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Mastercard bans Dynamic Currency Conversion on prepaid cards

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Your travel life gets a tiny bit easier from Friday.  Anyone with a prepaid Mastercard will no longer be offered Dynamic Currency Conversion.

Dynamic Currency Conversion is when a shop or hotel offers you ‘the convenience’ of paying in your home currency, whilst failing to mention that a charge of 5% or so will apply.  To add insult to injury, your credit card will often add an additional 3% foreign currency surcharge – even though you paid in Sterling – because the transaction originated outside the UK.

Mastercard bans Dynamic Currency Conversion on prepaid cards

From Friday, prepaid Mastercard products – which includes loadable cards such as WeSwap – will be blocked from DCC.  The card terminal will block it at the point of payment.  This may also include the Miles & More Mastercard which is technically a prepaid product.

The easiest way to avoid DCC is to pay with an American Express, since Amex bans the practice entirely.  Unfortunately, UK American Express cards charge 2.99% foreign exchange fees so it makes more sense to pay with a specialist Mastercard or Visa which waives this.

moneysavingexpert.com has more details on this story here.

(Want to earn more miles and points from credit cards?  Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards Update’ link in the menu bar at the top of the page.)

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