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Beware of 'hidden' charges for Groupon purchases via Credit Cards

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Old 14-03-2015, 10:52 AM   #1
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Beware of 'hidden' charges for Groupon purchases via Credit Cards

Recently purchased a Groupon deal and realized that there are 'hidden extra' charges when paying by credit card. Sent them an email and this is what they reply. Buyers beware.
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Hi XXX,

Thank you for highlighting your concern to us and we apologize for any inconvenience caused.

Please be assured that Groupon only took $28 for your purchase of "Last Day! $28 for Foot Reflexology + Herbal Foot Bath + Shoulder Herbal Heat Compression at Natureland (Worth $60)" as we have verified when we checked your account XXXX .

As an international e-commerce company, our finance department is located in mainland Europe.

Because of this, local purchases may be treated as overseas transactions and you may be charged a fee out of the total purchase amount.

This transaction fee is charged by the card services (Visa/ Mastercard) for processing an overseas transaction, this is similar to using your credit card while overseas. Thus none of the extra charges is made by Groupon.

May I assure you that the amount you pay to Groupon is as stated on the deal and nothing more.

We are aware of a few financial institution such as ANZ, UOB, HSBC, CIMB, Maybank, Standard Chartered, POSB, DBS, Bank of China that may charge an additional fee for transacting with us. Another option is to link these cards to Paypal to avoid further transaction fee.

Should you require further information, may I suggest calling through to your bank to find out more.

Thank you and have a great day ahead!


Kind regards,
XXXX
Groupon Loyalty Team
Support email: support@groupon.sg
English Support No: +65 3158 8304, 9.30am- 9pm, 7 days a week
Mandarin Support No: +65 6430 3355, 9.30am- 6pm, 7 days a week

Check out our awesome deals today at Deals for up to 70% discount. Find your deal at Groupon.sg!
Like us on Facebook, www.facebook.com/groupon.singapore
Follow us on Twitter, http://twitter.com/GrouponSG
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Old 14-03-2015, 11:01 AM   #2
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u use the wrong method to pay

many thread already
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Old 14-03-2015, 11:18 AM   #3
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u use the wrong method to pay

many thread already
Thanks. Did a search and traced to a thread dated Nov 2014

http://forums.hardwarezone.com.sg/cr...n-4240148.html
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Old 14-03-2015, 01:05 PM   #4
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Nothing new. Many discussions on DCC already

http://forums.hardwarezone.com.sg/cr...032990-15.html
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Old 14-03-2015, 03:34 PM   #5
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Nothing new. Many discussions on DCC already

http://forums.hardwarezone.com.sg/cr...032990-15.html
I don't think it's considered DCC, it's more of a Cross border surcharge. I think bank charges 0.8% extra.
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Old 14-03-2015, 10:07 PM   #6
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Same here, gotten it and since never use them again.
Also watch your credit card information when using with them. The system is completely unsecured. 2 months later, my credit (which I never bring out and used only with Groupon) card get more unknown transaction !!
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Old 16-03-2015, 12:29 AM   #7
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This is how groupon earn their business by station their finances oversea when they open business locally. Smart Singapore people should avoid this business model trap practicing worldwide. Treat this as a school fee to Groupon.
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Old 16-03-2015, 08:00 AM   #8
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This is how groupon earn their business by station their finances oversea when they open business locally. Smart Singapore people should avoid this business model trap practicing worldwide. Treat this as a school fee to Groupon.
I don't know which school you came out from that taught you not to use your common sense. 0.8% cross border charge is levied by visa/MC, Groupon doesn't get a single cent from customers so how it become Groupon trying to fleece your money? Use google and find out how payment system works.
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Old 20-03-2015, 06:46 AM   #9
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I don't think it's considered DCC, it's more of a Cross border surcharge. I think bank charges 0.8% extra.
Seems like DBS call it DCC as well?

Citibank to impose new fee on Visa card payments, News, News, AsiaOne Business News

A DBS Bank spokesman said it is known as dynamic currency conversion fee, and that card firms such as Visa or MasterCard will apply the 0.8 per cent levy when transactions are performed overseas using Singdollars.
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Old 20-03-2015, 10:34 AM   #10
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Seems like DBS call it DCC as well?

Citibank to impose new fee on Visa card payments, News, News, AsiaOne Business News

A DBS Bank spokesman said it is known as dynamic currency conversion fee, and that card firms such as Visa or MasterCard will apply the 0.8 per cent levy when transactions are performed overseas using Singdollars.
Looks like a low fee DCC, usually DCC the fee is quite high.
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Old 20-03-2015, 11:20 AM   #11
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Looks like a low fee DCC, usually DCC the fee is quite high.
Oh man, you guys are talking chicken and duck to each other. Let me try to translate for you guys.

DCC is dynamic currency conversion which mean the currency is converted to your card currency at the point of charging so that you will be charged SGD on your SGD card. There is NO fees for this type of transactions in the past, now there is a 0.8% levied not because of the currency conversion but the fact that the payment processor is base in a different country. So this 0.8% affected all DCC transactions but its not known as DCC fees, its actually cross border transaction fees.

DCC itself does not carry any fees but its not recommended as the forex exchange rate is determined by merchants themselves. For example an item which cost USD100, the merchant can choose to charge you SGD150 instead of the current rate of 1.39. A merchant can also be selling a SGD150 item to you but its payment processor is base overseas thus you are levied 0.8% as Visa/MC levy the fees of 0.8% on all transactions base overseas so to MC/Visa, its all the same regardless of whether the item is listed at SGD150 or USD100 by the merchant.

Last edited by hwmook; 20-03-2015 at 11:53 AM..
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Old 20-03-2015, 02:12 PM   #12
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Wink

Oh man, you guys are talking chicken and duck to each other. Let me try to translate for you guys.

DCC is dynamic currency conversion which mean the currency is converted to your card currency at the point of charging so that you will be charged SGD on your SGD card. There is NO fees for this type of transactions in the past, now there is a 0.8% levied not because of the currency conversion but the fact that the payment processor is base in a different country. So this 0.8% affected all DCC transactions but its not known as DCC fees, its actually cross border transaction fees.

DCC itself does not carry any fees but its not recommended as the forex exchange rate is determined by merchants themselves. For example an item which cost USD100, the merchant can choose to charge you SGD150 instead of the current rate of 1.39. A merchant can also be selling a SGD150 item to you but its payment processor is base overseas thus you are levied 0.8% as Visa/MC levy the fees of 0.8% on all transactions base overseas so to MC/Visa, its all the same regardless of whether the item is listed at SGD150 or USD100 by the merchant.
if in other country buy things kenna this DCC, means no longer consider overseas spending in most cards i assume?

#newtothis #dontcallmeduckorchicken
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Old 20-03-2015, 02:40 PM   #13
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Yes. Not considered overseas spending. So you won't get the rebates for overseas spending.
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Old 21-03-2015, 11:49 AM   #14
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#dontcallmeduckorchicken
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Old 21-03-2015, 08:16 PM   #15
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This is how groupon earn their business by station their finances oversea when they open business locally. Smart Singapore people should avoid this business model trap practicing worldwide. Treat this as a school fee to Groupon.
Problem is they are on groupon.com.sg and price quote is in S$. Many people get trick with this.
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