DCC (dynamic currency conversion) in DR

tmnyc

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As lifeisgreat stated, don't blame the supermarket. ALL credit card purchases in DR are automatically converted to the currency of the country where card was issued. Some credit cards even tack on a 3% "foreign transaction fee".

Negative. It's converted at the card holders end NOT the merchant.

Your credit card is always charged in currency where credit card is from..it’s your credit card company that charged it not Bussiness in DR... credit cards charge more then local

Negative, that's why there is a "Foreign Conversion Fee" when charged in the local currency.

Echoing what others say above about the credit card charges. The ones who are "scamming" you (which they are not), are the credit card companies

We use Jose Luis to get the shopping done for a family of four (and have done this for years), our purchases are not small, much higher than the quantity you mention above, and I have zero negative feedback of the store. Service, products, practices, all top notch.

Did you contact your credit card company to clarify this before accusing the store of cheating/scamming (also in these supposed "other ways")?

Also, you state yourself above, that the receipt of Jose Luis stated the amount in DOP, so they did not invent the amount in USD, but your credit card company.

Negative.

Here's the real reason: Dynamic Currency Conversion... The supermarket did you ugly.

Travelers deal with different currencies when visiting other countries, some operators of ATM's and merchants offer you the opportunity (OR NOT)to pay for a product or service in the currency of your home country with the illusion that it is being done for your convenience — but usually at a significantly increased cost which translates into pure profit for the seller. You may actually see on a credit card receipt OR NOT prior to paying for a product or service- and a choice of which currency you would like to use to pay. This is known as dynamic currency conversion.

Long story short, Jose Luis processed the charge in a cardholder’s home-country currency rather than in Dominican Pesos (DOP).

For the board's reading pleasure:
https://www.americanbanker.com/opinion/stop-gouging-travelers-with-dynamic-currency-conversion

https://www.washingtonpost.com/lifestyle/travel/the-navigator-the-dangers-of-dynamic-currency-conversion/2013/05/16/cefa275a-bc0a-11e2-97d4-a479289a31f9_story.html?utm_term=.7f85e91d4234
 
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tmnyc

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“Visa requires retailers to disclose Dynamic Currency Conversion (DCC) rates plus any associated fees and ensure that cardholders are offered a choice to accept the DCC services.” “Merchants must only do DCC with express cardholder agreement.” "Visa has a global compliance program to ensure that consumers are given proper choice and disclosure. In other words, if you feel as if you’ve been duped by a DCC, you can let Visa know, and it may be able to help fix the unfavorable exchange."

"American Express currently doesn’t allow DCC conversions on most of its cards, according to a company spokeswoman."
 

tmnyc

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I have shopped at Jose Luis for the past 10 yrs and have never had a problem paying with credit card. Cashier rings you up they type in the amount that is displayed on the screen insert card receipt comes out and sign. There is no conversion on receipt bank does the conversions on back end by credit card company.

A DCC conversion, if done, is always processed at the "point of sale" (POS) i.e. "the merchant/vendor"- the front end.

If NOT requested/asked by the cardholder, the conversion will be done on the back-end- by the payment network (e.g Visa, MasterCard or American Express) and NOT by your card issuing bank. The exchange rate that you receive is set by the prevailing market rate that same date, settlement date, or next date depending who the payment network is.

Additionally, the card issuer (bank) can charge you a fee for any transaction that is charged outside the card issuer's country. This foreign transaction fee (FTF) is typically 0-3%. This is on top of the front or back-end transaction costs.
 

tmnyc

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I have been shopping at supermercado jose luis for a number of years. Many times, I pay with my US credit card. This was not a problem until now. On Oct. 29 I made a RD$ 8,164.87 purchase and paid with my credit card. I saw the total in RD$ and signed the paper. Upon reviewing my card charges I found that on credit card receipt the RD$ were converted to US$ at a very bad rate for me and I was charged the US$ amount. This scam raised my cost by about eight dollars. Is this a new scam to cheat people with non DR credit cards. What other ways is Jose Luis cheating people?

You saw the USD/DOP exchange amount on your receipt? If so, the merchant complied with card agreement. That was his disclosure to you. You signed the transaction, that was your agreement/acceptance of the DCC conversion.

That is a lesson hard learned. That was not vendor dishonesty, just lack of situational awareness on your part. Now you know- as well as those many posters that weren't aware of the mechanics of a card purchase. Hopefully, others have also learned from your mistake.

As other posters have stated, ALWAYS go with the local currency choice on your card purchases.
 

Buzzard

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What happened to the thread on DCC (Dynamic Currency Conversion)

The subject matter certainly was timely and relevant. The responses were, to put it mildly, were 'lively'.
If it has been removed, then I suggest that the issue be reopened, either via this thread or another.
The op's complaint is not without merit; a similar instance was reported at Playero earlier.
Another participant directed us to articles which confirm the existence of this practice.
The post caused me to examine my CC receipt from Jose Lois (same day as op's report) and mine was in pesos.
The bank recorded it in dollars with an exchange rate of 47.24.
Now here's where it gets weird. I went from Jose Luis to La Sirena and 25 minutes later, used the same card. This time the exchange rate was 48.03. If anyone has experienced this 'jump' I would be interested.
Also, when this 'phenomenon' occurs, is the CC receipt which you sign in Pesos or Dollars?
 

Derfish

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What happened to the other thread? He was told if he were writing that type of complaint he would have to furnish his real name and telephone number and address. Presumably he didn't choose to do so.
Der Fish
 

dv8

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what fish said. the poster did not come back with his details.

the thread is visible to the moderators so if there is interest in the subject i can pull out all the posts about DCC into a new thread.
 

tmnyc

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The subject matter certainly was timely and relevant. The responses were, to put it mildly, were 'lively'.
If it has been removed, then I suggest that the issue be reopened, either via this thread or another.

Concur, I believe the thread contained relevant and valuable information which apparently many posters were not aware of. Instead of deleting the thread, the merchant's information could have been redacted and the post retained for the sake of credit card transaction clarity. The retention of the thread benefits those who read and research the boards.

The op's complaint is not without merit; a similar instance was reported at Playero earlier. Another participant directed us to articles which confirm the existence of this practice.
The post caused me to examine my CC receipt from Jose Lois (same day as op's report) and mine was in pesos.
The bank recorded it in dollars with an exchange rate of 47.24.
Now here's where it gets weird. I went from Jose Luis to La Sirena and 25 minutes later, used the same card. This time the exchange rate was 48.03. If anyone has experienced this 'jump' I would be interested.
Also, when this 'phenomenon' occurs, is the CC receipt which you sign in Pesos or Dollars?

The variance in exchange rates was not weird. Currency exchange rates change minute to minute unlike bank tellers', exchange shops' or "Casa de Cambios'" daily rates. In card transactions, the exchange rate used by the Payment Network is the Interbank rates or commonly referred to as market rates.

These foreign exchange rates are always on the move minute-to-minute. You can watch them live on streaming markets feeds and are the official live conversion rates for a given currency pair. You can check out the charts before you make a large payment.

When the cardholder elects a DCC conversion, the CC receipt will show the card issuer's (bank) currency vice local currency or sometimes both. A charge without a DCC conversion will only show in local currency.

Tibit: Amercian Express does not allow or process DCC's.
 

dv8

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by popular demand i put relevant posts in a thread focused on DCC.
 

Buzzard

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It happened to me!

Yesterday I was checking out the new liquor store in PP "Almacenes Galerias Del Norte"and bought a bottle of Gin.
used my MC. Cardnet receipt showed the usual ("Compra, ITBIS,Monto")with the correct total.
Except: under all of the usual was the conversion to US$ @45.5, and a dollar amt.
I was told that this was for informational purposes only and that if there was a problem I could return purchase for a refund.
Sure enough, when I checked by MC purchases, it was posted in US$.
So "Caveat emptor" everybody, and don't believe what the store tells you re "DCC".
 

newuser

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You saw the USD/DOP exchange amount on your receipt? If so, the merchant complied with card agreement. That was his disclosure to you. You signed the transaction, that was your agreement/acceptance of the DCC conversion.

That is a lesson hard learned. That was not vendor dishonesty, just lack of situational awareness on your part. Now you know- as well as those many posters that weren't aware of the mechanics of a card purchase. Hopefully, others have also learned from your mistake.

As other posters have stated, ALWAYS go with the local currency choice on your card purchases.

This is a very interesting thread and I was not aware of DCC charges because I never use a credit card in the DR. I always pay cash. However, sometimes, I have noticed at restaurants that the waiter will bring me the check and it has amounts in both RD pesos and US dollars. Since I always pay cash in pesos I never bothered to think about the US dollar amount.

Can somebody walk me through this? If I were given a check with the options of paying in RD pesos or US dollars and if I were to use my US issued credit card, how would I assure that the charge is made in RD pesos? Thanks!
 

SKY

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In Europe generally you put the card in a machine and there is a place to touch the US amount. If you don't it is in Euros. In the DR I have seen checks payable in either pesos, US, or Euros. You need to tell the waiter which one you want. And when he gives you the receipt check to make sure it is in the currency you want.
 

tmnyc

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Yesterday I was checking out the new liquor store in PP "Almacenes Galerias Del Norte"and bought a bottle of Gin.
used my MC. Cardnet receipt showed the usual ("Compra, ITBIS,Monto")with the correct total.
Except: under all of the usual was the conversion to US$ @45.5, and a dollar amt.
I was told that this was for informational purposes only and that if there was a problem I could return purchase for a refund.
Sure enough, when I checked by MC purchases, it was posted in US$.
So "Caveat emptor" everybody, and don't believe what the store tells you re "DCC".

Your statement will always show purchases in your home currency as converted by Visa/MC network, but with DCC the conversion is done locally and your statement will show the amount converted by the merchant also in your home currency. Did your statement match the exact amount your receipt showed ($45.5)?, if yes, you were "DCCed".

"Several years ago, merchants were not required to disclose to customers when DCC was used in a transaction. This process was known as “back office DCC.” But the new disclosure requirements from Visa and MasterCard have prevented further back office DCC from taking place. All credit card companies have outlawed the practice and imposed serious penalties on violators.

Still, a version of this practice persists: Many merchants automatically will select DCC without the customer’s consent when processing a transaction, though the customer will still see the conversion rates on the sales slip. But customers who are unfamiliar with DCC often won’t second-guess why the charge appears in their home currency. Other merchants will falsely claim that their POS terminals automatically converted the purchase price to the customer’s home currency."
 

tmnyc

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Can somebody walk me through this? If I were given a check with the options of paying in RD pesos or US dollars and if I were to use my US issued credit card, how would I assure that the charge is made in RD pesos? Thanks!

If you are presented with a credit card receipt with your home currency ask that it be canceled and sign only one in local currency. If they won't, refuse to sign, pay in cash or cancel the purchase all together. I wouldn't put it pass DR vendors to fraudulently sign the "canceled" receipt after you left the premises, so make sure you get a credit receipt.
 

SKY

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I made a study in Europe on this idea of paying in your own currency instead of taking the CC exchange rate. EVERY time you were better off NOT taking the bill in your own currency and letting the card company convert it from the Euro.