Option to disable GBP transactions to block dynamic currency conversion


#121

I had same problem today (not with revolut card as due to upgrade of the revolut client I had to re set my SMS confirmation), but it is also a card in GBP… Without my permission the restaurant converted to GBP (with 3.5% fees from their bank). Then when I explained them it was too late… they should have asked but…
So yes good if a solution to this such as allowing to block GBP transactions. And possibility to allow, imagine you buy in the UK…!


#122

I did complain directly to MasterCard as I was fed up with the shitty practice of DCC. These are their replies to the 7 specific points I raised with them:

1 Why has MasterCard not banned the practice of allowing currency payment option AFTER PIN entry? This would, at a stroke, eliminate a large part of the abuse occurring.

· Your focused seems to be on the specific timing of when PIN is collected from the consumer. But the timing of when PIN is collected is not, in itself, any direct cause of merchant’s “corrupt working practices” as you refer to. This is because regardless of when PIN is collected by a merchant, DCC rules provide protection since the DCC offer must happen before a transaction authorization. So, DCC being offered before authorization is the real consumer protection, not questions of when/if/how a PIN is entered.

2 Why has MasterCard not taken the responsibility itself of putting right these transactions, instead of brushing off your responsibility to member banks, leaving customers a long and laborious process.

First of all, as previously mentioned, DCC is not a service that was put in place by Mastercard or any other payment scheme. We do regulate it as they are offered on our service.
Implying that we condone the bad practices of merchants would be like making the Road agency responsible for bad drivers creating road accident.
We have relationship with our banks, issuing and acquiring banks. Whenever a non-compliant merchant is found out, we notify the acquirers of that merchant and take the necessary actions; whoever, when it comes to the consumers, although we do protect their right by putting in place rules, ultimately the relationship resides with the bank that has issued the card. That bank has the right to issue a charge back, at your request, if you believe that you have been treated unfairly at a merchant (FYI, we have a well-documented process in place that your bank should be aware of).
· Mastercard has programs that address instances of noncompliance with particular rules. Every instance of noncompliance with our rules, we have the authority to impose monetary noncompliance assessments.

3 Do you actively monitor compliance with your own DCC code, with both overt and covert surveillance practices? Or are you purely reactive and passive on this whole affair?

Our compliance programme proactively audit acquirers and their merchants (ATM, shops, eMerchants) and react upon receiving claims like yours.

4 Has MasterCard done an audit of what the DCC cost to consumers is overall, compared to if they had gone down their own currency route? Has this been published?

We have, however anti-competition rules preclude us from publishing results.

5 What is your success rate at dealing with DCC complaints? Have you any evidence that banks and retailers change behaviour when approached by yourselves, or does shoddy behaviour reassert itself shortly after?

The number of nom-compliance cases have clearly reduced in certain countries but you will agree that you cannot avoid the occasional non-compliant merchants that either do lack training or focus, wrongly, on the revenue, and therefore “force” DCC on the consumer.

6 What follow up do you provide?

Once the merchant’s bank confirm that non-compliance has been rectified, we send auditors to ensure that the merchant has been correctly trained not to force DCC

7 All my anecdotal evidence is that corrupt working practices continue apace irrespective of any action (or inaction) on your part.

FYI, Mastercard follows the Rules and Regulations put in place by countries and in Europe, the European commission is looking into DCC and the practice of some merchants. (http://europa.eu/rapid/press-release_MEMO-17-670_en.htm )

Regards,

POI Currency Conversion Team
Customer Performance Integrity
MasterCard | Law & Franchise Integrity
mailto:POI_Currency_Conversion@mastercard.com


#123

Doppjunat, this is all marketing bullshit. Mastercard does not give any shit and especially with big companies as Airbnb or Spotify. Both “force” DCC on the consumer and Mastercard does absolutely nothing both on consumer level (chargebacks declined) or globally. “MasterCard chargeback Reason Code 4846: I was not given the opportunity to choose the desired currency in which the transactions was completed and did not agree to the currency of the transaction”. This is a mystery why they have this reason code at all.


#124

Yes, I quite agree. I was very disappointed with the reply from MasterCard. They seemed to want to justify their position.

Their compliance policy seems to be there for cosmetic purposes. More honoured in the breach than in the observance. Their reasoning behind not insisting on a DCC choice BEFORE PIN input is pure sophistry on their part.

I hope the EU come down hard on this practice. And in the meantime Revolut can lead the way by implementing the fixes suggested in this thread to make DCC a thing of the past for Revolut users.


#125

I’ve just read all this. Completely agree with all the ideas and suggestions put forward on how to stop it.

Bump :top:


#127

Hi BruNo,

I have had similar experiences in Poland. The first issue is that some of the card terminals only ask about currency conversion after you have already inserted your PIN so you need to be aware to this and hold on to the card terminal to cancel the currency conversion after you enter your PIN.

Yesterday I had an experience when even this didn’t work because it seemed to automatically choose currency conversion, the option to choose came up for about two seconds but then went ahead without me doing anything before I had a chance to choose the cancel option.

Today it again converted automatically although this time it was using a different type of card machine where it did it before I put my PIN in so at least I was able to reject it. The waitress then tried again to try and get it to charge me in PLN instead of GBP but was unable so I gave up and used another card (in PLN).

I am going to give up on using Revolut in Poland for now. I used it extensively in USA and NZ earlier in the year and didn’t have this problem once.


#128

@AndreasK - You were looking into this last October. Six months later, please can you update us?


#129

That was the main reason why I was waiting for Vaults (or any other thing that would provide a saving account functionality). So now I just move all the money with currencies that I don’t want to spend into vaults, and now I’m properly protected against DCC :slight_smile:


#130

That’s right. Vaults is a good workaround for this.


#131

Hmmm, can you elaborate this?
IMHO Vault has nothing to do with DCC…


#132

Right now, every wallet can be deactivated to prevent funds taken out if it. Except for one’s base currency.

The idea is that you can “park” all available GBP funds in a vault. This also prevents card transactions.

Example: you’re in Spain and you converted some GBP into EUR. If you’ve put all your GBP (your base currency) into a vault temporarily, a DCC GBP payment will be declined: DCC prevented.


#133

@redi, follow the simple logic:

1 - You want to spend money only from USD account;
2 - Move all the money from other accounts to vaults (saving accounts);
3 - There is no money on any account except USD one - there is no any other source for DCC to grab your money from.


#134

Wouldn’t Revolut then just convert GBP back to EUR and charge that account? Similar as if you would pay something in GB billed in GBP but have no/not enough founds in GBP but enough in EUR.
Because Revolut always charges from the currrncy account in that order:

  1. Currency that was billed
  2. Your home currency
  3. Any currency with enough founds in account

#135

Hmmmm,
let’s imagine it in that way:

  • merchant checked that your card is in GBP
  • DCC converts USD into GBP
  • Revolut got info about payment in GBP
  • You don’t have money in your GBP wallet (money is in Vault)
  • Revolut converts GBP (info from merchant) into USD (the only available account with money on it)
    Seems to be converted twice…
    I really don’t think Vault is the answer for that…

#136

How does Vault prevent an unwanted currency conversion? This seems like a red herring.


#137

If I am in the country that has GBP as the main currency, then I would obviously have money only on GBP account, and move money from any other accounts into vaults.


#138

True, my fault. But it offers an option to block funds held on one’s base currency. Doesn’t prevent DCC, but solves a different thing people have asked for.


#139

It really doesn’t work like this.
The behavior will be exactly as I’ve described above:


#140

Oh damn, I didn’t think about it. Then of course vaults won’t help.

Fortunately, so far I didn’t experience such scenarios as I always check in what currency I’m charged on the terminal, and if it’s not the currency of the country then I ask to change to it.


#141

@artemsyd - How does your approach prevent a merchant from disingenuously changing the currency to GBP after you have authorised the transaction in local currency? When I experienced this, it took half an hour for the merchant to reverse it.