Credit cards In Europe

Euros!

Here's why to carefully avoid that DCC (Dynamic Currency Conversion).

No matter here in the world you are, ALWAYS choose the local currency if asked. And verify the charge you are about to sign actually is in local currency. If not refuse to sign. No matter how much they might complain, just walk away if they can't make the machine display in local currency. Or pay cash instead.

Why? This is something the major credit card companies came up with a few years ago where they allow the merchant to select what exchange rate to bill you at to provide you with the "convenience" of seeing the amount you will see on your credit card bill when you get it. But it is no "convenience" to you as the merchant can charge you whatever they want -- and it is always a rate that makes them extra money. If you choose local currency, the credit card networks choose the rate which is always the most favorable to you. And to make it worse, if your credit card company charges you international transaction fees, you pay those on top of it! Not a good deal for you. Finally, what appears on your credit card bill is always in dollars anyway because your bank will get billed by the network in dollars (there should be a note on each transaction showing what currency and rate it was for your reference).

Always, always, always complete transactions in the local currency. For the "convenience" of doing the transaction in US dollars (or whatever your home currency is), you'll be paying for it. The merchant and merchant's processor get to choose the conversion rate, rather than the interbank rate used by all the banks (which is essentially the rate you see when you look it up online). And it does nothing to avoid fees your own bank might charge for foreign transaction fees.

Technically, as you allude to, you should be asked before a merchant processes a transaction in anything other than local currency. Sometimes they do not - if you notice a transaction in your own currency, just decline it and tell them to reprocess it. They must do so by law.

Not all places/merchants offer DCC. You might never experience it, while in some places, like Spain, it is very common.

ALWAYS pay in the LOCAL currency!

Where did you read a view contrary to the above advice?

There are NO 'different views' on this; there is no situation in which it is better for the customer to use. dynamic conversion or charge in the home currency. Essentially you pay for international exchange twice when you do this rather than once. it is a total rip off. It is fairly common for this to be pushed in Spain; the will do it and you have insist they bill in Euros. Other places we sometimes have the 'option' -- never do this.

Yes, another vote for always in local currency. I've seen this all over, mostly at restaurants but also at other shops and ATMs. I was asked at the big Printemps (buying a sweater) last trip to Paris.

If you choose dollars, they'll add an exchange to your transaction. Worse, your bank still charges, so you pay twice. Anytime you're asked, say "local currency" (not always euros, sometimes pounds, kroner, rubles, etc.).

I've had occasions when a restaurant/merchant has assumed that we would want to pay in dollars. I try to remember to tell them when I had them the card that I want to pay in the local currency.

They don't 'assume it' -- it is a hose job on the unwary. You don't pay in dollars; you pay in their inflated exchange and they your bank charges you to change Euros (or other local cash) to dollars a second time. It is a way for them to overcharge you and they know it and that is why they do it.

Of course do it in euros. But if it's France you're talking about (that's the heading of this forum), you may never have to deal with the issue. I just returned from 2 1/2 weeks in France, and with approximately 20-25 cc transactions (hotels, restaurants, wineries, food shops, etc), I never encountered the DCC option. On the other hand, every time I used my debit card at an ATM I was given the DCC option.

We have not encountered it in France either. It is VERY standard in Spain and you really have to watch out for it there. And we have faced it on occasion in Eastern Europe and Italy.

I just encountered it at an ATM in Paris; I just checked the receipt, and it was BNP Paribas.

Sometimes they ask in a straightforward way, but other times it's a bit hidden. For instance, at the ATM, they gave me an exchange rate, and asked if I wanted to accept it. I had to say "no" to get the transaction in euros.

In Switzerland, it was common, but also very easy to spot; on the credit card machine, you push 1 for USD and 2 for CHF (or maybe the other way around, but it was standardized and transparent).

Like Bruce, I'm curious. Where have you seen anyone, anywhere, say that you should NOT process the transaction in local currency? Certainly not on this forum! Unlike certain contentious subjects (moneybelts, checking luggage, Airbnb, getting local currency in advance, etc), I'm not aware of any controversy on this one!

As I mentioned, Harold, I encountered DCC everytime I used an ATM in France during our recent trip. The first time it happened I was taken aback for a moment, because I saw this horrible exchange rate appear on the screen. Then I realized what it was: DCC. And I looked to the left side of the screen and saw what I expected -- euros. Every subsequent ATM transaction was the same -- side by side options on the screen.