Paying by card abroad: local currency or your own?

You are abroad, you tap your card, and the terminal asks: pay in local currency or in your home currency? The second option feels easier because you see an amount you recognise, but it is often the more expensive one. Understanding the difference takes two minutes and can save you a charge nobody explains.

What dynamic currency conversion is

The merchant converts, not your bank

If you choose your home currency, the terminal or merchant does the conversion at its own exchange rate, which usually includes a margin. If you choose the local currency, your card does the conversion at the payment network's rate, plus whatever fees your bank applies.

Why it is offered

It earns money for whoever provides it. That is why staff sometimes present it as a convenience when, in practice, the rate is usually less favourable.

How to choose without mistakes

General rule: pay in local currency

In most cases it is better to choose the currency of the country you are in. Before travelling, ask your bank which fees or surcharges apply to foreign purchases, because they vary by bank and card.

The same goes for ATMs and online bookings

ATMs may offer to 'accept the conversion'; declining it is usually the better option. And if you book a hotel online, check which currency the final charge is made in before you confirm.

Keep the receipt

Keep the slip or a screenshot of the amount. If your card statement later does not match what you saw, you have something concrete to dispute.

A simpler way to check your trip

To see at a glance which charges on your trip may differ from what you expect, upload your bookings to AuditorTravel: it compares amounts and flags with a simple traffic light (🟢 🟡 🔴) what deserves a second look.

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AuditorTravel is an automated information tool; use it as a guide. The final decision is always yours.