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Bits: my worst ever Dynamic Currency Conversion scam, Flybe sale, good Iberia Plus wine offer

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News in brief:

The worst example of Dynamic Currency Conversion I have seen

I was in the Waldorf-Astoria Ras al-Khaimah last week which I will review soon.  It is a very impressive hotel but, at check-out, I experienced the worst Dynamic Currency Conversion scam ever.

Hotels like to give you option to pay ‘in your home currency’ because they use an exchange rate far worse than the one your credit card company uses.  The total cost will be higher than if you paid in local currency and then paid the 3% FX fee on your card.  If you have a Post Office, Lloyds Avios or Halifax Clarity card, there will be no FX fee.

You MUST be offered the choice of paying in local currency.  A hotel is violating its credit card agreement otherwise.  Some hotels will ‘try it on’, however, and give you a card machine which displays a Sterling figure.  You need to reject this and insist you are charged in local currency.

What the Waldorf-Astoria did was worse.  I was given the card machine and the amount showing was in Dirham.  I entered my PIN.  The screen then flashed up ‘£ XXX.XX charged’ as it processed the transaction – in Sterling.

This was clear theft.  What was even more shocking is that the payment slip that came out of the machine showed the total in Dirham and only in small print did it say that I had actually paid in Pounds.

I immediately told the hotel to reverse the transaction.  It turned out that this particular card machine had been especially programmed to do this and could not work in any other way, so a different card reader had to be found.

Using the 2nd machine, I was given the option of paying in Pounds or Dirham.  I chose Dirham and charged it to my Curve Mastercard which has a 1% FX fee.

Because you see instantly the value of Curve transactions on your smartphone, I could see within seconds that I had saved £30.36 compared to the first transaction.  This was 4% of the total bill meaning that the hotel had charged me 5% for the ‘privilege’ of ‘paying in my home currency’.

You should ALWAYS reject the option to pay in £ when overseas, even if your credit card has a 3% FX fee – you will still be better off.

Flybe Super Size Spring Sale launched

Flybe has launched another short term sale – the key difference with this one is that it covers May half-term and all of the Summer.

Flights are priced from £24.99 and must be booked by 8th March.  Travel dates are from 12th April to 19th October.

Remember that you collect 4 Avios for every £1 spent on Flybe flights, excluding taxes.  Full details can be found here.

Flybe sale

Earn 480 Avios in Iberia Plus with a new wine offer

Finally, Iberia Plus has launched a new offer with its UK wine partner Vinoseleccion.

£48 gets you six bottles of 2011 Rioja.  This includes free UK delivery.  You will also receive 480 Avios into your Iberia Plus account, which is one way of activing it in order to use ‘Combine My Avios’.

A few HfP readers have used Vinoseleccion in the past and the general feedback about the wine has been positive.


How to earn Avios from UK credit cards

How to earn Avios from UK credit cards (April 2024)

As a reminder, there are various ways of earning Avios points from UK credit cards.  Many cards also have generous sign-up bonuses!

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways American Express Premium Plus

25,000 Avios and the famous annual 2-4-1 voucher Read our full review

British Airways American Express

5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £15,000 Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express

40,000 bonus points and a huge range of valuable benefits – for a fee Read our full review

Run your own business?

We recommend Capital on Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.

Capital on Tap Business Rewards Visa

Huge 30,000 points bonus until 12th May 2024 Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.

American Express Business Platinum

40,000 points sign-up bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and FREE for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.

Comments (106)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Toby says:

    “Using the 2nd machine, I was given the option of paying in Pounds or Dirham. I chose £ ”

    Do you mean you didn’t choose £? Either way, I’m shocked that a machine could even be set up that way, good to know that’s even possible.

  • Neil says:

    The DCC scam is my biggest frustration when travelling in Europe. For me the worst offender is by far Accor – even in law abiding Germany they never ask and the bill always comes up in £’s. On a recent stay at Mercure in Amsterdam they grumbled and had to go get a second machine when I insisted on paying Euro. Following a stay at the Dusseldorf Airport Novotel last year it took six weeks to get a refund of the difference (I was tired and hadn’t initially noticed the £ charge when checking out).

    • ee says:

      Pullman Bangkok charged my advanced purchase reservation in GBP rather the THB, I was not happy and complained. Issue was only resolved when escalated to GM. The difference was only about £30 but the sneakiness of it really annoyed me.

      • Londonbus says:

        Hong Kong and Mainlinad China are bad too – tthey invariabl select sterling and you get handed a machine asking for your PIN number. Not good..

  • sam wardill says:

    Hotels that scam guests like that deserve to be outed. Thanks Rob!

  • Wicks says:

    I wonder how curve can give you in immediate figure. Don’t they need to wait for MasterCard rates for the day to be published?

    • Callum says:

      There’s no such thing as a “rate of the day”, the rate is constantly changing. If you use the Mastercard website you’ll get an average of the day, but the merchant will get whatever the rate was at that specific second.

      • Callum says:

        Though on second look maybe I’ve got that completely wrong? I read that somewhere (presumably reputable) a while ago but can see no mention of it on the Mastercard Exchange rate page – which as you say, refers to daily rates. Just goes to show you shouldn’t believe everything you read!

        • John says:

          No, the rate is for all transactions on the day. Visa even publishes its rate in advance (for supercard)

  • KimJoi says:

    Hi Raffles … is there a reason why you did NOT pick Dirham when using your Curve card with the 2nd machine?

  • Andy says:

    Everywhere in Hong Kong does DCC, from PizzaExpress, ToysR’Us, to bars and hotels. You’re given (the rather small) option to tick a little box on the receipt to pay in $HK or home currency. Easy to miss when you’re in a rush.

    • Guesswho2000 says:

      Yes, that’s a major bugbear of mine in Hong Kong! The mainland is even worse though.

      In both cases I’ve regularly found the transaction gets processed and the first you know about it is a box you have to check on the receipt. A number of times I’ve had to argue the point in broken English (though which, in fairness, is better than my attempt at Chinese!).

      • Andy says:

        Yes, noticed that too. They carry out the transaction, give your card back after you’ve entered the PIN and only then give you a slip to select the currency and sign.

        Just done the maths on my hotel stay at the Sailsbury YMCA of Hong King, their DCC rate is 9.5% !!!

  • Yuff says:

    More importantly did you book the whole hotel to have a bill of £750!!!!
    The rates in Ras al-Khaimah are ridiculously cheap or they used to be when I last looked 🙂

    • Rob says:

      Big room, bill is tax deductible!

      You don’t get far in that hotel on the cheap. I was looking at some of the invoices on reception whilst the DCC saga was going on and even those on packages in standard rooms were paying £200 per night.

      • Yuff says:

        I once borrowed an iPad, from the lounge, at the Atlantis Dubai and came across a screenshot of reservations, that hadn’t been deleted, with all the room numbers and prices paid. It made for very interesting reading and also made me feel better as I had got a reasonable deal 🙂
        Admittedly lots of guests were only staying 2-3 nights, however that wasn’t surprising given the rates they were being charged, I doubt they could afford to stay any longer:( Admittedly it was Easter!

      • Callum says:

        Feel free to tell me to mind my own business, but why is it tax deductible?

        • Brian says:

          That’s the advantage of running a profitable travel blog. You get to travel business class and lounge on the beach at 5-star resorts and put the costs down as expenses! :)) Good for Rob, I say, but it’s why it always amuses me how, whenever anybody dares to make a slightly negative comment about this blog, people on here will jump on that poster’s back as though he/she has committed blasphemy and as though Rob is some poor backpacker with minimal income who is slaving away just to give us all points-earning opportunities… :)))

          • Callum says:

            That’s what I assumed, but I wasn’t sure if there was a particular business reason for being there – like he was attending some kind of conference etc.

            I have absolutely no issue with the profit he invisibly generates from this blog (as you say, many people are under the impression it’s just a casual blog), but claiming luxury holidays as business expenses because of a few brief reviews reeks of tax avoision on the scale of Amazon etc. to me.

            I’m certainly not convinced that’s the case with Rob though, hence the question.

          • DV says:

            Another typically ignorant, nasty, carping, comment.

          • Rob says:

            Business trip, to be explained on Monday

          • Callum says:

            Ignorant? Yes, I am ignorant on the matter – hence why it was a question and not a statement.

            Nasty? I’m not quite sure asking a question about his tax affairs is nasty – he certainly didn’t seem to take it that way either. None of my business sure (I did point that out and say they didn’t need to reply) but I would have hoped Rob would have pointed out if he felt it was being nasty.

            Carping? Well assuming you mean it was a critical comment, I guess you could say that. I am indeed critical about tax avoision – though again, it was a QUESTION and not a statement. A mistyped question at that – it shouldn’t have said on the scale of Amazon (assuming Rob isn’t spending millions of pounds on these business trips!).

          • harry says:

            Avoision? lol

            New word to my vocabulary.

            Nothing to add to my obvious personal conclusions about this poster, except: Callum you could just occasionally think ‘today I will post totally pleasantly, even if I have a constructive criticism or suggestion to make’.

            You have made a couple of valid albeit caustic comments in the past,

          • Genghis says:

            So as long as the expense is wholly and exclusively for the use of the business then it’s tax deductible. Nothing dodgy about it.

          • Will says:

            I had to have a chuckle at this.

            You think there’s a legitimacy in being a poor backpacker relative to a profit making enterprise with respect to deciding if it’s a legitimate expense?

            It either is or is not, it’s not based on your income, wealth, gender, age, skin colour or anything else arbitratrary.

            There are communist countries out there if you do prefer such economic systems.

        • Rob says:

          Business trip

          You think my wife lets me dump her and the kids for a solo beach holiday?!

          • Danny says:

            Well said Harry and I’m glad someone else has noticed this as nearly every comments made by certain people on here gave the impression that they must have a negative attitude towards life and other people in general. If you don’t believe me, just look at some old post comments and you will see the undertone…..

          • Genghis says:

            Harry – didn’t you know – avoision is the even greyer area between avoidance and evasion… 🙂

          • harry says:

            lol

            However, I am very forgiving to the Autism spectrum, my son is autistic & I think I’m a bit of an undiagnosed autyboy myself – universities are full of high achieving Asperger’s people, as I guess are Raffles’ boards.

          • Ryan says:

            Or even ‘aviosion’ if it also generates Avios in the process.

          • harry says:

            rather clever lol 🙂

  • Richard says:

    Rob why did you use your Curve cad and not your Supercard which I thought had no fees? Thanks

    • Adam says:

      I’m guessing he used curve as it can be charged to an amex at the back end which you can’t do with supercard. He probably has a card that gets more in value in points than the 1% charge. Either that or he has a spend target to hit on an amex.

      • John says:

        BA amex probably. Rob appears not to churn as he gets his BA amex free if he keeps the plat i think

        • Rob says:

          Correct

          • Luke says:

            The MasterCard rate is about 1% higher than the Visa rate anyway. So there is probably very little difference in reality.

    • Waribai says:

      A chance to use the Amex?

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