Currency conversion question

[snufl]

Has anyone had this happen before?

I have been using the Wizard Mastercard recently for a number of overseas hotel bookings, a few in Euro. I've been happy because the Mastercard currency conversion tool has been quite accurate with the amounts charged to my card. Then last transaction, I'm billed roughly $47 australian more than the conversion rate for the euro on that transaction date.

I phoned Wizard and was told it was because the hotel charged in AU not Euro (even though I was quoted in Euro). All my other transactions show a foreign $ amount and then the AU$. It seems this one just shows a charge in aussie dollars.

Then I phoned Starwood as it is a Starwood hotel and was told the hotel would have charged in Euro but the local bank in italy would have converted to aussie dollars at their rate of the day. I'm waiting for written confirmation from the hotel that they did, in fact, charge in euro.

Has anyone heard of this before? An overseas regional bank using their rate and not the mastercard rate for conversion?

 

[ric_melb]

Rather looks like Dynamic Currency Conversion.

Various terminals overseas are set up to charge you in either the local currency or your home currency. ie Euro or AUD.

If the AUD is selected by the hotel the conversion rate is lousy, and in fact would be a rate agreed by the hotel and the Italian bank. I very much think what happened to you was a hotel thing, not an Italian bank thing.

There are many posts on Flyer Talk about this in the Starwood forum.
Not sure you will be successful in getting some or any of your $47 back, but those posts may help, or others on this forum may have answers.

 

[Danger]

I can't help with your specific issue but I would encourage you to persist with Wizard. I had a hell of a fight with them 12 months ago over a significant conversion loss (for me). Only after I wrote to the ombudsman did Wizard phone and say 'while we stick by our position, in the interests of having the issue resolved we're willing to give you what you asked for'. Ha.

I've been happy because the Mastercard currency conversion tool has been quite accurate with the amounts charged to my card.

Where does one find this tool?

 

[snufl]

This is the link to the conversion tool https://www.mastercard.com/us/personal/en/cardholderservices/currencyconversion/index.html
I've been checking my transactions with this and there has only been very minor differences in the rate (minor enough to keep me happy).

The latest one is out around 3%. I'm starting to think it was caused by Dynamic Currency Conversion but I didn't think a hotel could do this without me agreeing to it. The "Italian bank" theory really threw me into confusion.

I'll wait to hear back from the hotel before doing anything more but I'm determined to find out the cause. No good paying an extra 3% and not even earning reward points.

 

[Happy Trails]

This is a not an uncommon practice with in Europe. They offer you the option of paying in AUD, make it sound like they are doing you a favour, but the rate will be worse.
Ther must be something in it for the retailer.
Always opt to pay in local currency and check that is the case before you hit 'enter'.

 

[Flashback]

I can't help with your specific issue but I would encourage you to persist with Wizard. I had a hell of a fight with them 12 months ago over a significant conversion loss (for me). Only after I wrote to the ombudsman did Wizard phone and say 'while we stick by our position, in the interests of having the issue resolved we're willing to give you what you asked for'. Ha.



Where does one find this tool?

There's no point "persisting" with Wizard, they haven't done anything wrong. It's the hotel who processed the payment. The only place I've come across this happening so far was a hotel in AMS, and I simply asked them to redo the tx, but in the local currency.

 

[drron]

This week I have prepaid a few SPG European hotels with Amex and not had the problem.My guess though would be the hotel has done the billing in AUD.

 

[moa999]

Think with most of the hotels you need to insist on being charged in local currency.

Am sure there is some form of kick-back given the coughpy rates

 

[serfty]

It's almost certain the overseas hotel has done their own currency conversion and charged you in AUD.

If you check your paper statement you will probably find only the one transaction line showing an AUD amount.

Generally for Wizard international transactions there are two lines, one showing the AUD amount you were billed and another showing the foreign currency amount with a $0 billing.

Did you book these hotels online?

 

[Gary Steiger]

Sadly, this is becoming an all too common practice. Your defenses:

1. When making a reservation, always get the rate quoted in the local currency of the merchant. The only exception would be when the company with whom you are doing business guarantees the quoted rate in your own currency. (Auto Europe is the only company I have found that does this.) I learned this lesson the hard way at a Starwood hotel in the Iguaçu National Park of Argentina. Prices are quoted to me online in US$. They wanted to pull this scam, so I just paid them US$ cash, which, fortunately, I had with me. Even though I was in Argentina, they couldn't refuse, since that was the amount they promised to charge me the room.
2. Before handing over your credit card to pay the bill, ask for the specific number you will see on the tag that represents how much you will be paying. That number should be in the local currency, or you will notice the difference. Absolutely insist that you will pay only in the local currency. If they refuse, go to the local ATM and withdraw local currency from your bank account (not your credit card account) and pay in cash. (I threatened to do this once. They relented. Local currency is legal tender in the local country, so the business must accept it.)

 

[snufl]

Thank you for the replies so far. The reason I originally posted was that I was told the hotel would have charged in Euro but the local bank may have converted to aussie dollars, this is what threw me.

I have booked several Starwood European hotels online recently and this is the first time I struck a problem with currency conversion, all others charged in euro and conversion worked well with the Mastercard tool. Here are the details:

• I booked a prepaid non-refundable special rate online, quoted in Euro.
• Later the same day I phoned the hotel and asked them to charge my card asap, I also checked they had my Wizard card details. (The reason for this was another hotel took several weeks to charge my card for a prepaid booking and sometimes hotels have another of my credit cards on file).
• I am aware of Dynamic Currency Conversion but it was never mentioned by the hotel and I certainly didn't approve it, so I expected to be charged in euro. If asked, I would have said no, as I have when asked at checkout in the past.
• As yet I don't have a paper statement from Wizard but when I checked my transactions online I phoned Wizard and was told the hotel charged in AU$

So far, I only know what I have been told over the phone. Until I get further information from the hotel I don't want to jump to conclusions. Something has gone wrong but until I get all the facts I can't be sure what it is. I'll report back when I find out.

 

[Dr Hiro]

Hi snufl and others:

I am fairly new in the community, but thought that I would put in a few suggestions:

THE SAME SITUATION HAPPENED TO MYSELF about 6 wks ago. I was using a Wizard card as well, though booked with another international hotel chain.

IT IS WORTHWHILE persisting with Wizard, HOWEVER, make sure if you have all documentation.

I managed to get the DCC charge reversed, then the hotel charged me again in the local currency (then Wizard/Mastercard did the currency conversion, which of course tends to be more favourable to us customers).

This is what I did:

1. Check your booking/reservation confirmation. What was the currency used? If it confirms Euro, then continue reading. If it says AUD, then I don't think you can fight it.

2. Were you at anytime during the booking process, offered a choice of settling in AUD? If not, or if offered (but you declined), then read on.

3. Ring Wizard (with your written booking confirmation in Euro), and state that you would like to dispute the transaction. I first downloaded the Dispute Transaction form, faxed all the supporting document, and also rang Wizard a few days later.

4. I asked to speak with the anti-fraud section (or something similar). I had to speak to 2-3 people before they knew what DCC was, and why I was disputing it.

5. Advise Wizard that you did NOT AUTHORISE DCC (someone may help me out here with some legal reference, but my understanding is that the customer must be given a choice and explicitly agree to have the DCC performed, otherwise it is not *legal*).

6. I also told Wizard that I would go to the financial Ombudsman if matter not handled or explained to me to satisfaction (note I had all the documentation and case clear cut).

7. The DCC transaction was reversed THRU CHARGEBACK (done within 2 business day after I spoke with Wizard). And the hotel chain resubmitted its charge in the local currency.

So in summary, you can have the situation resolved, but make sure you file the paperwork with supporting documents ASAP.

What was the amount involved in my case? About 5 (FIVE) AUD. But I did it for the principle.....

Hiro

PS Feel free to drop me a private email if any further info/help require from me.
GOOD LUCK!

BTW, I believe DCC can only be done for Visa/Master, but NOT AMEX at this time.

Oh, also the Wizard rep handling my case gave me a friendly warning though. He agreed that I would win the dispute, but I also needed to prepare that the hotel involved could retaliate by cancelling my booking. I was prepared for that.....

Thank you for the replies so far. The reason I originally posted was that I was told the hotel would have charged in Euro but the local bank may have converted to aussie dollars, this is what threw me.

I have booked several Starwood European hotels online recently and this is the first time I struck a problem with currency conversion, all others charged in euro and conversion worked well with the Mastercard tool. Here are the details:

• I booked a prepaid non-refundable special rate online, quoted in Euro.
• Later the same day I phoned the hotel and asked them to charge my card asap, I also checked they had my Wizard card details. (The reason for this was another hotel took several weeks to charge my card for a prepaid booking and sometimes hotels have another of my credit cards on file).
• I am aware of Dynamic Currency Conversion but it was never mentioned by the hotel and I certainly didn't approve it, so I expected to be charged in euro. If asked, I would have said no, as I have when asked at checkout in the past.
• As yet I don't have a paper statement from Wizard but when I checked my transactions online I phoned Wizard and was told the hotel charged in AU$

So far, I only know what I have been told over the phone. Until I get further information from the hotel I don't want to jump to conclusions. Something has gone wrong but until I get all the facts I can't be sure what it is. I'll report back when I find out.

 

[snufl]

An update. I've received confirmation from the hotel that they did charge in Australian dollars. What isn't clear is whether it was an error or standard practice. I've sent a reply and hopefully the hotel will rectify without me having to take this further.

I haven't had this problem with other Starwood hotels, but in future I will make a note on my reservation or email the hotel, telling them not to convert to AU$. Easier than sorting out later.

I'm pleased that the problem wasn't with my Wizard card, it is giving me good value on overseas transactions.

 

[Dougo]

Sadly, this is becoming an all too common practice. Your defenses:

1. When making a reservation, always get the rate quoted in the local currency of the merchant. The only exception would be when the company with whom you are doing business guarantees the quoted rate in your own currency. (Auto Europe is the only company I have found that does this.) I learned this lesson the hard way at a Starwood hotel in the Iguaçu National Park of Argentina. Prices are quoted to me online in US$. They wanted to pull this scam, so I just paid them US$ cash, which, fortunately, I had with me. Even though I was in Argentina, they couldn't refuse, since that was the amount they promised to charge me the room.
2. Before handing over your credit card to pay the bill, ask for the specific number you will see on the tag that represents how much you will be paying. That number should be in the local currency, or you will notice the difference. Absolutely insist that you will pay only in the local currency. If they refuse, go to the local ATM and withdraw local currency from your bank account (not your credit card account) and pay in cash. (I threatened to do this once. They relented. Local currency is legal tender in the local country, so the business must accept it.)

Thanks for the tip Gary. We're going there in December and I would have been none the wiser so now I'll be on the lookout for it...and maybe pay in the local currency to avoid the problem.

 

[A380FIRST]

Hi Snufl and others reading this thread.

Thanks for posting, I learned something today.
I usually just accept what they say I owe and sign away even if I am thinking that sounds a bit high. Now that I have this knowledge (especially about only agreeing to pay in the currency of the country I am in) I think I will save some money.

I am taking my daughter on a rtw in November will be using this tip.

Again thanks for the handy advise EVERYONE who posted

 

[snufl]

Thought I'd let everyone know the final outcome. The hotel has been back in contact and agreed to credit the difference in rate, to be used on food/beverage while we are there. This was actually my suggestion as it seemed the least complicated solution. I don't think it will take too many drinks to use up $47 in Venice

 

[melaus]

A very common problem when paying by "VISA" in Thailand in hotels and restaurants.
Now I check the slip carefully before signing. If the conversion to AUD has already been done on the slip, usually by a major Thai bank, I refuse to sign it and have them do the transaction through another terminal, which they invariably always have, and re-do in local THB. Strangely enough the Thai Bank of the THB slip is often the same bank as the one which issued the AUD slip!
Complaints to VISA INTERNATIONAL, here in Australia falls on deaf ears.
Does make a huge diffence to the end amount which you pay, I've studied this and done the sums over the last 5 years or so. Probably happens in other parts of Asia as well but haven't come across it to date.

 

[Dave Noble]

Complaints to VISA INTERNATIONAL, here in Australia falls on deaf ears.
Does make a huge diffence to the end amount which you pay, I've studied this and done the sums over the last 5 years or so. Probably happens in other parts of Asia as well but haven't come across it to date.

Whether it makes much difference depends on the % difference that they charge and the % charged by home bank for currency transfers. My bank charges 2.5% for foreign transactions so if the DCC cost is 2.5% or less off of the rate of the day it doesnt bother me. It isnt necessarily bad unless with a bank such as (iirc from another thread) ANZ who charge currency fees for all overseas transactions regardless of whether it is in AUD or not

 

[serfty]

I guess this is more of an issue when, as in the OP's situation, they are employing a Wizard MC which has no specific conversion fee.

 

[Sprucegoose]

An update. I've received confirmation from the hotel that they did charge in Australian dollars. What isn't clear is whether it was an error or standard practice. I've sent a reply and hopefully the hotel will rectify without me having to take this further.

I haven't had this problem with other Starwood hotels, but in future I will make a note on my reservation or email the hotel, telling them not to convert to AU$. Easier than sorting out later.

I'm pleased that the problem wasn't with my Wizard card, it is giving me good value on overseas transactions.

As the hotel's costs are in EUR, unless there is a scam at play I find it hard to believe they would have any interest in charging AUD.

I rang my parents once in Italy and they wanted to charge my parents for the call.

Caveat Emptor......