Exchange-rate costs are mostly invisible: they hide in the rate, not in a line labelled “fee”. These habits keep them small wherever you go.
Should I pay in local currency or my home currency?
Pay in the local currency.
When a card terminal or ATM offers to charge you in your home currency, it is offering dynamic currency conversion at a rate it sets. Choosing the local currency leaves the conversion to your own card issuer. If you are not sure, compare the two amounts below.
Check an offer
Enter the amount the terminal or ATM offers in your home currency. Markup % = (offered ÷ (bill amount × mid-market rate) − 1) × 100. Mid-market rate: loading…
If the home-currency amount is higher than the converted local amount, the difference is the conversion markup. Your own card may also charge a foreign transaction fee, so check your card's terms.
Full tool: dynamic currency conversion checker. Daily mid-market rates are fetched in your browser. Rates By Exchange Rate API
EU rules on currency conversion at ATMs and card terminals
For card payments and ATM withdrawals that involve a currency conversion, Regulation (EU) 2019/518 requires payment service providers, and anyone offering a currency conversion at an ATM or at the point of sale, to express their total conversion charges as a percentage mark-up over the latest euro foreign exchange reference rates published by the European Central Bank, and to disclose that mark-up before you pay. (Regulation)
Before the payment, that party must also show the amount to be paid to the merchant in the merchant’s currency and the amount you will pay in your account’s currency, and tell you that you can pay in the merchant’s currency and have your own bank do the conversion instead. The information must also be given to you on a durable medium afterwards. (Regulation)
These requirements have applied since 19 April 2020. Regulation (EU) 2021/1230 later consolidated the rules: they are now in its Article 4, which covers payments in euro or another EU national currency that involve a currency conversion service. (Regulation)
These rules apply to payments denominated in euro or another EU national currency that involve a currency conversion (Regulation (EU) 2021/1230, Article 1(2)). (Regulation) They’re EU law, so don’t expect the same disclosures when you pay in yen, baht or rupiah outside the EU.
EU sources: Regulation (EU) 2019/518, Article 1(4) inserting Article 3a into Regulation (EC) No 924/2009 (EUR-Lex); Regulation (EU) 2021/1230 (codification), Articles 1 and 4 (EUR-Lex). Checked 18 Oct 2026.
Country money guides
Cash and cards in Japan · Cash and cards in Bali and Indonesia · Cash and cards in Thailand
1. Know the real rate
The mid-market rate is the benchmark. Before you change money or pay, check it in a currency converter. The gap between that and the rate you are offered is what you are really paying.
2. Always pay in the local currency
Card terminals, ATMs and some online checkouts may offer to charge you in your home currency. This is dynamic currency conversion (DCC). It looks convenient, but the rate is set by the merchant’s or ATM operator’s provider and usually includes a markup. Choose the local currency and let your card network convert it.
3. Check your card’s foreign transaction fee
Many debit and credit cards add a percentage fee to every purchase in a foreign currency. Some cards and accounts charge none. Check your card’s fee schedule before you go; a no-fee card is often the single biggest saving.
4. Use ATMs sensibly
- Your bank may charge a fee per foreign withdrawal, and the ATM owner may add its own. Fewer, larger withdrawals spread any fixed fees.
- ATMs run by banks are generally a safer bet than independent machines in tourist areas.
- Decline the ATM’s offer to convert the withdrawal for you (see DCC above).
5. Skip airport and hotel exchange desks
Exchange counters in airports and hotels tend to offer poor rates. If you want some cash on arrival, a bank ATM is usually cheaper.
6. Consider a multi-currency account
Several providers offer accounts and cards that hold multiple currencies and convert at or near the mid-market rate with a disclosed fee. They can be cheaper than a traditional bank for frequent travellers. Compare the total cost (fee plus rate) before you choose.
7. Carry a backup
Take two cards from different networks if you can, kept separately, and a small amount of cash. Card acceptance varies, and in some countries smaller shops, markets and taxis still prefer cash.
Quick answers
Should I pay in local currency or my home currency abroad?
Choose the local currency. If a card terminal or ATM offers to charge you in your home currency, that is dynamic currency conversion, and the rate it uses usually includes a markup.
What is the mid-market exchange rate?
The midpoint between the buy and sell rates on global currency markets. It is the rate you see on Google or in our converter. Banks and exchange services usually add a margin on top of it.
Is it cheaper to exchange cash before I travel?
Usually not at airports, where rates tend to be poor. A card with no foreign transaction fee, or withdrawing from a bank ATM on arrival, is usually cheaper. Compare the rate you are offered against the mid-market rate.
How can I avoid ATM fees abroad?
Use a card that refunds or does not charge foreign ATM fees, withdraw larger amounts less often to spread fixed fees, prefer ATMs run by banks, and always decline the ATM’s own currency conversion.
Related: Tipping around the world · Currency converter (daily rates)