Couple Faces 30,000 Charge for Lunch in Buenos Aires: How to Avoid Scams

A seemingly ordinary lunch at a Buenos Aires restaurant turned into a financial nightmare for Seattle-based couple Alan and Terry Axelrod. After enjoying a vegetarian meal at Juan Bautista Parrilla Gaucha, they were shocked to find their credit card charged an astonishing $29,695.

Yes, you read that correctly. The couple was billed nearly $30,000 for a meal that should have cost around $29. What followed was a six-month ordeal involving disputes with their credit card company, Chase, and attempts to seek legal recourse in Argentina.

The Axelrods’ story serves as a cautionary tale for travelers everywhere. Here’s a detailed account of their experience, what they learned, and how you can protect yourself from similar scams while traveling.

In late January, the Axelrods embarked on what they hoped would be a memorable trip to Argentina. Everything went smoothly until the last day of their vacation when they decided to visit a traditional parrilla, known for its grilled meats. Despite being vegetarians, they checked the menu for suitable options and were pleased with their meal.

When it came time to settle the bill, a young server brought a portable credit card processor to their table. Terry handed over her Chase Sapphire Reserve® card, the server swiped it, and Terry signed the receipt. However, in their haste to leave, they neglected to keep a copy of the receipt—a decision they would soon regret.

The following day, back in Seattle, Terry checked their credit card statements. She was stunned to discover the exorbitant charge. What initially seemed like a simple error quickly escalated into a complex dispute when Chase informed them that the charge was valid.

Alan immediately contacted Chase, believing it to be a typo. However, the agent confirmed that the restaurant had indeed processed a $29,695 charge. Chase initiated a dispute, temporarily reversing the charge, and the couple assumed the issue would be resolved quickly.

Five weeks later, they received an email from Chase stating that the charge was valid and would be rebilled. The Axelrods were taken aback and appealed the decision, but their request was denied once again. Chase’s fraud department informed them that the restaurant had billed them for “freezer and locker meat provisions,” which was baffling, given their vegetarian diet.

Desperate for a solution, the Axelrods hired an attorney in Argentina, who requested an upfront fee of $2,500 to investigate and file criminal charges against the restaurant. Despite their efforts, the situation remained unresolved, leading them to seek help from The Points Guy (TPG).

After months of frustration, Terry reached out to TPG, sharing her story and the extensive documentation of their ordeal. The couple had faced ridicule online, with many doubting the authenticity of their experience, but they had the proof to back up their claims.

Upon reviewing the details, it became clear that the Axelrods were victims of a billing error that should have been rectified by Chase. I reached out to Chase’s executive team, detailing the couple’s struggle and expressing concern over the unnecessary legal fees they had incurred.

Chase initiated an investigation into the charge, which concluded within a week. Finally, the Axelrods received the good news: the erroneous charge was permanently reversed, along with all associated interest. While Chase did not explain why their initial disputes were denied, the couple was overjoyed to have their ordeal come to an end.

The Axelrods’ experience highlights the vulnerabilities travelers face when it comes to credit card transactions abroad. Predatory merchants often target tourists, but there are steps you can take to protect yourself.

1. Use Credit Cards with Fraud Protection: Opt for credit cards that offer robust purchase and fraud protection. Unlike debit cards, which may not provide the same level of security, credit cards often come with zero liability for unauthorized charges.

2. Monitor Your Transactions: Utilize mobile banking apps to keep an eye on your spending while traveling. Enable purchase alerts to receive instant notifications of any charges on your account.

3. Be Cautious with Currency Conversions: Familiarize yourself with local currency and use a currency converter app to avoid falling victim to unfavorable exchange rates. Decline dynamic currency conversion offers, as your bank will typically provide the best rates.

4. Retain Receipts: Keep all credit card and ATM receipts until you can verify that they match your account statements. This will help you identify any discrepancies quickly.

5. Educate Yourself on Local Scams: Research common scams in your destination before you travel. Awareness is key to avoiding potential pitfalls.

The Axelrods’ six-month ordeal serves as a reminder of the importance of vigilance when traveling. Credit card companies are required by the Fair Credit Billing Act to investigate disputes thoroughly, and consumers should never have to pay legal fees to resolve billing errors.

If you ever find yourself facing a similar situation, consider reaching out for help. Whether it’s contacting consumer advocacy groups or utilizing services like TPG, you don’t have to navigate these challenges alone.

The Points Guy believes that credit cards can enhance your travel experience, helping you leverage everyday spending for rewards and experiences that might otherwise be out of reach. However, it’s essential to be informed and proactive in protecting yourself while traveling. If you encounter a significant charge for something you didn’t purchase, don’t hesitate to seek assistance. You can reach out to ombudsman@thepointsguy.com, and I’ll be glad to help you navigate the complexities of your situation.