Article: Why is Dynamic Currency Conversion Even Legal?

[clifford]

windows 7 operating system

How is that relevant?

 

[furiousmango]

Looking back at a google map, it looks like the UK is suffering the same volume of bank branch closures as Australia - the nearest big bank ATM was a 20 minute walk

 

[MEL_Traveller]

How is that relevant?

Apparently the system has frequent disruptions, buffering and has to reset. And may not then give you your money. Not supported and no security updates?

 

[kangarooflyer88]

How is that relevant?

It tells you the machines aren’t being properly maintained

 

[SYD]

It tells you the machines aren’t being properly maintained

Or, if it works - don’t mess with it…

Looking back at a google map, it looks like the UK is suffering the same volume of bank branch closures as Australia - the nearest big bank ATM was a 20 minute walk

Where are you using cash in the UK? They’re pretty much 99.9% cashless if you want to.

Ironic in that it’s one of the few countries where most ATMs are fee free!

 

[N860CR]

Have had recent experience in Poland. Most transactions come up with options of which currency to pay in & then you push the red button to opt for Zloty-other times it was push 1 for Zloty. There were a few spots (very small minority) where no choice was given but defaulted to Zloty

Post automatically merged: Jul 5, 2025

In Poland now and pretty much every machine seems to do it. Generally hasn’t been an issue, but one guy snuck an AUD push in. One this evening was very frustrating… it was an older machine so no touchscreen. Had the polish flag on the left and Aussie flag on the right. Common sense would say “1” for Poland and “2” for Aus? Nope. It was swapped around. So press 2 for the first option or 1 for the second 🫩. They scored $5 out of a slightly inebriated self.

What’s frustrating with the whole scam is that these days you just tap your card and that’s the end of it. No pin, no signature. The DCC appears after the tap when the transaction is as good as over.

 

[clifford]

Or, if it works - don’t mess with it…

Where are you using cash in the UK? They’re pretty much 99.9% cashless if you want to.

Ironic in that it’s one of the few countries where most ATMs are fee free!

I like to offload my GBP cash at Tescos. No one bats an eyelid.

 

[SYD]

I like to offload my GBP cash at Tescos. No one bats an eyelid.

Yep, many places still will take cash but there are certainly a lot of cashless places popping up around the UK.

 

[Wanderlust1985]

Why is Dynamic Currency Conversion Even Legal? is an article written by the AFF editorial team:

Why is Dynamic Currency Conversion Even Legal?

Most countries ban junk surcharges like "resort fees" because they can trick people into paying more and are bad for consumers. So, why is dynamic currency conversion (DCC) is still legal?

www.australianfrequentflyer.com.au

You can leave a comment or discuss this topic below.

@AFF Editor What ever happened with your TAP Portugal Airlines example? The exact same thing happened to me today.

Booked a flight, the charge came through on my Bendigo Bank Ready Credit Card (No FOREX Fees) at $25 more than expected. I checked the transaction and it had been charged in AUD. At no point in the TAP booking process was my payment quoted in anything other than EUR.

I'd like to disupte the transaction, but at the same time i need to take the TAP flight (going from Ghana to Sao Tome and Principe, excited!) Is there any justice or do i just have to suck it up?

 

[AFF Editor]

@AFF Editor What ever happened with your TAP Portugal Airlines example? The exact same thing happened to me today.

Booked a flight, the charge came through on my Bendigo Bank Ready Credit Card (No FOREX Fees) at $25 more than expected. I checked the transaction and it had been charged in AUD. At no point in the TAP booking process was my payment quoted in anything other than EUR.

I'd like to disupte the transaction, but at the same time i need to take the TAP flight (going from Ghana to Sao Tome and Principe, excited!) Is there any justice or do i just have to suck it up?

I requested a credit card chargeback (only for the difference between what I should have paid in AUD and what I did pay) with my Australian bank, which was successful. I got back around $19, from memory. My bank needed for me specify the exact amount of money that I was overcharged in AUD, so I used a screenshot of the MasterCard FX calculator, showing the EUR amount converted to AUD and backdated to the date I booked my flight, as the basis for the "correct" price.

I ended up later taking the TAP flight without issues.

 

[SYD]

In a new DCC low, some POS machines in Spain prompt a question in English:

“Do you want to pay in AUD” with a “Yes “ or “No”options.

No flags to make it easy to see EUR or AUD…

One needs to watch like a hawk but even then the server can be too quick and then it’s too late…

Edit:
It does seem to be more prevalent on MC than VISA from what I can tell.

 

[LondonAussie]

I’m surprised the EU hasn’t banned this yet.

But I suppose it only impacts visitors and not citizens.

 

[elanshin]

I’m surprised the EU hasn’t banned this yet.

But I suppose it only impacts visitors and not citizens.

Still a "relatively" new thing. Also in theory it's not bad just in practice its a bit scammy.

Like theres DCC on major retailers like Amazon or AliExpress which will work out better for you if your Aus cards have a foreign surcharge fee.

 

[grandir]

Most online stores that have DCCs are usually equal to the MC/Visa forex rates. It's the brick-and-mortar establishments POS DCCs that are the typical 3-5% ripoff.

Having said that though, just check the bill before tapping on the POS. In Europe, all transactions must be displayed in EUR so you should always check what the EUR amount is before the POS prompts you if you want to pay in AUD. And even if you do miss the amount in EUR, everyone knows to always reject the offer to pay in AUD so regardless, just punch "No" when prompted by the machine.

 

[serfty]

Most online stores that have DCCs are usually equal to the MC/Visa forex rates. It's the brick-and-mortar establishments POS DCCs that are the typical 3-5% ripoff.

Having said that though, just check the bill before tapping on the POS. In Europe, all transactions must be displayed in EUR so you should always check what the EUR amount is before the POS prompts you if you want to pay in AUD. And even if you do miss the amount in EUR, everyone knows to always reject the offer to pay in AUD so regardless, just punch "No" when prompted by the machine.

Yes, of course - until the server 'helps' by selecting the wrong option while you are still trying work out how to reject the 'offer'.

 

[SYD]

Yes, of course - until the server 'helps' by selecting the wrong option while you are still trying work out how to reject the 'offer'.

Exactly!

That was the point of my post. Most machines still have country flag and “EUR” or flag of card and local currency eg Oz Flag/AUD, so it’s pretty easy to see. But these “Yes”/“No” machines are less obvious and actually confusing. Even staff in some places thought so as well.

Last night SYD+1 got caught be a “helpful” staff member. Although, the machine wanted a signature. Thinking about it afterwards, there might have been an option to “Cancel” (and tap again).

Anyway, at new places I’m going to say immediately on tapping, “Wait. I want to pay in Euros” (and I’ll be saying that in Spanish).

Still a "relatively" new thing. Also in theory it's not bad just in practice its a bit scammy.

It’s been in some countries for several years (eg Spain) but like I mentioned up thread, more likely to be triggered by MC than VISA. No idea if it happens with AMEX, I rarely use an AMEX OS, unless it’s just a hold for a Hotel or Car Rental.

Like theres DCC on major retailers like Amazon or AliExpress which will work out better for you if your Aus cards have a foreign surcharge fee.

That’s actually quite different and a bit of a problem for many card holders whose bank will still slap on 3-3.5% Int TX fee.

True DCC never works out better - it’s about 6% to 8% (plus anny international tax fee).

The merchant gets about half of the DCC.

 

[SydneySwan]

It’s been in some countries for several years (eg Spain) but like I mentioned up thread, more likely to be triggered by MC than VISA. No idea if it happens with AMEX, I rarely use an AMEX OS, unless it’s just a hold for a Hotel or Car Rental.

I don’t think Amex permits DCC - I have certainly never experienced it.

 

[LondonAussie]

That’s actually quite different and a bit of a problem for many card holders whose bank will still slap on 3-3.5% Int TX fee.

That should be illegal. If you pay in AUD they should not be able to charge a foreign transaction fee.