Option to disable GBP transactions to block dynamic currency conversion


#202

@CaptAm That’s easy to say, but when the merchant disingenuously carries out DCC without the card holder’s consent, it can take a long time to reverse. In one case, we wasted half an hour after paying at a Spanish restaurant because of this. The objective in this thread is to cut off the problem at source, not to identify retrospective remedies.


#203

@NFH totally agree!
It would much easier for Spanish people do not have to dealt with that


#204

Basically what we need to do - create separate topic where ppl which speaks in various languages coming together and write in their native language: “I demand to be charged in local currency ! No DCC allowed!” Then, when we go to that country, we need to print this (as BOLD BIG TEXT) beforehand and present to cashiers/sales persons before purchase is made. I hope then they will be out of options to apply their little scam known as DCC.


#205

@NFH, l agree to lost of your ideas. Just a reminder that this topic is more than one year old and no signs that Revolut cares about it. If they get tons of DCC complains - maybe they decide to do something. So my proposal is to try to avoid DCC, but if this scam happens - complain, according to MC/Visa rules to show the problem.


#206

I read above that Revolut will start issuing cards with an IIN/BIN from a Eurozone country, which would solve the problem at least in the Eurozone, but not in Poland where others have reported DCC scams.


#207

Do anyone know how to request one of those eu cards?


#208

The current cards with UK IIN/BINs are EU cards. The UK hasn’t left the EU. If you want a Eurozone-issued card, then you might just need to request a new physical card and pay the fee.


#209

It doesn’t mean It will be euro-based card by default. It’ll still be gbp. Won’t it?


#210

Your default currency (e.g. GBP) is not based on the IIN/BIN of the card. I believe it’s based the country in which you were resident when you opened your Revolut account. But the default currency is nothing to do with dynamic currency conversion. DCC is based only on the IIN/BIN.


#211

This is not weird at all. Many merchants in Spain simply make the selection on behalf of the account holder… And not only in Spain.


#212

This is true… one has to be quite firm (almost bordering upon obnoxious / rude) in explaining that you want the transaction in xxxx currency


#213

There is an article in the Independent yesterday by Simon Calder, the UK’s top travel journalist, about dynamic currency conversion. Some notable quotes:

But anecdotal evidence indicates that some traders are failing to offer a choice, and instead presenting the bill with sterling pre-selected on the credit card terminal.

A German consumer group, Stiftung Warentest, found DCC charges at ATMs between 2.6 and 12 per cent – with the highest rates in the Czech Republic, Poland and Hungary.

The European Union is proposing to regulate DCC, saying: “Payment service providers will have to disclose the full costs charged to consumers.”

He goes on to comment that British travellers might not benefit from such EU regulation because of Brexit, but I think he might be wrong, because the EU might regulate DCC at all EEA points of sale, irrespective of the country of issue of the card.


#214

0.99? Thats almost generous ;), a few months ago there was a customer who received a rate of 0.89 at a Moneycorp ATM at Stansted


#215

Would be great if the scourge of DCC was tackled in Europe by making it more transparent and giving real choice to consumers.

The challenge then would be how to tackle it further afield, where it’s still rampant and prevalent. I was in India a few months ago and the DCC scam is practised widely there. No choice given and the merchants feign ignorance or indifference.

Pressure needs to be brought to bear on the main players, mainly Visa and MasterCard, who are major players in regulating this practice.


#216

There is already a choice. DCC is opt-in, the problem is merchants often make that decision on behalf of the customer, respectively the DCC prompt appears after the PIN was entered (PIN-less transactions are a different story of course).

The best solution IMHO would be to abandon DCC, there are no tangible advantages for the customers. As this is unlikely to happen, the second best solution would be to require DCC to prompt you before the PIN is entered, have the final currency, converted amount, and exchange rate prominently displayed, and always require a PIN for transactions where DCC is applied.


#217

That’s why I said real choice.

That was my argument to MasterCard, when I contacted them about being scammed by DCC. Their reply was pure sophistry and obfuscation, leaving the waters muddier then ever.

I had posted the reply I received from Mastercard somewhere else, possible earlier in this thread. I’ll look it up when I have more time.


#218

That could be a question of definion :wink:

Why am I not surprised


#219

The only way to ban DCC is to require the currency of the transaction to be agreed between the merchant and consumer before the payment card is presented, and to forbid merchants from changing the currency after the payment card is presented. This would allow bona fide variation of transaction currency, for example in border areas where a restaurant might have dual pricing in its menu, or an airline that correctly prices flights in the currency of the country where the first flight in a booking starts. The key point is to remove the ability of merchants to choose the transaction currency based on the IIN/BIN of the card.


#220

That would be still DCC, just in a slightly more transparent way. Banning DCC should not be that difficult by simply banning conversions altogether.

These are edge cases, but I would assume restaurants in border areas still have their base currency and if they charge you in another currency they will use a different terminal (different bank) with/for that other currency.

Agreed.


#221

No, it wouldn’t be dynamic currency conversion. It would be simply currency conversion, as it would be impossible to dynamically determine the transaction currency according to the country of issue of the payment card.

Why would merchants in border areas need to use a different card terminal per currency? Existing card terminals support multiple currencies. An example is Belarusian duty-free shops in border checkpoints. They charge your card in whichever currency you tell them (BYN, EUR or USD, I believe), despite their prices being advertised in EUR. They don’t take the IIN/BIN into account, because the currency is agreed before they even see your card.