While on holiday in Europe I paid for a gift by credit card - how can they charge me more than the actual price?

Q While on holiday in Greece I bought a vase from a tourist shop using my credit card. When I got home I found that instead of paying a 100 euros for this (about £72), I had been charged in pounds sterling and the cost was £85.24. How can they charge me more than the actual price?

A When using the credit card overseas there are two ways of paying at the point of sale - in local currency, or in your own home currency (i.e punds sterling). If you are are on holiday in Europe and paying euros the amount you spend is converted into pounds by your credit card company, using an exchange rate that will usually be reasonably competitive.

However, transactions that are immediately converted into pounds sterling may leave you facing a poorer rate of exchange than if the transaction was carried out in the local currency, and later exchanged at your card provider's rate of exchange

It is suggested that tourists should be given the choice of which currency they want to pay in. However, futher problems can crop up if this is this choice is not offered. And, as in your case, people sometimes do not realise they have been charged a pricey exchange rate until they get home.

When using a credit card in Europe, study your receipts carefully to ensure the transaction has been processed according to your wishes at the time. If you discover that has not happened, contact the card issueras soon as possibleand put in writing that you were not given the choice.

For further advice on European cross-border consumer issues visit

www.euroconsumer.org.uk or visit the hereforadvice directory and search for consumer affairs.