foreign currency fees - a rip-off!

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$CJ said:
One very important factor to beware of though are merchants and/or merchant terminals that convert back to AUD without your permission.
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Where and how did this happen? I guess you didn't check the currency before signing? I've never had a transaction abroad converted on the spot like that.
 
$CJ said:
One very important factor to beware of though are merchants and/or merchant terminals that convert back to AUD without your permission. On a number of times I have handed over the Wizard card - sacrificing points & insurance to get a good rate - only to be scammed at some ridiculous exchange rate anyway.
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Often you get charged a 1.7% commission as well when transactions are converted back to AUD on the spot. But as I don't have a wizard card, that isn't so bad considering all my debit and credit cards charge a 2.5% currency conversion fee.

Lots of major hotels overseas offer this facility.
 
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serfty said:
One should always check what they are signing - it's a basic tenet.
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:confused: Like I said, beware.

One usually checks the amount and signs. I've signed receipts against the USD amount then afterward noticed text (hidden in the header with the merchant details etc) saying I approve conversion to card currency at x%. I bet it happens all the time and people don't even realise. Even on the statement you just see XYZ $79.32 instead of XYZ 50USD $79.32 so it's easy to miss in the reams of other transactions.

And there are cases like hotels, rental cars, expense accounts, where you may not inspect the final account. I've had multiple issues with USD expense accounts on cruises that are billed in AUD even if you tell them not to convert.
 
serfty said:
One should always check what they are signing - it's a basic tenet.
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That is assuming that one is able to read the fine print on the small receipts given to sign. I struggle at the best times. Time to get glasses I think....
 
spunkarooney said:
Where and how did this happen? I guess you didn't check the currency before signing? I've never had a transaction abroad converted on the spot like that.
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Just about all the shops at SIN seem to offer this "service"
 
oz_mark said:
Beware of the Visa/Mastercard "service" known as Dynamic Currency Conversion.

See Dynamic currency conversion - Wikipedia, the free encyclopedia
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This bit from the article is interesting:

The service guarantees that this exact US dollar amount will be debited to the cardholder account, and the exact euro amount will be credited to the merchant’s account, to the benefit of the merchant.
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Presumably, the exact euro amount is the same as the price of the goods. (certainly, if it was more I wouldn't be signing it) So its not clear to me how the mercahnt benefits.

This all supports my rule that cash is king when O/S.
 
medhead said:
This bit from the article is interesting:

Presumably, the exact euro amount is the same as the price of the goods. (certainly, if it was more I wouldn't be signing it) So its not clear to me how the mercahnt benefits.

This all supports my rule that cash is king when O/S.
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Well... I think it's mentioned in the article that the merchant gets a cut of the inflated exchange rate conversion.

No, NAB Gold Banking Visa debit rules. There has been an extended discussion about this.
 
serfty said:
YMMV, for me the Wizard has the magic!
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Wizard is the bomb, especially @ the 3% advantage I demonstrated above :mrgreen:

I just hope it doesn't get clawed back and killed off. If so it's probably my fault - mine has always been in credit balance - I was using it to withdraw cash at any ATM for nix :D
 
spunkarooney said:
Well... I think it's mentioned in the article that the merchant gets a cut of the inflated exchange rate conversion.
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It does say that later in the article but the bit that I quoted impies the opposite. If I pick up a leather jacket in rome that is labelled 200 euro, I am not going to sign a docket that says $A500 and 220 euro. I will expect the euro amount to match, regardless of the exchange rate used or that I might be getting ripped in $A.
No, NAB Gold Banking Visa debit rules. There has been an extended discussion about this.
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Won't a nab gold debit would still be subject to DCC. Whereas NAB will give me cash fee free from O/S ATM and that is not subject to DCC.
 
medhead said:
Won't a nab gold debit would still be subject to DCC. Whereas NAB will give me cash fee free from O/S ATM and that is not subject to DCC.
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As is your right, you decline to accept the DCC.

I've previously posted in AFF that tests I've done whilst abroad found that NAB Gold Banking rate for purchases is the same as that for cash from an ATM.
 
Hence, to avoid dynamic currency conversion cash is king.

edit: that is say, cash means you don't get caught out and you don't have to remember to check the docket each time, etc.
 
spunkarooney said:
And sometimes impractical when travelling.

As stated, you can always decline the DCC.
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Well we are talking about creditcard fees rather than the practicalities of carrying cash. But in any case I find cash to be just as practical (or inconvienent) as a card. But then I also use my cards in a ways that maximise the security and minimise the convienence. ;)
 
I'll be trying out the anz travel card in us$ next week.

It does cost $11 though, so may/may not be cheaper. No foreign fees though..
 
bambbbam2 said:
I'll be trying out the anz travel card in us$ next week.

It does cost $11 though, so may/may not be cheaper. No foreign fees though..
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Granted it has, "No transaction fee when you use your card to make purchases (eg at restaurants or hotels)." but that's the same as any other credit card or scheme debit card.

The PDS shows that it has a reload fee of 1.1% even for BPAY reloads. That's bad enough in my books.
 
Alos, the Forex rate on the ANZ travel cards is generally poor. (For this type of product they are not on their Pat Malone there.)

Today, USD100 will cost you AUD143.40 at and exchange rate of 0.6974.

Current Mid market rate? 0.7170.
 
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