How do you avoid dynamic currency conversion?

Avoiding Dynamic Currency Conversion for Savvy Travelers

When traveling abroad, it’s crucial to be aware of dynamic currency conversion (DCC) to maximize your travel budget. DCC is a service offered at ATMs and point-of-sale terminals that allows you to pay in your home currency instead of the local currency. However, this convenience comes at a significant cost.

Why DCC is Costly

DCC uses an unfavorable exchange rate, resulting in higher transaction fees and a less favorable exchange rate compared to paying directly in the local currency. Studies have shown that DCC can incur additional charges of up to 5%.

How to Avoid DCC

To ensure you avoid the pitfalls of DCC, follow these simple steps:

• Pay in the Local Currency: Whenever possible, opt to pay directly in the local currency. ATMs and point-of-sale terminals will usually provide this option.
• Decline DCC Offers: Politely decline any offers for DCC at ATMs or point-of-sale terminals. Remember, the best exchange rates are typically found when paying in the local currency.
• Use a Currency Converter App: Stay informed about exchange rates by using a currency converter app on your smartphone. This way, you can compare the offered DCC rate with the real-time exchange rate and make an informed decision.

By adhering to these guidelines, you can save money and maximize your travel budget when venturing abroad. Remember, paying in the local currency and avoiding DCC will ensure you get the most favorable exchange rates and avoid hidden fees.