Pay in euros or in your currency? The card question at the till

The question you will be asked

If you travel outside your home currency, sooner or later a card terminal or cash machine will ask whether you want to pay in the local currency or in your own. It sounds like a helpful service. Seeing the amount in pounds, francs or kroner feels reassuring when you are not sure of the exchange rate. In practice, accepting the offer often costs more.

This service is generally called dynamic currency conversion. The conversion is done by the shop's or the machine operator's payment provider, at a rate they set, rather than by your own bank.

Why local currency is usually better

When you choose the local currency, your card issuer converts the amount using its own rate, plus any foreign transaction fee in your card terms. When you choose your home currency at the terminal, the rate offered often includes a margin that can be noticeably worse. Because the amount is presented in a familiar currency, the extra cost is easy to miss.

There are exceptions, and some cards charge high foreign fees of their own. But as a general rule, choosing to pay in the local currency, euros in most of the AeroVista network, tends to be the safer option. If you are not sure, compare the rate on the screen with the rate shown in your banking app.

Watch out at cash machines

Cash machines can make the same offer, sometimes phrased as a guaranteed rate or conversion with or without a fee. Read every screen carefully, and decline the conversion if you are given the choice. Some independent cash machines in tourist areas also charge their own withdrawal fees. Using machines attached to or inside bank branches is often a better bet, but check what the screen tells you before confirming.

Take out larger amounts less often, rather than small amounts many times, if your bank charges a fixed fee for each withdrawal abroad.

Choose the right card before you go

Before travelling, look at the terms of the cards you plan to use. Some debit and credit cards and many app-based accounts charge no foreign transaction fees and use competitive exchange rates. Others add a percentage to every purchase. Having one low-fee card for spending abroad, plus a backup kept separately, is a simple way to save money and avoid being stuck if one card is blocked.

Tell your bank you are travelling if it asks for that, and make sure your app is set up so you can freeze a card or check transactions on the go.

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