In small type on the Hertz invoice: “I have been offered a choice of currency and chosen to pay my rental charges in the currency of my card.” The renter's charge at the end of the rental was 687 euros. By agreeing to pay that balance in dollars instead of euros, she allowed Hertz to use Dynamic Currency Conversion (DCC) which used an exchange rate of 1.46. The interbank exchange rate on the day of the transaction was 1.39. Had the renter demanded to pay in euros, her credit card would have processed the charge using the lower interbank rate, instead of the higher DCC rate. This Hertz slight of hand cost the renter $48, money that went to Hertz and the company that provides the DCC “service.” The final charge appeared on her credit card statement as $1003 instead of $955.
The renter told Gemut.com the agent never mentioned currency when she signed the paperwork. When signing credit card slips in Europe it is imperative that you find out in which currency you are being charged and pay only in local currency, not in dollars. DCC is a huge ripoff, it does nothing for the customer and benefits only the retailer and the Dynamic Currency Conversion vendor.