What Currency Should You Pay When Abroad?

 

What Currency Should You Pay When Abroad?

When abroad should I pay in local currency?

As a rule you should always opt to pay in local currency. The only time when it might be cheaper to pay in pounds is where your home bank charges a foreign transaction fee higher than the DCC charge.

Is it better to pay in local currency or USD?

So lets recap: Paying in your home currency will result in a, roughly, 3% conversion fee. However, if your card doesn’t charge international transaction fees, always pay in the local currency. You’re just throwing money away, otherwise. And of course, it’s worth checking with your credit card or bank to be sure.

Is it better to pay in euros or pounds abroad?

When you choose to pay in euros your bank or credit card company work out the currency conversion for you. If you opt to pay in the pound then this calculation, known as the dynamic currency exchange, is left up to the foreign bank, shop or restaurants bank. It means you could end up paying a much worse rate.

Is it best to pay in local currency or GBP?

When paying by credit card abroad (or even taking money from an ATM) you may be asked how you would like to pay – in local currency or your home currency. In this case always opt to pay in the local currency. This is because if you pay in pound sterling you will be hit by DCC – Dynamic Currency Conversion.

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