Florida Villas and Vacation Rentals
Dynamic Currency Conversion. Be Aware!
For those of you planning or looking forward to your vacation, and intend using your credit card to make purchases whilst you are abroad beware, the potentially costly dynamic currency conversion charges could be waiting for you.
Many credit cards service providers make a charge for any transactions made outside the purchaser’s country of origin; this is called a foreign transaction fee, and is normally in the region of 2.75% of the total purchase price.Some of you will already thinking that this charge is both unfair and excessive, however this charge which allows the card company to cover their expense for turning the foreign currency back into that of your own currency, is far less that what is called the Dynamic Currency Conversion.
Quite simply this potential charge can occur when a consumer makes a purchase using their credit card and either chooses to do so in his/her currency having been asked by a member of staff or no such request is made by the retailer and the charge is automatically applied. At that charge, is a whopping 4%.
The problem here is that it is the retailer who benefits, as they levy the charge at a rate determined by them! And even though the legislation states that a consumer must be asked in what currency they prefer there purchases to be paid in, this may often not be the case.
If you are caught out by this unscrupulous behaviour, the consumer is well within their rights to request the payment be cancelled and completed in the local currency.
Dynamic Currency Conversion is operated in many countries throughout Europe and the United States Of America.There does not appear to be a specific type of retailer who operates this process, and as such you should ask for the payment to be made in the local currency as you go through the payment process.
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