lavillegour

I am a regular English visitor to Spain (Costa Blanca).

Just a couple of weeks ago I hired a car from Alicante Airport.

As is normal the hire company keep details of ones Credit Card and initiates the charge AFTER one returns the car and (in my case) leaves the country.

Lo and Behold a few weeks later I find a charge on my VISA Account in Sterling and not in the Euros that I 'contracted for' (by definition of the hire).

Apparently this is called Dynamic Currency Conversion.

The reason for raising this issue is :

(a) To alert you all to such practices and
(b) to seek advice or instances of similar experiences.

It is my belief that one should be given the opportunity (legal requirement ?) to pay in either Euros or Sterling

Using the Dynamic Currency Conversion system cost approximately an additional 4%.

I noticed also that a large chinese restaurant chain tried (and succeeded) with the same trick also...

EMR

This has been going on for some time now, the only way round it seems to be to pay in Euros, cash or local debit card if you have an account or risk the currency movements.

Fredbargate

I have been using a sterling Mastercard for many years in Spain and elsewhere with no extra charges always paying in the local currency not the offered Sterling choice, or should I say I tried it once to my cost.
Then last November they began to add a " Non Sterling Transaction Fee "

Now cash is King.

z0s0

I'd recommend you charge it back via your credit card company. You contracted a service to a specific EUR value, not a "similar" GBP value. They've made a charge that you didn't authorize.

I've been noticing quite a lot of this lately; including changes to the UI of POS systems to try to push users (or shop staff) into choosing the DCC option.

As you've pointed out, it's almost invariably more expensive for the customer. I presume the merchant receives a discount on their merchant fees when this takes place.

Fred James

If you do pay for it in Euros then the credit card company will convert it to Sterling at a less than favourable rate and it will probably work out much the same.

EMR

Heads they win tails you lose.!!

Yiu can buy preloaded Euro debit cards , would these be accepted by the hire companies.
At Faro you pay the agreed amount and pay cash.Debit or credit card when you COLLECT the car. Why pay on return ???.
Is this another " Spanish " practice like the infamous " full fuel tank " policy that has crept across the border courtesy of GOLD CAR.

MikeJ

However, nearly all car hire companies (certainly at Faro) will only accept a credit card as a guarantee for the excess as they make a pre-allocation of funds against the card and release it when the hire is completed. They cannot do that with a debit card or a pre-loaded currency card/preauthorised debit card. The only way round that is to buy their extortionate excess insurance which is a rip off.

EMR

They only deduct if you have damage, and if you take out a £50 annual insurance policy in the UK you are covered against their excess plus items which are not covered by their insurance such as tyres, locks etc.
Was the OP talking abot his original rental cost or any damage that may have been found on the car when returned.

Sausages

If you read reviews of Goldcar, Record, Sixt and all the other budget brands, you'll see that they all "Offer" extra insurance, make you pay for a full tank of fuel at an inflated price and tell you to return it empty along with other things that you pay extra for. So the car that cost you £120 for two weeks online and which seemed like a great deal ends up costing double. Because you sign on a tablet thingy rather than a printed sheet, you don't get to see what you're paying until you've signed.

The only way around it is to make sure you signed the printed copy and refuse to sign these electronic devices until you've seen all the costs first.

Problem is they can just say, we refuse to rent you the car, so you go to the back of another massive queue, or go and pay 3 times the price at Herts or Europcar...

lavillegour

Hey 'Guys' you've jumped all over the place here......as usual..

What has been said about the practices of hire car companies is more or less correct. Yes the cheaper ones do (mostly) offer full to empty fuels AND offer extra insurance cover (which I have recently covered by my own insurance at £39.00 p.a.)....AND to clarify the VISA 'lot' when converting local currency (euros)usually offer pretty competitive exchange rates- believe me.................BUT the practice I refer to is somewhat unique in the money making wheezes. It CLEARLY is the most expensive exchange rate and for ANY credit card customer is ALWAYS disadvantageous. (usually about 4%)

Fight it Guys and Gals --- Be Aware---- Refuse.....but take care when the charges are made AFTER you've left and of course without your signed agreement !

What I am looking for is some legal guarantee that they MUST take your requirements into consideration when charging your credit card.

I have another hire car contract soon and will be putting my case strongly.The last time I was caught out was the 1st time. Will it be the last ?

lavillegour

ps Fred James ------------- NOT SO. Generally speaking the credit card companies carry out conversion at reasonable rates these days. Check it out .

Take care you are giving inference that there isn't a problem which may encourage these get rich quick merchants to increase their rip offs and negate the warning to other unsuspecting clients !

Fredbargate

I did most of my shopping in Spain by credit card because it offered the best conversion rate.
However with this new charge introduced in November I am having to rethink my strategy, so far that is cash. Wednesday I was getting 1.17 in an exchange bureau for a few hundred €s.

Bri and Katee

We fell victim to this last year. Since then when renting we have always stipulated we want to be charged in euro. When the rental company make the conversion you will find that the rate is very poor, in our case it worked out to 9cents less than the business rate for that day!

At this sort of exchange I'd rather the card company make the conversion rather than lining the pockets of the rental companies who bloatedly overcharge for insurance and fuel anyway.