Amazon market-sterling converted before being charged to credit card

Chimichangas

I recently bought an item on amazon.co.uk and only noticed that the sterling price was converted to euro before charging to my credit card, meaning I paid a much higher rate than expected. :eek:
Is this normal? I have never seen it before? Normally I used a sterling card, but I have used a euro credit card before and it didnt happen before.


Can Amazon/Amazon marketplace/Seller get away with this?
Which one is responsible?

I will be making a complaint anyway but wanted to see what other peoples experiences are?

I agreed for a sterling price to be charged to my credit card at what ever rate the card will charge, not for a shop or Amazon to decide the rate for me without telling me in advance, at the cash register. For me that isnt normal for that to happen in a transaction like this. :mad:

foggy_lad

Chimichangas wrote: »

I recently bought an item on amazon.co.uk and only noticed that the sterling price was converted to euro before charging to my credit card, meaning I paid a much higher rate than expected. :eek:
Is this normal? I have never seen it before? Normally I used a sterling card, but I have used a euro credit card before and it didnt happen before.


Can Amazon/Amazon marketplace/Seller get away with this?
Which one is responsible?

I will be making a complaint anyway but wanted to see what other peoples experiences are?

I agreed for a sterling price to be charged to my credit card at what ever rate the card will charge, not for a shop or Amazon to decide the rate for me without telling me in advance, at the cash register. For me that isnt normal for that to happen in a transaction like this. :mad:

Amazon have their own currency converter which must be activated on your account. It is a simple couple of steps to deactivate it or just switch back to paying in sterling for each order you place using the option on the order confirmation screen.

To have missed this shows you do not pay much attention to what you are accepting and agreeing to and could be buying anything at all!

Chimichangas

foggy_lad wrote: »

Amazon have their own currency converter which must be activated on your account. It is a simple couple of steps to deactivate it or just switch back to paying in sterling for each order you place using the option on the order confirmation screen.

To have missed this shows you do not pay much attention to what you are accepting and agreeing to and could be buying anything at all!

Cheers Fogglad, is that right yeah? bejay, maybe u think u know me, but i dont think so...! It sounds like you are talking through a different orifice to your mouth?

ytpe2r5bxkn0c1

It certainly sounds like you chose to pay in sterling rather than euro. Their conversions are expensive, so it's always worth taking the little extra time to confirm your currency choice.

Chimichangas

Harvey Freezing Volt wrote: »

It certainly sounds like you chose to pay in sterling rather than euro. Their conversions are expensive, so it's always worth taking the little extra time to confirm your currency choice.

I have never heard of a choice to pay in a different currency than sterling, that is all I have ever paid in on amazon. I would never choose to pay in euro except through my card with the currency converted to euro by the bank, not through a third party.

Where could I have chosen to pay in euro?
I didnt see any option for that.

And I know I wouldnt want to pay in euro. Just charge the card direct.

daveohdave

There's an option under your account. Instead of whishting about it here, would you not go looking for it there?

Chimichangas

daveohdave wrote: »

There's an option under your account. Instead of whishting about it here, would you not go looking for it there?

Clever idea dave...! Hmm, hold on I think I did already. Didnt see it. Thanks dave. Great help. Not.


Edit. Well not a hugely great help (but you were some )...thanks though, I did find some info on it, the 4th time I went looking on the amazon site!

HeidiHeidi

It's on the right-hand side of the one of the final pages (possibly the last one) before you click "buy", along with all your item/postage subtotals.

It defaults to using Amazon's (very bad value, as you've discovered) converter, you need to deselect the converter to pay in euros.

ytpe2r5bxkn0c1

Chimichangas wrote: »

I have never heard of a choice to pay in a different currency than sterling, that is all I have ever paid in on amazon. I would never choose to pay in euro except through my card with the currency converted to euro by the bank, not through a third party.

Where could I have chosen to pay in euro?
I didnt see any option for that.

And I know I wouldnt want to pay in euro. Just charge the card direct.

I'm not going through a mock purchase right now to see but is at checkout. My wife was inadvertently asking for prices in Euro last year, so I know it's there somewhere from personal experience.

Chimichangas

HeidiHeidi wrote: »

It's on the right-hand side of the one of the final pages (possibly the last one) before you click "buy", along with all your item/postage subtotals.

It defaults to using Amazon's (very bad value, as you've discovered) converter, you need to deselect the converter to pay in euros.

So you only see it in the order process? I used the credit card before but I never saw that option. Thanks Heidi, you have been helpful.:)

But to be clear there is no way I can turn that off now, so that it doesnt come up again?
Or can I only say no to it during a purchase?

I dont understand why it hasnt been an issue before!

Chimichangas

Harvey Freezing Volt wrote: »

I'm not going through a mock purchase right now to see but is at checkout. My wife was inadvertently asking for prices in Euro last year, so I know it's there somewhere from personal experience.

Thanks Harvey Freezing Volt, I have never seen that option. I wouldnt want to go through a mock purchase either!

I looked at the printable order summary and it is all in sterling. From the little I have now found(eventually) on the currency convertor I understand that it should show on the order summary about the convertor? But it didnt...
As you can tell Im not a happy, happy bunny with amazon...

HeidiHeidi

Ì've just done a mock purchase.

When you click on "checkout" (and sign in if needs be) the "review your order" page comes up. On the right is the currency converter, it defaults to paying in Euros with the conversion done by Amazon (I said that the wrong way around in an earlier post). The conversion rate is shown there. You need to switch currency to GBP. I have to do this every time.

Did you "buy with 1 click"? There's an option to switch currency below that as well.

ytpe2r5bxkn0c1

Chimichangas wrote: »

So you only see it in the order process? I used the credit card before but I never saw that option. Thanks Heidi, you have been helpful.:)

But to be clear there is no way I can turn that off now, so that it doesnt come up again?
Or can I only say no to it during a purchase?

I dont understand why it hasnt been an issue before!

You can set your currency preference and it will hold for future purchases. Have a close look next time.

Chimichangas

HeidiHeidi wrote: »

Ì've just done a mock purchase.

When you click on "checkout" (and sign in if needs be) the "review your order" page comes up. On the right is the currency converter, it defaults to paying in Euros with the conversion done by Amazon (I said that the wrong way around in an earlier post). The conversion rate is shown there. You need to switch currency to GBP. I have to do this every time.

Did you "buy with 1 click"? There's an option to switch currency below that as well.

I dont think I did 1-click. I definitely didnt see a euro equivalent price at the time. I think I should remember that...but never seen it before. I work out the price in my head and go for it.

I have now found(eventually) there is an option through payment methods to turn on/off this currency convertor!
But I never turned it on. And currently the option is for me to turn it on, not to turn it off.

Hopefully Amazon can get back to me on it and explain how it happened!

Its all very confusing, and a little bit of a con if you ask me.
Why would anyone want the option to pay a higher exchange rate than necessary...?

dudara

@Chimichangas Please be polite in your responses to other posters.

dudara

Chimichangas

dudara wrote: »

@Chimichangas Please be polite in your responses to other posters.

dudara

I thought I was?
Also that it works both ways no?
But thanks for letting me know!

HeidiHeidi

Chimichangas wrote: »

I dont think I did 1-click. I definitely didnt see a euro equivalent price at the time. I think I should remember that...but never seen it before. I work out the price in my head and go for it.

I have now found(eventually) there is an option through payment methods to turn on/off this currency convertor!
But I never turned it on. And currently the option is for me to turn it on, not to turn it off.

Hopefully Amazon can get back to me on it and explain how it happened!

Its all very confusing, and a little bit of a con if you ask me.
Why would anyone want the option to pay a higher exchange rate than necessary...?

I'm sure they rely on people just like you who just click "pay" and don't notice the options, and make a tidy sum on over-the-top conversion rates.

You can be guaranteed that you'll have to jump through a hoop or two to properly turn it off. If you can at all (I thought you couldn't!)

ytpe2r5bxkn0c1

HeidiHeidi wrote: »

I'm sure they rely on people just like you who just click "pay" and don't notice the options, and make a tidy sum on over-the-top conversion rates.

You can be guaranteed that you'll have to jump through a hoop or two to properly turn it off. If you can at all (I thought you couldn't!)

You can of course turn it off and can do so easily - it has to be easy if I could do it!

HeidiHeidi

Harvey Freezing Volt wrote: »

You can of course turn it off and can do so easily - it has to be easy if I could do it!

So you can

I've learned something new this evening - thanks OP! Although I was just in the habit of switching currency every time, which was hardly the end of the world.

But as a general rule, if you're ever offered automatic currency conversion (for example when withdrawing foreign currency from an ATM abroad, or shopping online such as with Amazon) the advice is to decline, it's usually bad value.

former legend

I just bought something off Amazon today actually.

Their rate is €1.2976 to £1 - I bought with Mastercard who will charge me €1.2464 plus a 2% non-euro transaction fee = €1.27 so for every £100 you spend, you save about €2 by not using their converter. But it is pretty clear IMO.

delahuntv

former legend wrote: »

I just bought something off Amazon today actually.

Their rate is €1.2976 to £1 - I bought with Mastercard who will charge me €1.2464 plus a 2% non-euro transaction fee = €1.27 so for every £100 you spend, you save about €2 by not using their converter. But it is pretty clear IMO.

remember Amazon will automatically change the VAT rate to Irish rate on purchases whether you pay in sterling or euro.

So an item costing £12.00 in UK will be charged to you at £12.30

I would normally find that the amazon currency rate is very similar to that of credit cards. The extra 3% vat is what the extra is.

Fred Swanson

This post has been deleted.

former legend

delahuntv wrote: »

remember Amazon will automatically change the VAT rate to Irish rate on purchases whether you pay in sterling or euro.

So an item costing £12.00 in UK will be charged to you at £12.30

I would normally find that the amazon currency rate is very similar to that of credit cards. The extra 3% vat is what the extra is.

No, the final price quoted in sterling includes Irish VAT, the only question is what currency you pay in.

Chimichangas

well i wasn't using the Amazon currency convertor...it appears my credit card converted the currency with the extra charge, but perhaps because it is pending and not a a statement it hasn't shown up with the exchange rate used yet and currently appears as a double transaction. I expected to see the exchange rate but I will wait for the statement to double check.
thanks all for any constructive comments!

and for fog lad i dont want to appear impolite but it certainly seems we were both dumasses by jumping to the wrong assumptions lol. 😉
times like this one needs a pint to toast ones own foolishness. 😳 😊

rubadub

delahuntv wrote: »

I would normally find that the amazon currency rate is very similar to that of credit cards. The extra 3% vat is what the extra is.

Have you kept records? if you are getting the same rate I would advise looking for another CC provider.

rubadub wrote: »

I ordered some items on amazon on 30 april. Came to

-Order Total: GBP 93.48

using their currency converter it was

-Payment Total: EUR 112,43

I checked on XE at the time and it was

93.48 GBP=107.672 EUR

Of course nobody gets this and it is usually 2-3% more than this using CC or paypal so I chose to pay in sterling via CC.

My BOI mastercard statement was
93.48GBP RATE 0.8549 €109.34

So mastercard was only 1.5% more than XE
Amazon was 4.4% more
And I saved €3.09 by choosing to pay in sterling rather than use amazons converter.

My statement shows the payment on 4 May, so I wonder if it is taken on that date and if the XE rate would have been the usual 2-3% I would expect.

I have done this numerous times since and it was invariably cheaper to use CC

You can check masert card rates here, need to know bank charges too
https://www.mastercard.com/global/currencyconversion/index.html

daveohdave

It's always cheaper to use CC. The likes of Which have researched and recommended it. The VAT difference is irrelevant.

rubadub

daveohdave wrote: »

The VAT difference is irrelevant.

It can be relevant with amazon.co.uk since if you were to use parcel motel on a high cost item the 3% could be a significant saving, even accounting for the PM fees. But if it is delievered here the upside is that the Irish governement do get that 23% VAT.

Also some items might be zero vat in the UK while still 23% here.

If going the parcel motel route you might have hassle with returns.

daveohdave

I don't pay VAT to Amazon, but I'm pretty sure it's calculated on the invoice address, not the delivery address. I guess if you've added the address to your credit card that would apply, but I can't think of a reason for that bar the Play Store. As you point out, if you've done that, then your paying taxes to the UK rather than Ireland.

rubadub

daveohdave wrote: »

I don't pay VAT to Amazon, but I'm pretty sure it's calculated on the invoice address, not the delivery address.

I just did a test order there after registering my PM belfast address and it was approved and I got the UK VAT price.

I picked a dvd which was £25.87 When I went to checkout it was £26.52 for the dvd as it went to my default address, when I picked the PM address it dropped to £25.87 again, payment was the same. My invoice address was still in the republic.

There is also the advantage of no longer having the £25 minimum spend to get free postage to Ireland.

In my test the PM fees would be more than the savings.

I also tested another item, a cycling helmet, it was £41.61 but jumped to £51.18. This is since they are zero rated VAT in the UK and still 23% here. it dropped back down with the PM address.

daveohdave

What invoice address did you use?

rubadub

daveohdave wrote: »

What invoice address did you use?

it was the same as always, my home address that my CC is registered to. I went all the way in my test, confirming right up to the very end.

daveohdave

Weird. Surely VAT should be calculated on the billing address?

Pacing Mule

daveohdave wrote: »

Weird. Surely VAT should be calculated on the billing address?

Not at all. It is always on delivery address. Otherwise we would all be ordering using billing addresses from lower rated or indeed vat exempt locations.

debabyjesus

Im sure the converter makes amazon a tidy side profit and keeps the price of actual goods a bit lower so the more astute among us get better deals!

So keep using the amazon converter people I want cheaper useless gadgets and stuff.

dudara

daveohdave wrote: »

Weird. Surely VAT should be calculated on the billing address?

It's the delivery address that matters. VAT is generally based on where the goods or services are consumed.