euroon If you get fooled by this overseas money-maker, you’re on your own.
Travel experts are warning Americans visiting Europe to be wary of credit card exchange “scams” that are driving up prices on purchases across the pond.
Brian Kelly, founder of the travel site Points Guy, said Monday. A scam known as “Dynamic Currency Conversion,” DCC for short, “can cost hundreds or thousands of dollars.”
DCC is when a foreign credit card reader offers customers the opportunity to pay in US dollars or the traveler’s home currency rather than the local currency (usually Euros).
The problem is that these merchants and vendors are almost always not equivalent exchanges and include sneaky fees that aren’t completely clear to travelers who make split-second decisions.
“Everywhere I went, I was given the option to pay in US dollars,” Kelly said of her recent trip to Europe.
Mr Kelly cited a €384 bill he had incurred as an example and said he was given the chance to pay $437.
“Instead, I paid with a U.S. credit card and the charge was only $416. …If I had clicked the ‘yes’ button, I would have lost $20,” Kelly explained. We recommend using XE.com Get fast and accurate exchange rates.
“I know a lot of travelers who are confused by this,” he added.
Kelly said ATMs are also set up to do this continuously, sometimes even displaying U.S. amounts in green and European rates in red.
“They are really trying to take your money. So be smart and charge in your local currency and leave the transaction to your bank,” he advised.
Kelly is not alone in sounding the alarm over this cheap trick dating back to the 1990s.
“It’s basically a scam. Consumers are almost always paying more just to see the price in their home currency.” European consumer group warns.
“Worse still, there is no practical way for consumers to make an informed decision when presented with DCC options,” the group continued.
When paying in local currency, the cardholder’s bank automatically determines the exchange rate according to the ECO.
However, if you choose DCC, the seller’s service provider will create the conversion (possibly with a subtle fee involved).
visa There are also warnings about DCC tactics. To overseas customers.
“If you don’t see the details you need, or if you feel pressured to choose a currency, Visa recommends that you decline the currency conversion offer and report it to your card issuer. ‘ says the company.
“Your choice to accept or decline DCC will not affect your ability to make purchases or withdraw cash abroad,” Visa said.
