Dynamic FX conversion on credit cards

[tdimdad]

When booking a hotel recently, I came across a nice way of presenting the dynamic currency conversion vs paying in the local currency. I like this and wish all online retailers or payment providers would all adopt something that's equally clear and neutral. Let the customer decide...

BankWest MC converted this to $154.86.

 

[encryptededdy]

Generally I've never seen DCC offer me a good rate over what my card offers, even if my card has a 3% foreign transaction fee.

Anyway, I agree that showing the markup like this is nice. However it's not the payment provider being nice, it's the new EU Regulation 2019/518 enforcing this. Specifically, it states;

With regard to the information requirements on currency conversion charges and the applicable exchange rate, as set out in Articles 45(1), 52(3) and 59(2) of Directive (EU) 2015/2366, payment service providers, and parties providing currency conversion services at an automated teller machine (ATM) or at the point of sale, as referred to in Article 59(2) of that Directive, shall express the total currency conversion charges as a percentage mark-up over the latest available euro foreign exchange reference rates issued by the European Central Bank (ECB). That mark-up shall be disclosed to the payer prior to the initiation of the payment transaction.

However I believe this law only covers conversion between currencies in the EEA, so this merchant here probably doesn't legally need to show you this when converting to/from AUD.

 

[siri]

Just came via spore and spore airport perfume DCC is way above the currency rate .. almost 40 dollars more than the normal.. So pls avoid DCC since its a rip off.