Morocco end up using my EUR account and not my MAD


#1

Was recently in Morocco and before the travel I exchanged part of my euros to Moroccan Dirham (MAD).
All the withdrawals from ATM went great getting the money from my MAD pocket. All other payments I made using the terminals were charged in USD that where exchanged from my EUR pocket.

I tried to resolve this with in app support, but I never got to fully understand why it was exchanging my euros to MAD, while I still had plenty of MADs in my account.

Only when my EUR pocket was empty did the app started to charge from my MAD pocket exchanging from USD to MAD. And only after the transaction was marked as completed did the USD disappear only to leave MAD.

By the end of the trip, I ended up with a lot of MAD, that I was unable to spend, and spending my entire EUR pocket at an exchange rate that was not as good as the one I had locked when I first exchanged part of my EUR pocket to MAD.
Here’s how the transactions looked the one in dollars was still pending.


Travelling to Morocco next week
#2

#3

Hi! Thanks for the reply.

But that was not the case. All the transactions where made in MAD. And as you can see from the screenshot, they eventually arrived in MAD at the application, but where charged from my EUR pocket, despite having plenty of money in my MAD pocket. Besides, the change of currency was not to GBP but to USD, which is in no way related to the card issuing country, and my USD pocket was empty.

Here’s one of the receipts.


#4

Yep that is seriously odd.


@AndreasK


#5

This malpractice is particularly prevalent in Spain, where merchants often disingenuously change the transaction currency and amount from EUR to GBP with a markups of up to 7% after the cardholder has entered their PIN. I have seen this happen several times and it has happened to friends to whom I have recommended Revolut. Unfortunately, the Spanish authorities, MasterCard and Visa do little to curtail the malpractice. On the other hand, American Express for example doesn’t allow it at all.

Oh come on. This is bullsh… I’m a happy Revolut user and merchant in Spain. Most banks offer the multi-currency feature in the POS as a free extra. The banks sell it to us merchants as “a great feature for your foreign clients, so they can be charged in their own currency”. Merchants don’t get compensated for it, and normally don’t know the consequences of offering this feature.
This markup is usually around 3%, and not 7% like you say. (I have never ever seen above 4% and I use my Revolut card daily!)
It’s not that the Spanish merchants are screwing with you on purpose. It’s a cultural thing where they normally take back the POS device after you put in your PIN. When the message appears to get the exchange, most merchants panic, because its in English and most Spaniards don’t understand English. So what do they do? They press the bright GREEN button quickly, thinking its what’s needed to get the payment processed. What they don’t know is that they exchanged it to GBP for you.

For this reason I have disabled the NFC chip on my Revolut card. Often times I would go to McDonalds Drivethru, hand out my Revolut card and before I knew it, I was already charged in GBP. By disabling NFC, you force them to insert the card, and give you the POS terminal to type in your PIN. You just keep the device in your hand till you see “ACEPTADO”.


#6

Oh come on, if mercants trick their customers due to language barrier - maybe they should be forced to know what service they are selling to their customers?

Knowingly or not, they are in fact by doing like you say frauding their customers on the behalf of the banks.

Pressing the green button to get the transaction completed without reading, that is just plain stupidity.


#7

There are always 2 sides to a story.
Merchants don’t intentionally screw over their clients. Cos why would they? They have nothing to win with it.

You say “pressing the green button without reading, is stupid”. The whole point is that almost always they CANT READ IT, because THEY DONT SPEAK ENGLISH! So what do they do? They just keep pressing GREEN till the payment comes through. What else can they do? Hold up a queue at McDonalds to call their bank at 1 am to figure out what it says?
I think its totally understandable (although undesirable) that they keep pressing green. We are talking people here that have no idea how a POS terminal works. Most only know how to charge people and thats it.

Moreover, (I looked this up), this gets categorized in Spain as unintentional fraud. You can ask for your money back (which they can do at the POS terminal instantly), and then ask them to get charged again correctly. If they do so, the fraud is void. If they don’t return the money, then you could sue them, etc…

Anyway… The only thing you can do is just told disable NFC and hold on to the device when you type in your PIN. It will take generations before merchants will get used to this new reality of fintech, NFC, etc…etc… I still see some merchants asking for an ID when paying with a PIN. I even got asked once when paying with a NFC bracelet… People just don’t know any better… but that doesn’t mean they are dishonest.


#8

You blame it on the languagebarrier, i say a merchant has an obligation to KNOW what they are selling and using - if they do not know what the effekts of pushing the green button is…

Then why the F… do they push it? They should tell the customer to finish it or be honest and say i “i have no clue as to what is happening so i just keep pressing”.

I’m amazed as to how anyone can view this as ok or even a normal behaviour???

Maybe the EU should put a threat of a fine on merchants for a couple hundred euros, i promise they will learn what the dialog means then…


#9

Just as if merchants didn’t know math and gave you the wrong change they’d be neglectfully screwing you over, not learning the easy 4-to-5-pages short reference manual that comes with the POS in full is neglectfully screwing you over.

Ignorance can’t be an excuse for this. You’re charging money through two ways. You better know them well.


#10

I had the same issue in the past (See: MAD transactions showing up as USD )

This is not an issue of merchant imposing a transaction in USD, but it looks like all POS in Morocco charge in USD when the transaction is made, and only when the transaction settles you’ll see a MAD transaction instead of USD.

I still didn’t use Revolut in Morocco after the introduction of MAD wallet, but I’m now disappointed to see that the MAD amount in the settlement date is not taken from the MAD wallet instead of EUR.

Looks like the only workaround when visiting Morocco is to disable all other wallets and only keep MAD wallet. This way the MAD transaction on settlement date will be taken from MAD wallet.

@accosta When transaction were settled using the MAD wallet, was it for the exact MAD transaction you made or it was posted as a different MAD amount due to the previous USD/MAD exchange?


#11

I don’t see why you guys are going crazy over this. Sure, you guys are right that this is undesirable, but my only point was that these people don’t do it out of dishonesty… they do it out of dumbness. (Plus that this dumbness is completely legal.)

Moreover, manuals also don’t explain anything about fx-fees. (1) (2)

We could go on and on about how you guys think you are right, but again, that won’t change anything really.
Like I said; it will take generations. We have barely started with SEPA, allowing Europeans to easily get foreign bank accounts. It will take many years before this fx-bank-fraud will become more apparent and the EU will do something about it. Just look at how long it took them to set interchange fees on debit/creditcards. 10 years can easily pass by between the moment thy start investigation the issue, and the moment the EU Regulations take effect.

@Anouar : I’m not sure how it works in Morocco, but in Spain the POS terminals ASK you if you want to pay in GBP. It’s not done automatically. The problem in Spain though is that normally you type in your PIN and then about 10 seconds pass by before you get a message asking you in which currency you want to pay. In that time, you have normally already given the POS terminal back, and merchants don’t expect to give it back to you a second time…


#12

@Renox: This is not a case of the terminal asking users to pay in another currency( A message will display in POS terminals in Morocco asking users to confirm when it’s case, saw it several times), but rather an issue across all Morocco POS terminals authorizing transactions in USD first before settling in MAD).

I wouldn’t worry too much if Revolut was using the interbank exchange rate for MAD transactions, but that’s not the case as Revolut has a very bad MAD exchange rate most times during the week , and even worse during the weekend ( See https://community.revolut.com/t/why-is-your-moroccan-dirham-mad-exchange-rate-is-so-bad/) . With the MAD wallet We’re now able to exchange to MAD when the exchange rate is good, but this is being the defeated by the issue posted by OP.


#13

My view on the matter is that if specific countries have this problem then the EU has to react as it steals big amounts of money from consumers.

Spain seems to be a country that is discussed over and over about this matter (a big part of it being that loads of people go to spain on holiday of course). The only quick solution would be if revolut made it possible to lock a certain currency for use.


#14

Please read my last message again. They do not charge in USD, only the authorization is made in USD, but the transaction settles in MAD which is the same amount of the initially made purchase in the POS.

This is also an issue from Revolut side, as they should have charged the MAD wallet at the settlement date since it’s posted as a MAD transaction.


#15

Yes, and i politely ask you to do the same -i was talking about within the EU (spain), for marocco the only way to get to it would be mastercard/visa networks i think?


#16

I think that DCC is a disgraceful practice and the sooner it is banned the better. For merchants/banks to label it as ‘customer convenience’ is plainly laughable. It is fraud, IMHO. It is on a par with PPI (Payment Protection Insurance), that other great fraud that affected mainly the UK, and has now in fact been banned. The UK banks have had to fork out BILLIONS in customer compensation for missold PPI. I feel there is soon going to be a similar stink with DCC.


#17

Surely this is excessive regulatory overreach on the European Commission’s part.

This can be resolved in the private sector, either by the issuer (e.g. :r: allowing users to block DCC with a toggle.), or by Mastercard (Forbidding merchants in its network from doing this, otherwise they’ll get kicked out of the network for non-compliance.).


#18

Exactly how is that going to happen do you think?

Mastercard and VISA makes a fortune out of it, the pos gets comission aswell i think?

The only way to make it stop for sure is by way of the law and then it has to be the entire EU to have any effect. Mean while if revolut can do something to help it’s customers by adding tech that will prevent DCC it would be very welcome!


#19

Yes, after the transactions where settled when the EUR wallet was empty they did charged me the correct amount in MAD. See these printscreens.

The problem was only when I had money on my EUR wallet and got charged from it.


#20

It’s not a solution (This is a strange problem and should be followed up on.), but what you can do is disable your EUR wallet whilst in Morocco. That way the debit card won’t draw on the EUR reserves.

Disabling your EUR currency account will not have any impact on the EUR inside the wallet. It’ll simply just be deactivated, and can be reactivated again.