Credit cards: Choose the Foreign currency or USD?

Always choose the local currency.

Always pick the foreign currency or you will be subject to dynamic currency conversion which almost always is a worse deal than having your credit card company make the exchange when processing. This is a way retailers add to the profit margin hoping you will pick US dollars.

Repeat after me....

"I will always choose the local currency. I will always choose the local currency."

Be careful. Sometimes, the charge will automatically default to US dollars because of the credit card. Make sure you change it to the local currency.

I recently booked a hotel online in the local currency. However, it kept reverting to US dollars. I kept changing it back. When I got to the hotel, they charged me in US dollars. I made them do it over again in the local currency otherwise I would have lost nearly $50 in fees and poor exchange rate.

This is how it works: the card reader company sells the services of the reader to the vendor. The vendor or card reader company sets the exchange rate. It will always be worse than what your bank offers. Then the card reader company keeps the profit and the vendor gets a percentage too. It's insidious.

Thank you Bets.

so you are also saying to purchase in the foreign currency it sounds. So after choosing the foreign rate price, then my bank will convert it to USD and this will be better a better price than the USD amount being offered on the website. I think I get it now. Thank you.