British tourists warned to avoid currency conversion scam!
Lots of Brits who are travelling abroad this summer are at risk of unknowingly being ripped off when paying for meals and hotels with their bank cards.
Debit and credit card transactions are amassing an additional £300 million every year in Dynamic Currency Conversion (DCC) rates which are benefiting both the bank and the seller, but not our wallets!
Dynamic Currency Conversion takes place when Brits pay by card abroad. If holidaymakers choose to be charged in pound sterling, then many are unaware that a DCC rate is added to the transaction.
This fee is the bank’s own inflated exchange rate which can add up to 4%. The trick is to always decline DCC and ask to be billed in the local currency.
James Hickman, managing director for currency specialist firm Caxton FX, told MailOnline: ‘When your bill arrives at a restaurant for example, you may be offered the facility to pay in pounds rather than the local currency. This could incur a service fee of up to four per cent of the value of the transaction which can legally be charged.’
The Dynamic Currency Conversion is sneakily sold as a ‘convenience’ for holidaymakers, but this is far from the truth! If you are charged in pounds without your permission whilst abroad, then you should remind the retailer that you didn’t want them to use DCC and you are within your rights to ask the receipt to be voided.
CLICK HERE to read more about DCC charges.
CLICK HERE for my tips on managing your finances responibly.