Paying abroad: choosing a currency at terminals and ATMs

A payment terminal abroad asks whether you want to pay in local currency or your card’s currency. An ATM offers a “guaranteed rate” before dispensing cash. Both can be offers of dynamic currency conversion, or DCC.

The decision changes who performs the conversion and how the price is set. Choosing local currency is a useful starting point, but it does not guarantee the lowest total cost. Compare the conversion offer with your card’s terms, including charges that may apply either way.

1. What DCC changes

DCC converts a purchase or cash withdrawal into a currency presented as your card’s currency before you approve it. The merchant’s or ATM operator’s DCC provider sets the offered exchange rate. You see a converted amount instead of leaving that conversion to the card payment process.

If you choose local currency, the transaction is submitted in that currency. When conversion is needed, the card network and/or card issuer handles it according to your card’s arrangements. Your issuer may add a conversion fee or another charge under its terms.

The DCC provider does not necessarily know which balance you want to use on a multicurrency card. Check the actual currency code shown. A familiar currency, flag or symbol is not proof that the transaction will reach the intended balance without another conversion.

2. What to choose at terminals and ATMs

At a payment terminal

Read both currency codes and amounts before tapping a choice. To leave conversion to your card’s arrangements, select the local currency in which the purchase is priced. Ask the cashier to let you choose if they operate the terminal.

Buttons may say “pay in your currency,” “accept conversion” or “continue without conversion.” Colours and reassuring wording do not show which option costs less. “Without conversion” usually refers to declining the terminal’s conversion, not eliminating all conversion from the payment.

At an ATM

Separate the cash amount, the ATM access fee and the conversion offer. Declining DCC may allow the withdrawal to continue in local currency, with the ATM fee still payable. Read each screen: declining conversion and cancelling the withdrawal are different actions, although wording varies.

If the choices are unclear, cancel before final approval and consider another ATM. Do not assume that an ATM operated by a bank has no DCC or no withdrawal fee. Keep the receipt and check the completed transaction later.

3. How to compare the total cost

Look for the original local amount, the DCC amount and currency, the exchange rate, and any disclosed conversion charge or markup. “Zero commission” does not establish that conversion is free: its cost can be built into the rate.

Compare both routes in the same account currency, for the same purchase or cash amount. For local-currency payment, estimate the conversion using your issuer’s guidance or the applicable card-network calculator, then add your card’s relevant charges. An online reference rate is a benchmark, not necessarily the rate your card will receive.

• DCC route: the quoted converted amount, plus any applicable issuer charges and other fees not already included.
• Local-currency route: the estimated card-converted amount, plus applicable issuer charges and other fees not already included.

For an ATM, check whether its access fee is already inside the displayed total before adding it. Avoid counting the same charge twice. A disclosed markup percentage may use a particular benchmark; compare actual money amounts as well.

Illustrative example only, unrelated to TopSend: a purchase costs EUR 100. DCC offers USD 112. Suppose the card-converted amount would be USD 108, with a hypothetical 2% issuer fee: USD 110.16 in total. If the same 2% fee also applies to the DCC payment, that route totals USD 114.24. Different card terms or rates can change the result.

The local-currency figure may remain an estimate until processing. Applicable dates and rates depend on the issuer’s terms. DCC makes its quoted conversion amount visible upfront, but that amount is not necessarily the final account cost after separate charges.

4. Why declining DCC does not remove every fee

Your issuer may charge for foreign transactions, currency conversion or cash withdrawals. Some foreign-transaction charges depend on where the merchant or transaction is located, so paying in the card’s currency may not avoid them. Check the definition in your card’s fee schedule.

An ATM operator’s access fee is separate from DCC. A credit-card withdrawal may also be treated as a cash advance, with a fee and interest under the card agreement. Declining the ATM’s conversion does not change that classification.

For a multicurrency card, check balance-selection rules and what happens if the local-currency balance is insufficient. Having that currency available may avoid a conversion, but it does not automatically remove other charges. Before travelling, ask your issuer how purchases and withdrawals are priced with and without DCC.

5. Checklist before you confirm

1. Identify the currencies. Check the purchase or withdrawal currency and the currency actually billed to your card.
2. Read the full offer. Note both amounts, the rate, any markup and separately displayed fees.
3. Check your card terms. Include foreign-transaction, conversion and withdrawal charges where applicable.
4. Compare like with like. Use one account currency and avoid adding fees already included in a total.
5. Make your own selection. Request local currency if that is your choice; do not let someone assume consent to DCC.
6. Keep evidence. Retain the receipt and compare it with the settled transaction, not just a pending authorisation.

6. Frequently asked questions

Is local currency always cheaper?

No. DCC can include a significant markup, making local currency a sensible starting preference. But the outcome depends on both rates and your card’s charges. Compare the total rather than treating either option as universally cheaper.

Does “decline conversion” mean I cannot withdraw cash?

Not necessarily. It often declines only DCC and allows a local-currency withdrawal. Read the next screen before confirming; ATM interfaces differ.

What if DCC was selected without my agreement?

Ask the merchant to correct it before completion where possible. If already processed, keep the receipt and contact the merchant and your card issuer promptly. Explain that you did not agree to the conversion and ask about the applicable review process. A reversal or refund is not guaranteed.

Will a refund return exactly what I paid?

Not always. The refund currency, exchange-rate movements and treatment of fees can affect the amount returned. Ask how the refund will be processed and check the final credit.

Planning an international transfer as well? Visit TopSend to review current information and conditions for your intended transfer. Assess transfer costs separately from card-payment and ATM charges.