Irish restaurant asked me if I wanted to pay in sterling on my Revolut card

[Brendan Burgess]

I went to pay my bill in Mario's in Sandymount yesterday with my Revolut card and was presented with this:

They say it happens just with Revolut cards.

I had not noticed this before. I presume that they are identifying my Revolut card as a sterling denominated card?

Brendan

 

[RedOnion]

I presume that they are identifying my Revolut card as a sterling denominated card?

Exactly. The card identifies itself as a GBP card.

Edit: technically the card has a country of issue, which is UK, and for DCC the currency is assumed to be GBP based on that.

 

[Lightning]

Obviously in these situations one should pay on euro and let Revolut convert.

 

[RedOnion]

Obviously in these situations one should pay on euro and let Revolut convert.

Absolutely. I think the DCC markup is around 3%

 

[tomdublin]

Yes this happens all the time with Revolut. At ATMs it's often quite sneaky as it does not inform customers that they have an option. The display just presents an amount in sterling and the options "Accept" or "Decline." Only after you select "Decline" does the ATM display the amount in Euro. It clearly seems intended to trick customers into selecting a very disadvantageous offer and it's important to be mindful throughout the entire process so as not to fall into that trap. I also wonder if this might be something for the financial regulator to look into.

 

[Brendan Burgess]

Hi Tom
But it's very dear taking out cash from an ATM on Revolut?

Free up to €200 a month

Brendan

 

[elcato]

This does not happen when tapping - right ? Only when you need to enter a pin ? I have used it in Spain and it states euros only at ATM so I don't see how it ask you do you want to exchange in sterling. I also used it in UK btw. I wonder was that when you have the account set to sterling in Ireland and then use it at the ATM.

 

[so-crates]

Hi Tom
But it's very dear taking out cash from an ATM on Revolut?

Free up to €200 a month

Brendan

Free for a given value of free. I have only taken out cash from my Revolut account, in each case I took the euro option I was charged €0.12, on the app the charge was listed as "Irish Stamp Duty for Cash at <...>"

You also can't get cashback with Revolut (as I had tried that approach before going to the ATM in the shop)

 

[elcato]

I have only taken out cash from my Revolut account, in each case I took the euro option I was charged €0.12, on the app the charge was listed as "Irish Stamp Duty for Cash at <...>"

But is the primary account set to a euro account or sterling ? I have both and I interchange them when in either zone.

 

[RedOnion]

This does not happen when tapping - right ? Only when you need to enter a pin ?

Yes, the DCC only kicks in after they've read the card and realised it was issued in UK. When you tap, the currency / amount are already known.

 

[elcato]

es, the DCC only kicks in after they've read the card and realised it was issued in UK.

Interesting. I have a sterling and a euro account setup and if you put the euro as your main account in the app I wonder does it still appear. Might try this at the weekend to see.

 

[so-crates]

But is the primary account set to a euro account or sterling ? I have both and I interchange them when in either zone.

Primary account is set to euro and I have sterling and dollars set up on it, similarly to you, I interchange then when in either zone.

 

[RedOnion]

I have a sterling and a euro account setup and if you put the euro as your main account in the app

It shouldn't influence it.
The first few digits of your card number tell what bank & country the card was issued by. From the fact it's UK, you deduce that it's a GBP card. The merchant services are providing the service to convert the currency, not Revolut, and the decision before ever making contact with Revolut. The actual currency you've set up doesn't impact it. That's just which account Revolut use when the transaction happens.

Note, not all point of sales do dynamic currency conversion. It'd be very common in 'tourist' situations; hotels, Irish design gift shops, establishments in Temple Bar, etc. And it depends who's providing the point of sale service.

There's lots of information (including changes around transparency coming into force in April) on merchant services websites. Here's Elavon as an example;

 

[RedOnion]

in each case I took the euro option I was charged €0.12

Stamp duty on card transactions is only applicable where the transaction is at an ATM in the republic of Ireland.

 

[RedOnion]

I also wonder if this might be something for the financial regulator to look into

It's a long time since I worked closely with cards, and things have changed a lot in this area. I think some countries have completely banned Dynamic Currency Conversion (at the back of my mind I think Australia did, or tried to).

Here, there's an EU directive coming into force next month that means the fee percentage added will be displayed, but it only applies within the EEA if the card was issued in the EEA. So for example a US tourist doesn't have to see it, but you paying for a hotel in Poland you would. It adds a bit of transparency.

I've been caught before with the ATMs. Particularly the privately owned ones in UK airports.

 

[tomdublin]

[QUOTE="Brenda

Brendan
[/QUOTE]
Yes, if you need more than that in Euro cash it's not a good idea to use Revolut. The "Accept or Decline"-trick I was describing is also used by some ATMs outside the Eurozone, including those that previously made it explicit to customers that they have a choice. It's really quite devious and in urgent need of regulation.

 

[MrEarl]

Hello,

Out of interest, has anyone raised these points with Revolts customer support and if so, what was their advice to avoid unjust charges?

 

[tomdublin]

Hello,

Out of interest, has anyone raised these points with Revolts customer support and if so, what was their advice to avoid unjust charges?

Revolut says on its help page that DCC has nothing to do with them and that customers need to pay attention to make sure they are charged in the currency of the country they are in. That's fair enough I guess, though I don't know whether the card issuer also benefits from the profits this generates in addition to the merchant.

 

[MugsGame]

The opposite, the issuer loses out on FX margin/fee opportunity, so it's in their interest for you not to use DCC.

My own view is DCC should be banned.

This specific issue is more down to the DCC provider and how they (mis)dentify the card/cardholder's native currency.

 

[keving1989]

Always pay in the local currency of the country you are in as a rule of thumb. ie. UK GBP, US USD, Japan Yen etc (without conversion). Amazon uk and Ryanair also pull this scam off too when they determine the card you are using is not the same as the currency they are charging you on their sites.
If you booked a Ryanair flight in the UK, you may have paid over the odds
Ryanair continues to rip-off passengers with dynamic currency conversion
Be very careful when traveling abroad as well and when using foreign atms, Euronet is notorious for fleecing people through misleading interfaces and dark patterns in order for you to choose the options that make them the most money.

With or Without Conversion: How to Avoid Hidden Fees When Taking Out Money Abroad

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