is slightly more complex to implement than a simple switch to disable GBP transactions. I was suggesting a quick-win solution, which unfortunately Revolut hasn’t implemented quickly.

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#6

Virtually emptying all account except for one main account wouldn’t help here.

For example, a colleague of mine recently withdrawn AUD from an ATM in Australia. He only had AUD in his Revolut account. Because he wasn’t watching the ATM message carefully enough (he said it didn’t show any message but I don’t really believe that), the ATM did a DCC conversion to GBP which the ATM determined as the main currency for the Revolut card. Since there was no GBP in the Revoult Account, Revolut just converted the GBP request to the account with the highest balance which was AUD again in his case. He did withdraw 2000 AUD and got deducted about 2200 AUD from his account. (the 2% Revolut fee included).

So it would only work if it would at the same time also disable the automatic conversion within Revolut itself.

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#8

Not sure if disabling dcc is possible for Revolut. But this function would save a lot of pain.

One other feature they could add is blocking your home currency account. For example, my home currency is GBP and I am travelling in Australia and I have GBP 100 and AUD 2000 on the account. If I then go to an ATM in New Zealand snd withdraw NZD 50, I would like to take the money from the AUD account but Revolut will take it from my home currency GBP. You can only avoid that by getting rid of your home currency when travelling.

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#9

Emptying a wallet in a specific currency or blocking the account does not prevent DCC. It makes it worse :grinning: :wink: :upside_down_face:

  • You delete / empty / deactivate GBP
  • You travel to Australia
  • You shop for 500 AUD
  • Merchant applies DCC (AUD to GBP)
  • GBP hit your Revolut account
  • GBP wallet is empty, Revolut app applies conversion to AUD (after all, this is Revolut’s core feature)

Now you’ve got two conversions. Revolut on top of DCC.

Revolut would have to implement a way to not authorize a payment at all in a certain currency (the user‘s base currency / supposed currency of the card).

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#10

MasterCard will disallow DCC on Prepaid multicurrency travel cards from Friday this week. Would this be relevant to Revolut? I sure hope so:

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#11

"Dynamic currency conversion will no longer be offered for prepaid multicurrency Mastercard cards, as these cardholders have predetermined the currency they wish to pay in, before they travel and any purchases are made.“

It’s an interesting argument and I can see how they can get around past anti competition rulings that would not allow them to block DCC.

It’s ambiguous if the Revolt card would fall into this category. The moneysavingsexpert article mentions WeSwap. Similar to Revolut, users can exchange currencies in app and lock in a given rate. But when they don’t do that and let the card exchange the money on the fly when making a purchase, not WeSwap‘s rates are used but Mastercard‘s rates + a 2% markup.

While I certainly hope that Revolut is affected by this, I can see arguments for and against it, based on MasterCard’s official statements.

@AndreasK was mentioning upcoming policy changes regarding DCC, so I hope this is what he was referring to.

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