I had somebody buy a raft of airline tickets in Italy on one of my credit cards. The credit card company reversed the charges, but since they were in $US and the exchange rate dropped like a stone between charge and reversal I still ended up out a hundred dollars or so.
We're still discussing who should eat the costs for that one... I'm pretty sure it's not me, the credit card company is pretty sure it's not them, and the airline has put up an impenetrable wall of incompetence by pretending not to understand what the credit card company is saying.
RickF; at least this increases the chances of somebody other than you suffering for what happened
I had this same problem with Paypal in the past. Refunds and/or credits wouldn't come out as a wash due to fluctuating exchange rates. They've changed that now though. Regardless of exchange rate, I get refunded the exact amount $CAD that was originally billed to my card.
So in your case, I'd have to say the credit card company (or perhaps more accurately the BANK associated with your credit card) needs to be on the hook for that one as they're the ones handling (ie. profiting from) the currency exchange afterall.
There's no way you should be out of pocket. The airline either deals in $US or has already accepted whatever discrepancy existed between the before and after exchange rate, so your credit card company and/or their bank needs to do the same.
