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.

 

[bernardblack]

The ACCC should absolutely not be let off the hook for punishing Visa when Visa discouraged DCC. It's one more instance where the Australian regulation has intervened to make credit cards materially worse for Australian customers, just as when they forced Visa and MasterCard to get rid of their no-surcharge rules which (predictably) led to increases is surcharging.