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Ryanair-Extortionate exchange rates ( Complaint to CCPC, ECC Ireland & Ryanair)

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    #122
    delahuntv
    Closed Accounts Posts: 1,532 ✭✭✭delahuntv


    Graham wrote: »
    On the surface it sounds like you may have found a DCC provider that doesn't cream too much extra off the customers and a nice additional .5% onto the value of each transaction for the retailer when they direct customers through DCC.

    All very interesting but do you know if Ryanair use your DCC provider? I wonder if they also operate at 3% above mid-market.

    That seems to be the rate of them all - FEXCO are also 3% (they partner with First data so would be UK biggest provider even though its based in Killorglin and Cahirciveen)

    It does seem to be the fact that DCC uses the rate from early on the day of the transaction and visa/mastercard use rate at time of settlement which is at end of the day and with rates changing substantially on some days, it becomes very noticeable - as above, today is a prime example with a 1.2% spread so far between the morning rate and 1pm rate.

    So a UK customer buying in euro today would probably be 0.5% better off on DCC whilst a Irish customer buying sterling goods today may find 3% difference against them.


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    #123
    user1842
    Registered Users Posts: 1,112 ✭✭✭user1842


    delahuntv wrote: »
    I rather believe Elavon who operate the system than a "journalist" pn an online site.

    If it was as you say, I could make an absolute fortune because the current Visa rate as per their site is .7378 and the market rate is currently .7413 (1% move since 8am)

    Hence, I would be GUARANTEED a profit at this minute of 0.40p for every £1 if I had a card that had no foreign tarnsaction fees (some student accounts)


    Considering card transactions are in the multiple millions every day, it would be a massive loss for VISA, and I just donlt think they make losses like this.

    At least I posted a link. Can you please post a link on Elavon's website that backs up your claims?

    If what you say is true how can VISA give me a rate for today, now? Surely they can only give me todays rate tomorrow or this evening.

    http://www.visaeurope.com/making-payments/exchange-rates

    VISA's rates are set at the start of the day for consumer transactions, not at the end of the day. Please stop saying otherwise.

    http://imgur.com/jqrB72p


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    #124
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    delahuntv wrote: »
    So a UK customer buying in euro today would probably be 0.5% better off on DCC whilst a Irish customer buying sterling goods today may find 3% difference against them.

    I'd like to see the calculations behind that.

    I did a quick Google search for 'Dynamic currency conversion comparison', the results fall neatly into two types.

    1) Companies offering DCC to retailers/merchants extolling the virtues of an additional revenue stream.

    2) Consumer organisations/bloggers advising the public to avoid DCC.

    The last one is particularly telling as it's targeted at merchants not consumers.

    Wikipedia:
    the DCC transaction is correctly charged at EUR 8.20 while the non-DCC is charged at EUR 8.04 - a difference of almost 2%. While this may seem a small amount for the customer, it can mean a big income stream for the DCC operator and merchant.

    https://www.ricksteves.com/travel-tips/money/card-fees
    Avoid dynamic currency conversion (DCC). .../... you’ll actually end up paying more.

    http://thepointsguy.com/2013/07/just-say-no-to-dynamic-currency-conversion/
    The additional fees can be as low as 1%, but they could wind up tacking on as much as 7% of the purchase price! Much of this goes directly into the seller’s pocket

    http://www.moneysupermarket.com/travel-money/using-credit-cards-abroad/
    You’ll be charged a higher exchange rate for dynamic currency conversion, which isn't worth paying.

    http://blog.moneysavingexpert.com/2013/03/12/using-plastic-overseas-always-pay-in-euros-even-if-it-says-0-commission/
    If using a card and you’re asked whether you want to pay in pounds or pay in local currency (eg Euros) ALWAYS say the local currency (the same almost certainly applies US Dollars when in the states or other currencies elsewhere too)

    http://blog.ontraport.com/automation/myth-multi-currency
    THE MYTH OF MULTI-CURRENCY
    But here’s the industry secret: that conversion fee typically isn’t waived even if they do choose DCC. Most credit cards impose the fee whenever a transaction occurs outside of the cardholder’s home country. And the merchant accounts offering this service tack on an additional convenience charge of 3 – 7% that’s shared with you, the merchant.

    You can see why customers would be peeved, unaware of how much they actually paid you until weeks after the transaction. Charging your customers hidden fees may increase revenue temporarily, but it often drives them to the welcoming (and honest) arms of your competitor.


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    #125
    A Dub in Glasgo
    Registered Users Posts: 17,189 ✭✭✭✭A Dub in Glasgo


    I am grateful that Ryanair do flat pricing eg the price quoted is the same in € or £ therefore I book singles now with the Glasgow to Dublin leg billed in £ and the Dublin to Glasgow leg billed in €. I always uncheck the DCC box and pay with my Nationwide VISA for that extra saving :)


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