Article: Why is Dynamic Currency Conversion Even Legal?

[apeman]

Seen this many a time one my travels, some places ask you first others just hit the Oz $ . Just noticed this when booking with Agoda "You chose a future price: payment by you in AUD will be due on Monday, 25 August 2025; On that date, a AUD amount will be calculated from USD 91.16 and charged to you, subject to these terms affecting your price." The Terms wording is "
Agoda will calculate an estimated price for your booking using the then-current Bloomberg Generic Composite Rate. However, after you select your Charge Currency, an additional amount of 5% of the price will be added (i) when Charge Currency is different from Display Currency, except when (A) you are paying with a US-issuer payment card whose default currency is USD; or (B) you are paying with a US-issuer payment card and booking from an IP address located in the US; or (ii) when Charge Currency is different from Product Currency, except when (A) you are making your booking from an IP address located in the United Kingdom; (B) you are paying with a US-issuer payment card whose default currency is USD; or (C) you are paying with a US-issuer payment card and booking from an IP address located in the United States). If the conditions for applying both sections (i) and (ii) are met, only the price increase described in section (ii) would be applied.
Because you have selected a “Pay Later” booking, you will not pay anything until the payment date shown on the booking form and on your booking confirmation. On the payment date, Agoda will calculate the final price for your booking in your selected Charge Currency using the then-current Bloomberg Generic Composite Rate plus up to additional amount of 5% of the price, where applicable.
Next time I book with them I will select the hotel country currency as I use a Comm Bank OS transaction free card.

 

[Restless]

I run a small business and we use Stripe. In the last year, Stripe proudly announced it had implemented 'Adaptive Pricing' for us. Their email:

[td]Hello,[/td] [td] [/td] [td] [/td]

[td] [/td] [td] [/td] [td]Adaptive Pricing is now enabled for your payment links.[/td] [td] [/td] [td] [/td]

[td] [/td] [td] [/td] [td]With Adaptive Pricing, your global buyers will have the added option to check out in their local currency with their preferred local payment methods, which can help increase revenue by up to 17%. Funds received in overseas currencies will automatically convert and settle in your primary currency in your Stripe balance. Learn more about how currency conversion works from our docs.[/td]

"Increase revenues up to 17%......."

I was pretty annoyed that this was introduced without my agreement. I had to actually Opt Out rather than Opt In.

Stripe is extremely popular. Looks like this ridiculous rort is here to stay

 

[rbjhan]

kpc, how do you find the BW World MC? I am looking at applying for one for our upcoming Europe trip. My other card is the Amex Explorer.

I have the Bankwest Plat Qantas card. It works very well overseas.
The earn rate on QFF is a bit cough though...

 

[kpc]

kpc, how do you find the BW World MC? I am looking at applying for one for our upcoming Europe trip. My other card is the Amex Explorer.

Happy with it. Fx fee free. 1 Qf pt per $ for1st $5000 per month spent on it, then 0.5 pt per $....also have a very hight credit limit in case I need to buy / pay for somethimg expensive in foreign currency (eg J tickets).

Main negative: $270 annual fee.

 

[Himeno]

On my current trip, I've seen the DCC pop up a few times. One time, the operator pressed the local currency option before handing me the EFTPOS reader for the PIN. The other times, I've selected the local currency myself.

I've selected to pay in AUD once when I saw this, the first time I saw it before I knew what it was, at a store at SIN. Have had a shop assistant select AUD once without asking.

 

[Gredgy69]

Happy with it. Fx fee free. 1 Qf pt per $ for1st $5000 per month spent on it, then 0.5 pt per $....also have a very hight credit limit in case I need to buy / pay for somethimg expensive in foreign currency (eg J tickets).

Main negative: $270 annual fee.

Thanks kpc. The BW More World MC has an annual fee of $270 as opposed to the Qantas World MC version with $320 annual fee (must have gone up). I was leaning towards the Qantas version, with 100,000 bonus qantas points, and the ongoing qantas earn is more attractive than the more rewards points option.

 

[martcole]

Hilton KL automatically tried to charge me in AUD when I settled the bill....I refused to sign, asked them to cancel the transaction, and recharge me in Ringgit...I gave them a polite lecture why I had done so...the staff member had no idea about the increaaed cost of DCC, and clearly must have been instructed to do so.

I have stood my ground a couple of times with this (in Spain) until a manager comes to settle it.
Problem being in restaurants the staff often have no ability/authority to process a credit and reverse the transaction either let alone an understanding and with my broken Spainish.
Some are very quick to just hit the button fastern that the customer can see.
I watch carefully now or default to cash as much as possible.

 

[marki]

Whilst not directly in person, I have sometimes found amazon or Alibaba conversions to actually be good - good enough that I'll swap from a non (or low earning) card to a high earning card. This is certainly the exception and likely exists because these huge global marketplaces operates with all major currencies anyways.

Thank you for reminding me. I have found the same BTW which means a better rate encouraging the purchase along.

 

[Lynda2475]

Have had a shop assistant select AUD once without asking.

Ive had this happen twice once in Fiji and once in NZ, both times Ive handed the terminal back requesting the transaction be cancelled/refunded and redone in local currency.

 

[Beano]

Ive had this happen twice once in Fiji and once in NZ, both times Ive handed the terminal back requesting the transaction be cancelled/refunded and redone in local currency.

The transaction isn't complete until you accept it. You can change the currency yourself on devices I have been presented with until that time.

 

[Beano]

Another point is that I had the same charge in AUD on two different cards, one company card and one personal, with the same bank 8 hours apart. The conversion to NZD, my home currency, was a few cents different for each transaction. Probably a currency shift?

 

[Lynda2475]

The transaction isn't complete until you accept it. You can change the currency yourself on devices I have been presented with until that time.

Yes but in Fiji the cashier, clicked yes to accept the dcc before handing terminal to me, so I refused to enter PIN until it was reversed.

Normally they tap and hand you terminal so you can see any prompt and choose the local currency.

 

[Beano]

Yes but in Fiji the cashier, clicked yes to accept the dcc before handing terminal to me, so I refused to enter PIN until it was reversed.

Normally they tap and hand you terminal so you can see any prompt and choose the local currency.

That was sneaky! I've mostly been given a choice.

 

[SYD]

That was sneaky! I've mostly been given a choice.

In countries where it’s common, you need to watch and look carefully.

Also, I often don’t get prompted for a pin, so if the salesperson selects AUD, it’s done.

 

[SydneySwan]

I have stood my ground a couple of times with this (in Spain) until a manager comes to settle it.
Problem being in restaurants the staff often have no ability/authority to process a credit and reverse the transaction either let alone an understanding and with my broken Spainish.
Some are very quick to just hit the button fastern that the customer can see.
I watch carefully now or default to cash as much as possible.

I spent a month in Spain in November / December last year. DCC was the default on most machines but generally the vendor pressed EUR before passing the machine for my PIN although I was a bit sceptical at first. Some allowed me to select EUR. In over 150 transactions I was not a victim of DCC once. I asked one vendor why he had selected EUR for me and he said simply that everyone chooses EUR.

I agree with Matt, why is DCC even legal?