Article: Why is Dynamic Currency Conversion Even Legal?

[pyramidforce]

Can you still just avoid DCC altogether with an Amex card? I know acceptance is lower but at least where it is accepted, it might make it impossible to get DCC scammed by dodgy merchants.

In my recent trip to Japan, I was asked every time if I wanted AUD or JPY. Nobody tried to trick me and no dodgy machines with "accept the declining of the acceptance of the not-non dynamically non-converted currency"

 

[bernardblack]

Yes, as I understand it Amex prohibits DCC on its payment network. The problem (apart from acceptance) is that all AU-issued Amex cards have a foreign-transaction fee. The US market, if your have access to it, is different; my US Gold card has 0% FTF.

 

[Gold Member]

"accept the declining of the acceptance of the not-non dynamically non-converted currency"

Don't do what Donny Don't does.

 

[Beano]

OK, so we are agreed, DCC doesn't need to be made illegal, it's just the practice at the POS.

 

[Mattg]

This ATM in Lisbon today offered me a DCC rate with a 13.5% markup. Surely this is taking the piss?

FWIW, I declined and my Australian bank has debited $115.83 from my account for the €70 withdrawal.

 

[SYD]

View attachment 430968

This ATM in Lisbon today offered me a DCC rate with a 13.5% markup. Surely this is taking the piss?

FWIW, I declined and my Australian bank has debited $115.83 from my account for the €70 withdrawal.

Which is about $0.50 above the XE rate - as expected.

 

[SydneySwan]

View attachment 430968

This ATM in Lisbon today offered me a DCC rate with a 13.5% markup. Surely this is taking the piss?

FWIW, I declined and my Australian bank has debited $115.83 from my account for the €70 withdrawal.

I assume that was a proper bank ATM and not a Scamnet terminal. I made 2 ATM withdrawals from proper bank ATMs in Lisbon and Porto in November and got the proper mid-market rate. I can't remember if they asked the DCC question.

 

[bernardblack]

OK, so we are agreed, DCC doesn't need to be made illegal, it's just the practice at the POS.

I oppose legal restrictions on all sorts of financial practices so if I had my druthers, DCC wouldn't be illegal. But this is not a country where such principles generally prevail. And as highlighted earlier, Australian regulation has actively salted the earth where useful credit products could be offered, including stopping the card schemes from prohibiting DCC.

 

[RealtimeY]

Since I’d already selected EUR, I assumed that the message on the screen was asking if I accepted that my bank/card issuer would do the currency conversion so chose “Accept conversion”. And sure enough, the terminal then charged me in AUD with a markup.

I think the "safe" thought process here could be: "conversion" is bad, so always decline it no matter how many prompts you get.

 

[Mattg]

I assume that was a proper bank ATM and not a Scamnet terminal. I made 2 ATM withdrawals from proper bank ATMs in Lisbon and Porto in November and got the proper mid-market rate. I can't remember if they asked the DCC question.

Correct, this was a proper bank ATM and not Euronet.

 

[grandir]

By 2016 DCC was a thing
I used it a few times on a Euro trip and there was no 3% International foreign exchange fee

But the CC companies CHANGED their T&Cs to require the MERCHANT to be Australian

Got caught twice on the trip in June-Sept one in Germany with A hire car company was done by my mate while I was in the bathroom and another in Poland tap and go where the staff member had selected it without my knowledge. Small amount
Both whacked a 3% fee

It was offered more than occasionally so had to be alert to it

However Qantas Hotels does transactions in $A AND IS AN AUSTRALIAN MERCHANT so there’s no 3% fee on those overseas hotel bookings

*They require the merchant to process payments in Australia. A company can be 100% Australian, 100% fully located in Australia but if they choose to process all their payments in the Cayman Islands, then the banks will slap on the forex fee.

 

[kangarooflyer88]

And as highlighted earlier, Australian regulation has actively salted the earth where useful credit products could be offered, including stopping the card schemes from prohibiting DCC.

Australians want competition when getting ripped off at retailers. Limiting rip off opportunities to supermarkets and banks is simply not enough