Choosing between local currency or home currency when using your cards abroad
Ben Smithson is a senior writer for TPG UK. Originally from Australia, he is the primary points and miles writer for the U.K. site.
Jan. 24, 2021
•
3 min read
Choosing between local currency or home currency when using your cards abroad
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If you've ever paid for something in person using a credit card or debit card while abroad, you may have been given the option of choosing to pay in the local currency or your own home currency. For example, if you take a USD-issued card and pay for a meal charged in euro in Italy, you'll be handed a payment machine and given the choice between paying in EUR or USD.
You may also be given this option at a cash machine/ATM. You may be encouraged by the machine to select home currency after seeing information like "Choosing home currency to lock in your rate now and avoid any currency fluctuations".
Related: How to best use cash while traveling abroad
While it may be enticing and convenient to choose that home currency then and there, you should always choose local currency and not home currency. The reason for that is that where the merchant or cash machine operator calculates a conversion rate to give you a home currency figure then and there to select, they will give you an awful rate, far below market exchange rates.
Why? Because they can pocket the difference. They can offer you any rate you want and if you accept it, they can process it at that rate and the savings they make against the market exchange rate is easy profit for them.
Always select local currency. The rate will be significantly closer to the official market rate.
If a bank teller or shop owner or waiter tries to convince you to pay using your home currency do not agree — insist on local currency. If they make this selection for you and select home instead of local currency, I would hold your ground and insist they refund the transaction and do it again allowing you to make the selection — you are well within your rights to do this as they have done something they should not have.
While they can choose whether to accept cards and which cards they can accept, they should not be manually selecting between local and home currency on your behalf.
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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Terms & restrictions apply. See rates & fees
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| 3X | Earn 3X Miles on Delta purchases and purchases made directly with hotels. |
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Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.670-850Excellent/Good
Why We Chose It
Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees