Dynamic Currency Conversion in Europe

[snufl]

We recently returned from Europe, visited Germany, Italy, Switzerland & Austria. Dynamic Currency Conversion was very widespread. Not only hotels but retail stores, restaurants and tourist attractions.

In most cases I was asked which currency to charge and had to circle the local currency before signing, I still got caught with one small purchase being charged in Australian dollars.

I'm not trying to advise anyone whether or not to use DCC, it may suit your personal circumstances, but if you use Visa or Mastercard you need to be vigilant if you want it charged in the foreign currency.

 

[yohy?!]

We recently returned from Europe, visited Germany, Italy, Switzerland & Austria. Dynamic Currency Conversion was very widespread. Not only hotels but retail stores, restaurants and tourist attractions.

In most cases I was asked which currency to charge and had to circle the local currency before signing, I still got caught with one small purchase being charged in Australian dollars.

I'm not trying to advise anyone whether or not to use DCC, it may suit your personal circumstances, but if you use Visa or Mastercard you need to be vigilant if you want it charged in the foreign currency.

Another ingenious little money grubbing scheme financial institutions have come up with to pad their coffers

 

[Flashback]

We recently returned from Europe, visited Germany, Italy, Switzerland & Austria. Dynamic Currency Conversion was very widespread. Not only hotels but retail stores, restaurants and tourist attractions.

In most cases I was asked which currency to charge and had to circle the local currency before signing, I still got caught with one small purchase being charged in Australian dollars.

I'm not trying to advise anyone whether or not to use DCC, it may suit your personal circumstances, but if you use Visa or Mastercard you need to be vigilant if you want it charged in the foreign currency.

Having just recently traveled through the same places, happy to report that all the dyslexic hotels I've stayed at (Hostels) have not had this issue

 

[odysseus]

Thanks for the tip, snufl.

 

[Sprucegoose]

Another ingenious little money grubbing scheme financial institutions have come up with to pad their coffers

It would all depend on the fx rate offered and at least you have the option of locking in or taking at punt when the transaction will be processed.

I did this in NZ recently and the fx wasn't too bad,

But at least you do have an option.

Cheers spruce

 

[jpk]

The trap is that:
1) rate to AU$ likely to be worse than what your aussie bank uses
2) many banks still see it as an overseas transaction and charge an overseas fee

Hence most advisers recommend sticking with the foreign currency charge.

 

[dundas]

I haven't been in Europe lately, but the same thing happens here in Thailand every time I go to my local ATM. When I withdraw from my Wizard Clear Advantage account, the Thai Bank gives me the choice of letting them convert the amount into A$. They quote the rate they're offering, which is almost invariably at least 1Baht per dollar less the Wizard M/C rate, so at least a 3% extra impost.

 

[JohnK]

I have come across dynamic currency conversion at the ATM's in Thailand and the rate is iindeed unfavourable.

I have also come across dynamic currency conversion on some travel related websites and the only that has given comparable rates for me is Agoda.

Personally I would avoid dynamic currency conversion if offered by merchants overseas.

 

[Flashback]

I have come across dynamic currency conversion at the ATM's in Thailand and the rate is iindeed unfavourable.

I have also come across dynamic currency conversion on some travel related websites and the only that has given comparable rates for me is Agoda.

Personally I would avoid dynamic currency conversion if offered by merchants overseas.

The ATM at St Pancras International Train Station (London) does this also, I declined instead opting for my Wizard C/C to do it's own conversion.