Is this conversion charge fair?

By THIS IS MONEY
Updated:

 

I booked a hotel room in Sydney, Australia, and paid using my Lloyds TSB Trustcard Mastercard. The cost was $1,200, which should have worked out at £593, according to an online currency converter.

Sydney Opera House

When I checked my credit card statement it was £838 - the bank had added £245 for commission and exchange rate which amounts to a 42% charge. I'd like to know if this is acceptable. J.W., Staffordshire

Simon Moon from This is Money replies: This all happened in May. You used your Lloyds TSB credit card to book a room online with hotel reservation company Priceline.co.uk. This was charged at $1,206, which appeared on your credit card statement as £838, including the bank's 2.95% fee.

You had used an online currency converter to check the cost and expected to pay £593 so the extra £245 came as a shock.

An investigation by Lloyds shows the transaction was charged by the hotel in US dollars rather than Australian dollars despite your assertion that the website quoted the price of the booking in Australian dollars.

Just why this happened is a puzzle. When I looked at Sydney hotels advertised on Priceline the prices were clearly marked in local currency.

Your beef now is with the hotel rather than Lloyds who tell me you have accepted their explanation, which is backed up by the invoice from the hotel.

If you cannot get satisfaction from the hotel, call Priceline on 0870 870 4337 and ask them to intervene on your behalf.

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