Currency exchange issue because of refund - opinions on how to resolve?

[GoofyNewfie]

We recently PIF-ed our cruise through our TA. We didn't realize there was a problem until we saw the charge show up on our credit card. It was significantly too much. It took a while to figure out but it was discovered that DCL added a land portion to our cruise that the TA was notified of but neither notified us. The TA had to go digging to find the notification from DCL. So when we paid off the cruise, we also paid a land portion. There wasn't a problem kicking off a refund once it was discovered what happened, but as I feared, we lost out about $150 CAD due to exchange fees. If it was smaller, I wouldn't be too troubled because maybe we should have been more careful but that's not a small amount of money.

Anyone have anything like this happen to them and had a good resolution? I'm unsure who to talk to about the issue. Or even if I'm dead in water right from the beginning. Disney is who processed the credit card and issued the refund to the credit card. I believe they could have done the refund differently (using the original charge) to get Visa to handle the exchange rate differently - but I might be wrong on that for partial refunds. The TA is the one who received the notification of the added land portion but did nothing with it.

A couple other factors
- DW doesn't remember if the TA stated to us how much was outstanding. That would add more responsibility to us.
- DCL sort of had an implied reason/permission to add the land portion. It wasn't added for zero reason. We had enquired about what precruise hotels they were going to offer but since it was too early, they simply added us to a waiting list. But certainly we had never discussed costs or a definitive approval.

I'm leaning towards talking to Disney first.

 

[kiford]

I don't think you'll get anywhere with Disney. You paid an amount in the currency they requested and they refunded you the same amount in the same currency. No company has a responsibility to make you whole with due to currency exchange rate fluctuations.

 

[Adventurelawyer]

I don't think you'll get anywhere with Disney. You paid an amount in the currency they requested and they refunded you the same amount in the same currency. No company has a responsibility to make you whole with due to currency exchange rate fluctuations.

The same will be true for anyobe looking at these boards, attempting to recapture flcredit card foreign transaction fees. Disney requsts payment, you pay, done deal. The method of payment is not their choice or concern. Same for any business.

You probably need to take that up with your TA. The failure to communicate properly seems to be with them not giving you a breakdown of charges and letting you know what DCL communicated to them.

 

[grantclaire]

Did you pay with a credit card? If so they might be able to help. I had a similar problem and the CC company was able to credit me back the foreign echange fees.

 

[otten]

I think you’re probably out of luck. You can ask your TA about it but it’s essentially asking Disney to refund more than you paid because of a shift in the exchange. You won’t know unless you ask though.

If you regularly book travel in US dollars have you considered getting a US currency credit card?

 

[FigmentSpark]

That's a huge amount of money for an FX discrepancy. You don't state your numbers, but you're sure your math is right on this? Worth double checking.

First, do you think this was a TA error or a Disney error? If it's a Disney error, then I would go to them, first, but is it possible your TA had them add it, which would put the responsibility on her/him?

If you can't get any resolution from them, you might try (very soon, not after several weeks) talking with your issuer. This was a refund. Suggest that such practices smack of money laundering and you don't want to be accused of that. Talk to a supervisor, if you have to.

It's possible someone will tell you that you should have just asked for a Disney gift card or cheque, but Disney policy, like most companies - specifically to avoid money laundering, is to refund by method of purchase, so that wasn't an option for you. That might be key in your fight for this.

Good luck.

 

[MillauFr]

Sounds like your best bet is to take it up with your credit card company. They are the ones keeping any foreign exchange fees. Not Disney. If you got a refund you should be refunded any foreign exchange fees they charged. It your credit card company doesn't refund after you ask them to I would cancel the credit card and tell them why you did.

 

[MillauFr]

That's a huge amount of money for an FX discrepancy. You don't state your numbers, but you're sure your math is right on this? Worth double checking.

I think many credit card companies charge a 2% foreign currency transaction fee. If they charged $8,000 the fees would be around $160.

 

[FigmentSpark]

I think many credit card companies charge a 2% foreign currency transaction fee. If they charged $8,000 the fees would be around $160.

I agree and know nothing of their plans, because a WDW vacation can easily be that. But my impression (which could totally be wrong) was that the OP was just looking for a hotel, pre-cruise, which sounded like a lot less money.

Either way, if the OP's numbers are right, then that's a huge amount, but even if it was only $15 and not $150, then it's still the OP's money, so really frustrating when he didn't do anything wrong and didn't authorize the spend.

 

[GoofyNewfie]

I don't think you'll get anywhere with Disney. You paid an amount in the currency they requested and they refunded you the same amount in the same currency. No company has a responsibility to make you whole with due to currency exchange rate fluctuations.

This isn't (mostly) a currency exchange rate fluctuation problem as I see it. If it was just that, this problem would be much smaller and ignore-able. It's the fact that credit card companies charge use a different rate in each direction which means you'd lose money even if it was refunded within minutes. As I tentatively understand it, the better way to handle this would be to have used the original transaction to refund it, as they would have used the same rate. But instead I got a CAD->USD rate of 1.28 then a USD->CAD rate of 1.36.

If this had been me changing my mind, and asking for a refund, I would fully expect to lose money and not made whole. If the situation was more clear and, for example, Disney double charged and there were exchange fee loses, this is completely their fault and I'm sure they would be obligated to make you whole.

The same will be true for anyobe looking at these boards, attempting to recapture flcredit card foreign transaction fees. Disney requsts payment, you pay, done deal. The method of payment is not their choice or concern. Same for any business.

You probably need to take that up with your TA. The failure to communicate properly seems to be with them not giving you a breakdown of charges and letting you know what DCL communicated to them.

Thanks for the thoughts.

I think you’re probably out of luck. You can ask your TA about it but it’s essentially asking Disney to refund more than you paid because of a shift in the exchange. You won’t know unless you ask though.

If you regularly book travel in US dollars have you considered getting a US currency credit card?

I'm not necessarily asking for Disney to refund more. I am suggesting that they refunded incorrectly and therefore I'm hit with a loss. Against a charge I never agreed to.

That's a huge amount of money for an FX discrepancy. You don't state your numbers, but you're sure your math is right on this? Worth double checking.

First, do you think this was a TA error or a Disney error? If it's a Disney error, then I would go to them, first, but is it possible your TA had them add it, which would put the responsibility on her/him?

If you can't get any resolution from them, you might try (very soon, not after several weeks) talking with your issuer. This was a refund. Suggest that such practices smack of money laundering and you don't want to be accused of that. Talk to a supervisor, if you have to.

It's possible someone will tell you that you should have just asked for a Disney gift card or cheque, but Disney policy, like most companies - specifically to avoid money laundering, is to refund by method of purchase, so that wasn't an option for you. That might be key in your fight for this.

Good luck.

I didn't quote numbers as I didn't want to over-explain, but I double checked. 1928 USD was the overcharge. 1.36 was the original exchange rate. 1.28 was the refund rate. We called it in within a few days. The difference isn't the flucuation, it's that CC companies use very different rates in each direction.

1928 USD * 1.36 - 1928 USD * 1.28 = $154 CAD.

Sounds like your best bet is to take it up with your credit card company. They are the ones keeping any foreign exchange fees. Not Disney. If you got a refund you should be refunded any foreign exchange fees they charged. It your credit card company doesn't refund after you ask them to I would cancel the credit card and tell them why you did.

Thanks for the thoughts. It probably is worth it. They can also explain whether this was supposed to be handled this way.

I agree and know nothing of their plans, because a WDW vacation can easily be that. But my impression (which could totally be wrong) was that the OP was just looking for a hotel, pre-cruise, which sounded like a lot less money.

Either way, if the OP's numbers are right, then that's a huge amount, but even if it was only $15 and not $150, then it's still the OP's money, so really frustrating when he didn't do anything wrong and didn't authorize the spend.

Yes, it was just hotel. My numbers are up above.

 

[tinkerone]

Suggest that such practices smack of money laundering and you don't want to be accused of that. Talk to a supervisor, if you have to.

It's possible someone will tell you that you should have just asked for a Disney gift card or cheque, but Disney policy, like most companies - specifically to avoid money laundering, is to refund by method of purchase, so that wasn't an option for you. That might be key in your fight for this.

Good luck.

I don't think this part is a good suggestion. I would be worried that their cc would be flagged to be watched. I'm retired banker and we are trained to pay attention when the words money laundering are uttered. We know this is all innocent but the person on the other end of the phone doesn't and it would not be out of the realm of possibility to have an account monitored for a bit.
Personally op, I think you are probably out of luck unless you can get someone to do something out of 'good will' and that is a phrase you may want to use when speaking with any company you are dealing with in this matter. The thing is if the situation were reversed and you had gained money from the transaction, which could have happened, you would not call them to take back the funds and they know this. It's pretty much the luck of the draw with exchange rates. If you ask them to take a look at the situation, that your a good client, could they do something to help you for 'good will' you might get a bite. Good luck with this and keep us informed. $150 is nothing to sneeze at.

 

[FigmentSpark]

I don't think this part is a good suggestion. I would be worried that their cc would be flagged to be watched. I'm retired banker and we are trained to pay attention when the words money laundering are uttered. We know this is all innocent but the person on the other end of the phone doesn't and it would not be out of the realm of possibility to have an account monitored for a bit.
Personally op, I think you are probably out of luck unless you can get someone to do something out of 'good will' and that is a phrase you may want to use when speaking with any company you are dealing with in this matter. The thing is if the situation were reversed and you had gained money from the transaction, which could have happened, you would not call them to take back the funds and they know this. It's pretty much the luck of the draw with exchange rates. If you ask them to take a look at the situation, that your a good client, could they do something to help you for 'good will' you might get a bite. Good luck with this and keep us informed. $150 is nothing to sneeze at.

Good points. I hadn't thought of that.

@GoofyNewfie - That is a huge discrepancy and, unfortunately the reality of the banking industry. I hope you can get it resolved. Keep us informed, if you don't mind.

 

[GoofyNewfie]

So at least calling Visa yielded the way this is supposed to be handled so that people like you and me are not out money. In this sort of situation, it is supposed to be a reversal and not a refund. A reversal is intended to make you whole by completely reversing the appropriate charge as if it never happened. But unfortunately, Disney did a refund. Visa was surprised they would not use the reversal function for this and felt that they should have. They directed me to call Disney as this was their mistake.

However, I imagine as most of you would have predicted, Disney would not talk to me since a TA is involved. At least 2 hours on the phone between Visa, Disney and the TA and the TA reports that Disney says they never reverse charges, they only refund. It should not cost Disney anything to do such a charge. So because they refuse to do so, the credit cards make money off something that they provided a way to avoid - and cost us money.

So it looks like I will not get this sorted. I do plan on writing an email to DCL which will do no good I am sure, but if I can add my voice to getting them to change this, I may as well. There's no reason for people to be out money.

 

[FigmentSpark]

Wow! Thanks for reporting back. Can I say it sounds like someone at Disney is just using excuses? I would understand that statement if it was a refund due to, say port fees or some other overpayment that you had paid. But to have that policy when the charge was not authorized by you is a different thing. I guess you can't blame the CM who might not have known about your card being in a foreign currency, but I would bet there is some policy somewhere that almost never gets used, but is still there, to do a reversal instead of a refund in a case where a guest has been charged without permission.

Keep at it. They might be able to just reverse the refund and the charge and get you what you need. That wouldn't cost anyone anything, other than time.

 

[Adventurelawyer]

Thanks for the update and, if it were me, wouldn’t be letting the TA off the hook either. She (or he) caused this problem in the first place.

on a side note, stuff like this makes me less interested in TAs.