Article: Why is Dynamic Currency Conversion Even Legal?

[Beano]

It's a bit of a "lazy tax" - that AUD91 value purchase becomes $100 - then they get a shack when the stament shows $103.

As I said, the shock is straight away if you select your own currency and not delayed.

 

[SYD]

It's a bit of a "lazy tax" - that AUD91 value purchase becomes $100 - then they get a shack when the stament shows $103.

Do we know if cards that otherwise charge 3% add that also? ie closer to 10% “convenience” fee? I guess they must based on mine and other comments above about online purchases charging in AUD going through with the 3% charge.

It’s certainly a PITA if you have a fee free CC and get slugged 6%+

SYD+1 scored it a few weeks ago at BUD. Already overpriced airport sandwiches had a 6% markup. Never got a chance to see the POS terminal after tapping… But alt least 28° MC had no further fee.

 

[Beano]

Do we know if cards that otherwise charge 3% add that also? ie closer to 10% “convenience” fee? I guess they must based on mine and other comments above about online purchases charging in AUD going through with the 3% charge.

It’s certainly a PITA if you have a fee free CC and get slugged 6%+

SYD+1 scored it a few weeks ago at BUD. Already overpriced airport sandwiches had a 6% markup. Never got a chance to see the POS terminal after tapping… But alt least 28° MC had no further fee.

Part of the increased cost is the exchange rate, with different banks in different countries offering different rates with buy/sell prices being again different.

 

[Rich]

It is all part of the capitalist finance system . You do, mostly, have a choice of where you buy your foreign currency or how you spend your home dollars and it is what the market can bear. Are you going to say that each currency exchange should charge the same amount--- is it not legal for each shop to set it's own prices?

Yes shops set there own prices. But they set them in the home currency and the price tag only shows that currency. If I go up to the register with a 100 Euro item, that is what I should be charged, not an AUD amount with a bogus, unadvertised exchange rate.

 

[Beano]

Yes shops set there own prices. But they set them in the home currency and the price tag only shows that currency. If I go up to the register with a 100 Euro item, that is what I should be charged, not an AUD amount with a bogus, unadvertised exchange rate.

But what exchange rate are you using as a comparison? If you want to pay 100 euros for a 100 euro item, pay by cash, otherwise you are at the mercy of an international financial system, over which you have no control, but can choose your poison.

 

[Rich]

But what exchange rate are you using as a comparison? If you want to pay 100 euros for a 100 euro item, pay by cash, otherwise you are at the mercy of an international financial system, over which you have no control, but can choose your poison.

If there was a chance I might be better off (no one can give a real life example) I would look up the current Visa or Mastercard exchange rate. Or the nearest money changer.
I know the principle you arguing here, but there is only one poison.

 

[Beano]

If there was a chance I might be better off (no one can give a real life example) I would look up the current Visa or Mastercard exchange rate. Or the nearest money changer.
I know the principle you arguing here, but there is only one poison.

It is a good idea to look up the exchange rate and fees for the card issuers and look for the best deal; i.e shop around. I have used CashPassport in the past but their rates are horrible. I will look again at some other card.

 

[Rich]

CommBank Ultimate Awards Mastercard has no fee for international trx and you still get points. I kind of forgot about that recently and used my NAB (formerly Citi) debit card on a trip, also no commission.