Foreign Exchange Watchout

[nwsteve]

Just back from a 16 day tour of China.
Was checking my credit card charges and found a major hotel chain had processed all my charges as a US$ charge--at about a 7% premium to their benefit. Having done what most travelers here have done and made charges on a FX no fee card (Chase Reserve), and explicitly asked charges be processed as local currency, it was quite an unexpected awaking.
Short of not allowing any charges to go your room, not sure how to prevent this misrepresentation. I had made a very explicit effort with front desk when checking out the charge was to be processed as local currency, checked box for local currency on charge slip and it still came through in US $.
One more thing to be aware, especially on any large purchases.
Nwsteve

[Fedup]

Call your credit card.

[clobber]

Out of curiosity, when you signed the slip (assuming you did), was it in USD or local?

[audreyh1]

Nasty practice!

Too bad!

Your receipt should have shown the currency, but I have no idea what Chinese receipts look like and could be indecipherable.

One problem with being a tourist is places don't expect to see you again so sometimes they are motivated to pull tricks like this.

[Fedup]

They did this to me in a hotel in Oxford,UK, almost very quickly, I protested and they had to redo it. The front desk guy claimed I had agree to it. I didn't.

[Blue Collar Guy]

so in real terms how much are we talking about? Did u enjoy the trip?

[CRLLS]

Quote:

Originally Posted by clobber Out of curiosity, when you signed the slip (assuming you did), was it in USD or local?

^ This. I travel to China several times per year. I've been in many different brands of Hotels. I always make reservations in RMB, I see the room deposit(?) in RMB as I'm checking in, and the final slip is in RMB. Of course my monthly bill from the CC company is in USD.

[nwsteve]

Quote:

Originally Posted by clobber Out of curiosity, when you signed the slip (assuming you did), was it in USD or local?

Charge slip showed both local currency and US$ amounts with a box to check for your choice. Clearly marked the local currency and verbally confirmed the charge would be processed as local currency.
Suspect the charge system had been programmed to only apply the US$ amount since same thing happened at two different properties of the hotel chain involved.

[brett]

You have to watch out for this whenever you travel. We find that it is becoming common in Europe. We first noticed it in Florida (we are Canadian). The clerk asks an innocuous question about being billed in local currency. The few times we have been caught out we find that there was a 3 percent premium. Several cruise lines that we have been on also try this for about the same premium. You actually have to tick a box or they automatically bill you in your home currency.

Avis does it as well (automatically) if you are in their so called Preferred Club. We have encountered this in the US and Europe but caught it in time to have it corrected.

[kcowan]

Paypal does this too and there are two places where you have to indicate currency of the charge. Many high end restaurants and hotels do this. One thing to watch for is the total showing in your home currency but it is not required to do it.

[audreyh1]

Quote:

Originally Posted by brett You have to watch out for this whenever you travel. We find that it is becoming common in Europe. We first noticed it in Florida (we are Canadian). The clerk asks an innocuous question about being billed in local currency. The few times we have been caught out we find that there was a 3 percent premium. Several cruise lines that we have been on also try this for about the same premium. You actually have to tick a box or they automatically bill you in your home currency. Avis does it as well (automatically) if you are in their so called Preferred Club. We have encountered this in the US and Europe but caught it in time to have it corrected.

I haven't been caught by this yet in Europe, although I've been careful at checkout, etc., and I do get asked more often recently if I want it in USD.

But no-one has overrode my insistence at paying in local currency. I sure hope it doesn't get difficult.

[audreyh1]

Quote:

Originally Posted by kcowan Paypal does this too and there are two places where you have to indicate currency of the charge. Many high end restaurants and hotels do this. One thing to watch for is the total showing in your home currency but it is not required to do it.

Oh, yeah, Paypal is a stinker at this, and I often have to jump through hoops to switch back to local currency, which I have already set to default!!!!, because they keep changing the user interface. I think they try to trip you on on this. They make me mad.

[bmcgonig]

Airbnb does it too. They force you to pay in the currency of your CC. They won't let you charge it in local currency by any means.

[audreyh1]

Quote:

Originally Posted by bmcgonig Airbnb does it too. They force you to pay in the currency of your CC. They won't let you charge it in local currency by any means.

Whoa - that sucks!

[brett]

When we are in Europe we usually stay in smaller family run hotels, or B&B's.

Some require payment in cash. When we stay at one that does not I ask for a cash discount. I would typically have a credit card in my hand, and then ask for a cash discount. More often they are happy to give us a 10 percent discount for cash. Does not sound like a lot, but over two or three months of travel it can add up.

Our card charges us a 1 percent charge for cash advances-on a Visa card that we keep in a credit balance when we travel to avoid interest charges.

We have not been to Florida for a few years but we were seeing this practice of converting to our home currency in more and more locations-retail and restaurant.

[audreyh1]

Our experience is that B&Bs usually ask for cash. I use ATM/debit cards with no foreign transaction fees to withdraw cash.

[brett]

Our banks in Canada are abysmal when it comes to hidden fees. We pay 2.5 percent tacked on admin to foreign visa transactions.

We pay 2.5 percent tacked on to the FX on ATM withdrawals, plus an ATM fee.

It is one reason why we moved everything except our day to day banking away from the bank.

Having said that, we have certainly be pleased with the performance of our bank stock!

[kcowan]

Quote:

Originally Posted by brett Having said that, we have certainly be pleased with the performance of our bank stock!

Yes me too! If you can't beat them, join them!