Why You Should Always Pay In Local Currency When Travelling
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Loading... - Sarah Kwaka
- 31 Aug 2022
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Dynamic Currency Conversion is a scam. That’s something experienced travellers have known for years now, and it seems to be an unwritten rule amongst jet setters that you should always pay in local currency whenever prompted. Paying for something abroad in your own local currency will incur unnecessary fees that can add up quite fast and leave you substantially out of pocket when you land at home base. Regardless, there still seems to be a hefty chuck of travellers – especially younger ones – that still fall for this rather nasty little trick that is used to charge travellers arbitrary amounts of money for no good reason.
And that’s understandable. Not everyone is up to scratch when it comes to travel hacks and ways to make your trip run smoother (and less expensive). Plus, it’s rather intuitive to want to pay in a currency that’s familiar to you when you’ve had a few too many drinks at a beach bar and go to use your credit card to settle the bill. You know you’ve done it before – I surely have – and there’s no shame in it. It would, however, be a bit stupid to opt to pay in local currency after you read this.
Would you like to pay in the local currency?
This question will pop up every time you go to pay for something with your credit card or debit card while abroad. Whether it’s a clothing store, a bar or a hotel restaurant, you’ve always got the choice between paying in the country’s local currency or your home country. The latter starts a process called Dynamic Currency Conversion, leaving your funds with a third-party institution to process the card payment with the merchant. The third-party institution is different to your card issuer, who would be the ones handling the normal exchange rate if you opt to pay in local currency. Read More...
