Using American Credit Card- Visa at restaurants- problem

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CTC1
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Using American Credit Card- Visa at restaurants- problem

Postby CTC1 » Sat Oct 01, 2011 9:04 am

Hello
Just arrived from USA to Lima, few days ago..
My question is this:

went out to lunch and lunch bill was 102 N Soles... this of course included tax.. Propina was paid cash on side... I signed for 102.... When I called my credit card company in the usa they say they see a pending charge of $44.00 US... While it should read 36 or 37 USD... My Visa card has no foreign transaction fee..

This has happened yesterday at another restaurant.. Same thing.. When I call USA Visa the charge is 6 or 7 dollars more than I it should be- they say it is a pending charge.

Has anyone experienced this??


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Re: Using American Credit Card- Visa at restaurants- problem

Postby rama0929 » Sat Oct 01, 2011 9:23 am

CTC1 wrote:Hello
Just arrived from USA to Lima, few days ago..
My question is this:

went out to lunch and lunch bill was 102 N Soles... this of course included tax.. Propina was paid cash on side... I signed for 102.... When I called my credit card company in the usa they say they see a pending charge of $44.00 US... While it should read 36 or 37 USD... My Visa card has no foreign transaction fee..

This has happened yesterday at another restaurant.. Same thing.. When I call USA Visa the charge is 6 or 7 dollars more than I it should be- they say it is a pending charge.

Has anyone experienced this??


You may want to confirm that your issuing bank has no foreign transaction fees on that card. Ask them what the deal is with those charges. There may be something happening on the merchant side, and that could be where the fee may be coming from.
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Re: Using American Credit Card- Visa at restaurants- problem

Postby CTC1 » Sat Oct 01, 2011 9:27 am

please note : this credit chard has no foreign transaction fee at all
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Re: Using American Credit Card- Visa at restaurants- problem

Postby Kelly » Sat Oct 01, 2011 9:31 am

Many merchants do charge a higher fee for using a credit card, but $6-7 is much more than that usually is.
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Re: Using American Credit Card- Visa at restaurants- problem

Postby rama0929 » Sat Oct 01, 2011 9:47 am

CTC1 wrote:please note : this credit chard has no foreign transaction fee at all


Yes, but it won't stop a bank from trying to charge it to you.

Looks that you're getting killed on an exchange rate, but even that seems a bit excessive. I think something's happening on the merchant side.
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Re: Using American Credit Card- Visa at restaurants- problem

Postby CTC1 » Sat Oct 01, 2011 9:54 am

the two restaurants where this occurred
El Mar
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Re: Using American Credit Card- Visa at restaurants- problem

Postby Alpineprince » Sat Oct 01, 2011 12:17 pm

Always ask the exchange rate before deciding on cash/credit, dollar/soles as the restaurants can use whatever rate they desire.
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Re: Using American Credit Card- Visa at restaurants- problem

Postby fanning » Sat Oct 01, 2011 1:04 pm

It has nothing to do with the merchant.
If you sign a voucher for S/. 102 then you get charged S/. 102. Your credit card is in Dollars so Visa and/or your bank do the exchange from soles to dollars.
The merchant just gets his S/. 102 minus the merchant commission charged by Visa ( around 6% - 7% ).

If however ( but contrary to what you explained ) get a bill of $36, and you choose to pay with a credit card. Then the merchant is free to charge whatever exchange rate ( probably a bad exchange rate ). He will then for example charge S/. 102, ( you sign the voucher then for S/. 102 and not for US$36 ) and then your bank exchanges that back to dollars, which could then end up being US$ 44.
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Re: Using American Credit Card- Visa at restaurants- problem

Postby NexLevel » Sat Oct 01, 2011 3:08 pm

this has happened to me when using a peruvian credit card. The pending will show an amount 5-8 soles higher than what it was. It always corrects when it finally clears, so I haven't worried too much about it.
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Re: Using American Credit Card- Visa at restaurants- problem

Postby Polaron » Sat Oct 01, 2011 4:18 pm

Also, your bank may truthfully tell you that they do not charge foreign transaction fees, though both Visa and MasterCard themselves charge 1%. So your bank may or may not add anything on to that, but they might still pass along that 1% Visa and MC charge.

Here's one thing banks sometimes do where restaurants are concerned: When a merchant swipes your card, your bank puts a "hold" on those funds (by means of reducing your available balance). Some banks anticipate a tip of 20%, and add that to the amount they block. Then, when they receive the voucher, they adjust the amount charged to you.
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Re: Using American Credit Card- Visa at restaurants- problem

Postby Pollo mani » Sat Oct 01, 2011 4:34 pm

There is no problem with the card, the places you are eating have a place on the reciept to leave a TIP on the visa card. there for they are just blocking out or your available credit enough to cover the tip. if you do not include the tip when the true accounting comes through your bill will be corrected.
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Re: Using American Credit Card- Visa at restaurants- problem

Postby CTC1 » Sat Oct 01, 2011 5:20 pm

pollo mani-
i dont get what your saying.. Again, I did NOT leave tip on my credit card.. I paid a tip cash after the transaction.. I am hoping that this is just pending and will post for legitimate price I had which was 102 nsoles- around $37 bucks.

but I dont see and understand why i am being charged more? even my credit card company has no answer, they are clueless/useless
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Re: Using American Credit Card- Visa at restaurants- problem

Postby fanning » Sat Oct 01, 2011 7:25 pm

But on your credit card statement it must say a 'consumo' of S/. 102, and then that amount converted in US Dollar. So it is you bank who does the conversion.

I have a Peruvian credit card, which is both in soles as in dollars. If I buy in soles, I get charged EXACTLY that amount in soles. And if I consume in Dollars I get EXACTLY charged those dollars ( even if I buy over the Internet in a foreign country ). If I buy in Euros, I see EXACTLY that Euro amount, and then converted that amount in US Dollar. So the conversion in that case from Euro -> Dollar is solemnly handled by Visa/My bank.
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Re: Using American Credit Card- Visa at restaurants- problem

Postby el conquistador » Sat Oct 01, 2011 8:14 pm

Banks tell you there's no foreign transaction fee but they just give you a very bad exchange rate.

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