Article: Why is Dynamic Currency Conversion Even Legal?

[Lynda2475]

Some may view the fact that you see the purchase price in their home currancy as a benefit, regardless of cost!

Except that it's not a true representation of the cost in their home currency but rather one that is inflated by 3-7%, 3-7% they wouldn't pay if they opted out of DCC.

 

[SYD]

Except that it's not a true representation of the cost in their home currency but rather one that is inflated by 3-7%, 3-7% they wouldn't pay if they opted out of DCC.

Over 10% if they use a card that usually charges 3%.

The earlier example was actually 13% albeit on NZ$1 but $130 extra on a $1k hotel stay would otherwise buy a nice meal…

 

[Beano]

Over 10% if they use a card that usually charges 3%.

The earlier example was actually 13% albeit on NZ$1 but $130 extra on a $1k hotel stay would otherwise buy a nice meal…

That wasn't DCC and 10% was currency conversion AUD to NZD, so only 3% charge.

 

[SYD]

That wasn't DCC and 10% was currency conversion AUD to NZD, so only 3% charge.

What on earth did you use to get that sort of cough forex?

 

[RooFlyer]

The business selling the goods/service you buy OS does not benefit from DCC, they get the base amount that was rung up at check-out.

Of course they do; else why bother? - see the post #42 by business owner Restless here.

 

[Lynda2475]

Over 10% if they use a card that usually charges 3%.

True but they would have aid that 3% with or without DCC.

 

[SYD]

True but they would have aid that 3% with or without DCC.

Yes, as I’ve and others have said, it’s those who have a CC or DC that they know charge 3% might think paying in AUD is saving them money - until they look online or get their statement…

They’d be better off getting a Travel Money card (and they’re pretty coughpy - in general - but better than DCC).

 

[Beano]

They’d be better off getting a Travel Money card (and they’re pretty coughpy - in general - but better than DCC).

I agree. My wife won't let me use a credit card in Spain or Italy so we use a Travel Money Card. For some reason Germany is OK.

 

[kangarooflyer88]

Some may view the fact that you see the purchase price in their home currancy as a benefit, regardless of cost!

Which would be fine if the price you see at the terminal is the price you pay. Sadly many cards will apply a surcharge on top even if you were billed in home currency

 

[Beano]

Which would be fine if the price you see at the terminal is the price you pay. Sadly many cards will apply a surcharge on top even if you were billed in home currency

Double whammy then! Even more reason to use the local currency.

 

[VPS]

I find it very clunky - XE still handier as all the currencies you use are already there.

Totally agree - needs a bit more work to make it easier than xe

 

[Beano]

What on earth did you use to get that sort of cough forex?

The NZD is at a low against the AUD! The buy and sell rates are different. If you buy something in a foreign currency then get a refund, you loose out because of that.