This is not a question, but "free advice". I have noticed during my European travels that Travelex ATMs (most often in Airports) and other ATMs associated with currency exchange companies will try to get you to agree to an exchange rate up front. For example, you tell it you want to withdraw €200, and it will encourage you to lock in your rate and agree to an amount in US Dollars (let's say $280). You can then click "Go ahead with conversion" or whatever the negative version is ("Proceed without conversion" or something along those lines). You will ALWAYS save money by "proceeding WITHOUT conversion". In other words, the rate that they try to get you to lock in to is padded so as to enhance their profits. If you proceed WITHOUT conversion, you will simply get the Visa or Mastercard international rates (whatever symbol is on your ATM card), which, as has been regularly noted in Rick's literature and in these fora, are among the best rates available for currency exchange. Has anyone else noticed this gimmick? To me, it seems like a fairly recent trick, but maybe I just wasn't using those particular ATMs up until very recently. In any case, beware!
Posted by
Chicago
2876 posts
It's a fairly common gimmick that you'll encounter in parts of Europe. It's called "dynamic currency conversion" or DCC for short. I've run into it in Ireland, Poland, and particularly Spain. The hotel checkout person or restaurant waiter or store clerk will ask you if you want to be charged in US dollars instead of the local currency. If you choose US dollars, you will always get an inflated exchange rate. Whenever you're given this choice, whether by human or by machine, ALWAYS choose the local currency. Your post also points up the fact that you should always use bank-owned ATM's, never those owned by non-bank vendors. You're less likely to run into DCC with a bank-owned ATM, although it can happen.
Posted by
Knoxville, TN, USA
7209 posts
Sometimes restaurants don't "ask" first...they just do it. Happened to me at the Stager Stubli in Murren Switzerland. I'd been there several times on previous occasions so I didn't think I had to read that fine print at the bottom of the receipt I signed. Just makes me mad that even quality institutions feel the need to get in on this gimmicky tourist rip-off stuff.
Posted by
Chicago
2876 posts
I talked to VISA after this happened to me last year and was told (1) they're supposed to ask; (2) if they do this without your permission, refuse to sign the receipt, make them run a credit, and then make them put it through again in the local currency.
Posted by
Mission Viejo, Calif., USA
1010 posts
I agree with the other posts. Most businesses ask you if you want to convert your charges into U.S. dollars or their own currency. Travel books always warn you to not convert it into U.S. dollars. Travelex is simply doing what all businesses seem to do. We have used Travelex for trips to Australia, Europe three times in a row and are going to use it again in a few weeks. We buy a small amount of the local currency we are going to use. Last summer we had to get four currencies. Then we load their Travelex debit cards with additional funds to be used at most any ATMs''s in the countries we have been in. We like the convenience of the Travelex store by us (Costa Mesa, Calif.) and their service. We have asked about currency at our local banks, etc. but just decided to stay with Travelex.