Question concerning current Euro/Dollar rates and hotel/meal etc billing

It’s specific to credit card transactions, and which “end” of the transaction the conversation is done.

Basically, If you press the button for dollars it gives you a very bad exchange rate. If you press the button for the local currency the exchange rate will be the bank standard rates, which are much better.

For further info you could google “dynamic currency conversion”.

Because there is no such thing as a government regulated exchange rate. So theoretically a merchant or hotel can charge you any rate they want to convert. And they do that because someone makes money that way. The rate you see on the newspaper or online is the interbank rate that giant financial institutions use to trade with each other. That include your credit card provider.

I always seem to have one hotel or restaurant charge in dollars rather than the local currency as it was directed to do.

My recent example comes from Spain. My hotel in Chinchón charged in dollars rather than Euros, whereas the one in Alarcón in Euros. The exchange rate for the Euro charged hotel was $1.15. The exchange rate for the dollar charged hotel was $1.19. While .04 doesn’t seem like much, it totaled $5.82 extra for that one transaction. That hotel was for one night only. Had each hotel charged in dollars and was the same price (they weren’t) for the 23 days trip, that would have been an extra $133. If the rental car company and restaurants had also charged in dollars the total would have been more.

Edited: unlike Fred’s experiences, every hotel and most restaurants in Spain asked if I wanted to be charged in $ or €. I’m headed to Scotland soon so it will be interesting to see which establishments ask $ or £, or if they automatically default to £.

When it comes time to pay, don't hesitate to tell "them" you want the total you owe in Euro (if that is the local currency), regardless if you are paying cash or credit card. Let them know you don't want the total in $, pre-empt them before the $ button is hit. The clerk always tell me in German or English what it is in Euro (Austria, France, Germany), after which I hand over the cash (Germany), credit card (France, Austria...re hotel) .

Except once which was in the hostel in Vienna, if that is suppose to count, I have never been asked in a restaurant or hotel if I wanted the total owed in $. It was always Euro, except obviously in Poland and England.

I've even run into museums offering the option, but at least they don't try to sneak it past you as some hotels, restaurants and shops have in the past.

Bellivo, to your question "And now that the Euro/Dollar currency is very similar does this even matter?", think of this: the costs of running the international networks that allow travelers to use their cards (debit or credit) outside of their home country are independent of the exchange rates between the various currencies. Also, conversion always happens, even at a hypothetical "pure one to one" exchange rate, as merchant and card user have their respective bank accounts denominated in different currencies.

Thank you to all for your replies and where to look to research further. You have all been so helpful in bringing clarity.

I witnessed someone at a rental car office in Italy being offered to choose Euros or dollars for their bill, the dollars obviously being DCC.

The woman wasn't sure and another man waiting in line said "choose dollars, always go with dollars."

I just shook my head.

I didn't say anything.