Simon Khin is a victim of a scam aimed at international travelers. He’s sure of it. While touring a Balinese coffee plantation, he bought two small tins of fresh beans for $48. He didn’t think much about that purchase until several weeks later. That’s when his Capital One statement revealed that the merchant had actually charged his credit card $4,800.
But the worst was yet to come.
Editor’s note: This updated and fact-checked article comes to you from our advocacy archives. I first reported on Khin’s travel nightmare at the coffee plantation way back in 2017!!
Question
We were in Bali on a tour of a coffee plantation and a coffee shop called “Agrowisata.” We purchased two containers of coffee beans. The total should have been no more than $48. Instead, the cashier charged $4,800 to our Capital One Visa card. I signed a receipt thinking it was for $48.
My Capital One chargeback failed because the bank said we don’t have a $48 receipt — we have a $4,800 receipt! I am outraged that Capital One rejected our credit card dispute and is not shielding us from this scam. I thought we would have some type of consumer protection. Capital One told me to deal with the merchant directly. Can you help get my money back? — Simon Khin, Seattle
Answer
When I first read your case, I was as surprised as you were at the loss of your credit card dispute. Capital One’s suggestion that you should personally negotiate your money back from what appears to be a scammer on the other side of the world is nonsensical.
The Fair Credit Billing Act (FCBA) allows credit card using consumers to dispute merchant billing errors and fraud. You assumed that Capital One would protect you against this significant “billing error ” — especially since that billing error seemed a lot like outright fraud.
But that didn’t happen.
Capital One rejects your credit card dispute
During the Capital One chargeback investigation, you tried to plead your case with the credit card giant. However, when the coffee plantation provided a signed copy of your receipt, Capital One informed you that the $4,800 bill was yours.
That signed (non-itemized) receipt, by the way, did indicate that you agreed to pay the merchant nearly 63 million Indonesian Rupiah (IDR).
At the time of your coffee bean purchase that figure converted to just over $4,800. And directly under your signature it says, “I agree to pay the above total amount…”
Yikes!
A signed receipt is strong evidence that you made a purchase at this establishment, but a common sense approach to this dilemma would be to require an itemized receipt from the merchant. After all, it is highly unlikely that even the most ardent coffee bean lover could rack up an almost $5,000 bill at the plantation’s gift shop.
But unfortunately, credit card disputes are not often adjudicated by common sense. Typically, a merchant will win a credit card dispute if it provides any evidence to support the charge — even if that evidence is completely nonsensical. (See: Vantage Travel is bankrupt. How did I lose a chargeback against it?).
You believe that the owner of the shop added zeros to the final bill post-signature. But you also admit that you may have been confused by the currency conversion and not realized that you were signing a receipt for thousands of dollars.
I contacted Capital One on your behalf. On this first go-around, no one directly responded to me. But someone did immediately call you and reiterate the status of your Capital One chargeback investigation. Your $4,800 coffee bean purchase would stand.
Where is this scammer’s itemized $4,800 receipt?
Your credit card dispute loss did not sit well with me. It’s entirely unfair that this vendor could take $4,800 of your money without proving to Capital One what you purchased.
I sent a new inquiry to Capital One and asked if someone could take a closer look at your case.
Advocating cases involving huge corporations such as a bank or a credit card company can sometimes be tricky. Finding someone in authority who is willing to “go off script” and take a more personalized look at a case can be a formidable task. I would compare it to standing in front of a giant brick wall; trying to find a tiny, hidden door to get inside and make actual human contact.
In your case, I felt strongly that if I could make that contact with the “right” someone at Capital One, that person would see it our way. So I continued to plod away to find that “someone.”
Good news: Capital One is returning your $4,800
And finally, after two months and multiple inquiries, I found an executive at Capital One who wanted to help you.
This executive agreed that because the merchant could not provide a detailed receipt or explain how you acquired such a massive bill at a coffee bean plantation, you were owed a refund of the $4,800.
We also discussed ways that consumers can protect against “mistakes” like this.
Download Capital One’s mobile app
The Mobile app is a great tool because it can provide instant purchase notifications.
In your case, had you been using the Mobile app, you would have been immediately notified of the $4,800 charge. If this charge was a simple mistake by the merchant, you would have been able to correct the problem before you even left the property.
Familiarize yourself with the local exchange rate
Before any international trip, make sure to acquaint yourself with the local currency and exchange rate. The time to figure these things out should not be after you’ve made a purchase — or worse when you’ve returned from the trip. Download an online tool like XE to check the rates in real time during your journey as well. You’ll be much better equipped to cut scammers off at the pass if you’re not caught off guard at the cashier’s stand. (Ps. Make sure you also familiarize yourself with local time zones … or you might find yourself showing up to your destination on the wrong day! )
Alert your bank and credit cards of international plans
Before you leave the country, let your bank and credit cards know of your plans. You can set purchase limits and request to receive alerts for any charge that exceeds that cap. This can prevent scammers from secretly adding extra zeros to your tab.
Don’t put your brain in vacation mode
Time and again, our team receives requests for help from travelers who let their guard down during vacation — and their bank accounts suffered because of it. From consumers who impulsively bought expensive jewelry on a cruise to ones who agreed to purchase time shares they can’t afford to travelers who signed receipts they didn’t read, we’ve seen it all here. Always maintain the same vigilance you have at home while navigating the world. Here are some things to remember:
- Don’t sign anything you didn’t read
- Don’t sign anything you don’t understand
- Don’t agree to buy anything you can’t really afford
- Don’t buy anything after having a few “free drinks”
- Don’t make any high-ticket purchases (like diamonds or long term vacation plans) unless you’ve done your research ahead of time
The bottom line
Although it’s unfortunate that this case took several months to resolve, I’m pleased that Capital One ultimately agreed to return Khin’s $4,800. This case is an example that persistence pays off. When you know you are in the right as a consumer, keep pounding on the company’s virtual “doors,” and the chances are that one will eventually open.
And, of course, if you hit a wall during your struggle, that door might just be to Consumer Rescue. Our mediation assistance is always friendly and always free!
(Michelle Couch-Friedman, founder of Consumer Rescue)
