tell merchant to charge you in Euros

Although this comes up regularly, your experience is a great reminder to newer travelers who wouldn’t know to search for this kind of information!

Some might quibble about it being a scam, but this is as good a place to add a warning as any (hopefully easy to find).

Since this is 100% legal to charge this fee, it is technically not a scam, at least in terms of the law. Morally, that is another story.

The salient point here is that one needs to check the credit device (at ATMs you are already looking at the screen) before approval and see what it shows. Which means demanding that the merchant release it to you first. Only once has this withholding been attempted on me, at a restaurant on the Ramblas.

Good reminder, tapping is so routine that I often forget to look at the screen.

We have had this happen a number of times and it is generally the waiter or clerk asking -- Dollars or Euro???? We always say Euro and it is not a big deal. The 3% may also be the standard credit card fee for using it in Europe. Many CCs do charge a converting fee in the range of three %. You need a clear understanding of the fees charged by your credit card.

Yes, that 3% fee was from your credit card, the standard foreign transaction fee ("FTF") for a card that charges these. You may want to get one of the cards that does not charge these (CapOne MC and Chase's Amazon Visa are my go-to's). To find out how much you were overcharged by the hotel check on what the actual hotel bill was in euro, convert that to USD at that day's published exchange rate (which can be referenced), and compare to your payment less the fee (assuming the 3% was the FTF - this should be apparent from your other transactions). DCC usually costs between an additional 5 to 10% based on the greed of the merchant, this surcharge is usually split between the merchant and their bank.

British cards have a tap limit of £100, what is it in America?

I have witnessed Americans automatically choosing payment in dollars when asked, because thats what makes sense to them, even when explained (by me) why it's not a good idea. So perhaps hotel clerks just assume you will say yes, and do you the favor of making the selection. Just like the restaurant servers assume you will want to leave a big tip. Not saying its right, but I dont assume its always motivated by greed. Trying to stay positive.

Yes, that 3% fee was from your credit card, the standard foreign transaction fee ("FTF") for a card that charges these

That same card did not charge a fee on any other transaction in Italy and says on their website "Purchases made outside the U.S. with the Explorer Card are not subject to foreign transaction fees." Nor was it in the monthly card statement; instead on the hotel receipt it was as a line printed as "convenience fee" so I think it was from the vendor the hotel uses to process credit card charges.

So perhaps hotel clerks just assume you will say yes, and do you the favor of making the selection.

It's a prohibited practice according to the clearinghouses. Mastercard for example says "The cardholder must be clearly advised of the option of completing their transaction in either the local currency or the billing currency." See section 2.2.1 of https://www.mastercard.us/content/dam/public/mastercardcom/na/global-site/documents/dynamic-currency-conversion-may-2021.pdf

Why not try disputing the charge. It is very easy to do, all website enabled. You just have to fill it in.

@treemoss2 I did think of disputing but right there on the receipt it says I was offered the choice and selected DCC. Seems hopeless to contest since they have it in writing. Bad on me to go down to the desk to pay the bill without bringing my reading glasses so I could check the receipt. Instead I just put it into my pocket and thanked them for the stay. After two weeks of being charged in euros it never even occurred to me that someone would charge in dollars. I know better now.

I would still dispute it. What's to lose? Although 3% does not seem like much if it was DCC. That usually turns out to be much.more.

British cards have a tap limit of £100, what is it in America?

I don't know what it is in the US but the limit is $250 on my Canadian credit card.

...I would still dispute it. .... Don't waste your time. There is nothing to dispute. There is no fraud or non-delivery of goods/services. The 3% may be a separate issue. Hotels are starting to charge extra fees. Sometimes have to be paid in cash. A little like the "Resort Fee" that is popping up on a lot of hotels in the US. This is one reason that we tend to use cash more frequently than others especially if their is a cash discount.

This is also discussed by Rick Steves if you go to the TRAVEL TIPS SECTION here on this site, under MONEY - lots of great info there

You should be aware that the charges from the DCC are profit for the financial industry and not the hotel. It’s a good way for the banks to make more money but there is no evidence that the hotel will see any of it.

It’s a good way for the banks to make more money but there is no evidence that the hotel will see any of it.

Well, there's this from a payment solutions merchant site

Benefits to Merchants
Earn a rebated commission on every qualified DCC transaction, gaining an additional revenue stream.
https://navidor.com/dynamic-currency-conversion-dcc-international-cardholders/

Which I have always suspected to be true, as there is otherwise no reason for a merchant to offer DCC and get in arguments over the charge. Not revealing the DCC to the customer is in line with this. As I said above, technically legal. Morally, not.

When presented with that little apparatus showing US dollars or Euro , obviously I press Euro.

Most of the time I am given a choice, never assumed by the vendor that I want the payment in dollars. If not, then I ask them the price I am paying is in Euro, isn't it? That's to remove any notion they might have I want to pay in US dollars because I'm from here.

Bottom line: I don't tap or insert my cc unless I press Euro first.

Some might quibble about it being a scam, but this is as good a place
to add a warning as any (hopefully easy to find).

No, when someone adds charges to your card without your permission, its a scam or worse. The concept of DCC is not necessarily a scam if presented properly.

Since you posted this under Tourist Scams and not under a particular country let me say that in the city where I live, in some 100% tourist businesses close to the river front, you might be given 3 options and the option that will cost you the most is EURO. The choices can be EURO, USD or HUF. HUF is the most economical option.

I see the euros-or-dollars choice often, but not until after I've tapped my card. I don't see how it could happen before the tap; it's the tap that tells the device I'm using a US credit card.

Excellent post! I found that Duty Free shops will try to get you to pay in dollars i/o local currency (Euros for example). Especially to be aware if the merchant is trying to pull a fast one.

I think what happens is Americans think that this is doing them a service, not knowing that it's adding on to the price of the purchase. My sister bought something for me in France and the cost was $40 more than I calculated ,which cut into my exchange and VAT discount "profit" and why I asked her to buy this thing in France. She didn't know any better and put the charge through using dollars. I didn't say anything, but on her next trip I told her to pay in euros always.

There is no "myster-y" to Mr. E's remark. HUF is the local currency, thus an attempt to apply DCC to the various tourists from euro countries. Treat your cards as if they were the local currency and have transactions done only in LOCAL currency.