of Tourists Fall Victim
to This Scam
in Unnecessary
ATM Fees
in ATM Fees
on a €500 Withdraw
It's simple... Whenever the ATM asks if you'd like to convert the transaction into your home currency,
ALWAYS DENY THE CONVERSION.
While in Europe, paying a 14% currency conversion fee at the ATM might not seem significant, this unnecessary expense can easily add up to substantial amounts during your travels.
This option for paying in your home currency is called dynamic currency conversion, and it can lead to hefty fees plus overpaying for your purchases.
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As far as bank robberies go, this one is bigger, and just as fiendish, as any. It is called "dynamic currency conversion" and it is a robbery being perpetrated by banks upon the unwitting customers in their tens of thousands.
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Using an ATM overseas isn’t like withdrawing from a cash machine in the United States. If you rush to agree to terms without paying close attention, you could wind up losing hundreds of dollars on unnecessary conversion fees.
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Dynamic Currency Conversion (DCC) is a service provided by banks and payment processors that allows international credit card and debit card users to have their transaction converted to their home currency at the point of sale or withdrawal.
The average DCC rate can vary widely, and it is determined by the individual policies of each bank or ATM provider. In a study conducted by Stiftung Warentest in 2019, where testers made 330 ATM withdrawals and 132 card payments, the DCC rates were found to range from 2.6% to 12%. Since then, DCC rates have been on the rise, with reports of DCC rates as high as 14%!
While Dynamic Currency Conversion (DCC) is often maligned for its perceived high fees and poor exchange rates, calling it a "scam" isn't accurate, considering the service it provides, the fact that it’s voluntary to use, and the transparency in its use.
Dynamic Currency Conversion (DCC) is regulated under various European Union directives to safeguard consumers' interests and ensure transparency in transactions. Regulation (EU) 2015/751, which was initially introduced as EU Directive No. 2015/2366 on November 25, 2015, laid the groundwork for these regulations. It mandated DCC providers to disclose the exchange rate applied for conversion at the time of the transaction, allowing customers to make an informed decision. These rules were further clarified and consolidated in Regulation (EU) 2021/1230 of the European Parliament and of the Council, dated 14 July 2021. As per this directive, all card-based payment currency conversion charges should be indicated as a percentage mark-up over the most recent euro foreign exchange reference rates issued by the European Central Bank (ECB).
The issue of DCC regulation isn't a top priority for most governments, including the EU. Governments typically avoid it because such regulations protect foreign customers, which might disadvantage local DCC service providers.
Contrary to popular belief, using a bank's ATM does not automatically shield you from inflated exchange rates. This is a myth that needs debunking. While you might encounter slightly lower fees at these machines (11% as opposed to 14%), you're still overpaying substantially for your currency conversion. The golden rule holds: irrespective of the ATM you're using, always deny the conversion.
To avoid DCC fees, always opt to be charged in the local currency when withdrawing from an ATM or making a credit card transaction. This allows your home bank to do the conversion. Additionally, using credit cards that offer no foreign transaction fees or even certain travel debit cards can help you further avoid these costs.
Pretty much all ATMs in Europe offer Dynamic Currency Conversion. We’ve found these offers at ATMs owned by Euronet, OTP Banka, Hrvatska postanska Banka, Worldline, Cardconnect, Global Payments, Linx, Ingenico, Verifone, Atos, and many more.
Cardholder Preferred Currency (CPC), Point of Sale Currency Conversion, Local Currency Conversion, Global Choice, Currency Conversion Service, Foreign Currency Conversion, Currency Conversion Option.
It's a wise practice to always deny the currency conversion and choose to pay in Euros when using your credit or debit card in Europe. While DCC might offer the comfort of seeing your home currency on the card machine, it often comes with a hidden cost. Avoid the DCC trap, opt for the local currency, and let your bank handle the conversion to ensure you're getting the best possible rate.
Yes, Dynamic Currency Conversion (DCC) does apply to credit card transactions. When you use your credit card abroad or make an international transaction, you may be offered the choice to be billed in the local currency of the place you're visiting, or your home currency. This process is known as DCC. Choosing to be billed in your home currency often involves an additional conversion fee or markup on the exchange rate by the merchant or ATM provider. While this may provide you with immediate understanding of the cost in your home currency, it may also result in higher overall charges for the transaction.
At Deny the Conversion, our aim is to help travelers save money and avoid unnecessary fees. While DCC isn’t a scam, the added fees and poor exchange rates can result in you paying more than necessary. We believe in making every penny of your travel budget count, which is why we recommend avoiding DCC when traveling in Europe.
It’s goes by a fancy name: dynamic currency conversion. But its premise is simple: foreign merchants add a stiff markup to your bill, convert it to your home currency, then claim it benefits you. nyti.ms/2o4uVBo
TRAVEL TIP: Neve convert credit card bills to U.S dollars (DCC or dynamic currency conversion)! The exchange rate is always horrible. Was always offered DCC option in Amsterdam. Avoid it!
Would I like to pay almost a dollar more for the privilege of having this ticket priced in dollars instead of euros? No, I would not. (But this dialog is much less of a dark pattern than other “dynamic currency conversion ”pitches that I’ve seen.)
Would you pay $51 for fish & chips? Have you heard of dynamic currency conversion? In his first piece back for @globemoney - @preetbanerjee looks at why travelers should steer clear of it at all costs.
PSA prompted by a quick stop on the way home: if you're travelling and use your credit card, and if offers you an option of what currency to choose, never ever choose your home currency rate presented.
It's called dynamic currency conversion and you'll get a worse exchange rate.
So, I'm currently in #Spain after spending the last month in #Portugal. ATM fees here in Europe to withdraw cash from a #NewZealand bank debit card account via #visa symbol are 13.5% plus an additional €3.95 #ATM fee.
The total fees to withdraw €100.00 is NZD $30.95 👀💰
...and banks wonder why we hate them!
Good riddance!
#beyourownbank #crypto #cryptocurrencies $xrp $ada $algo $xlm
LMAO!
Right! I’m in Europe so it’s a 11% conversion fee plus the atm fee.
TAKE MY DAMN CREDIT CARD! Plus you can easily spend 150 € on taxis a day.
It’s hard to have THAT much cash every day.
I paid ~$100 to draw cash from an ATM in Europe.
Welcome to “Dynamic Currency Conversion”, the worst consumer experience in all of digital payments.
In my case, the ATM charged an 11% markup on my 800 euro withdrawal, netting $96 in charges.
Why does DCC exist?
The Ryanair booking flow is borderline criminal in how many tricks it throws at you. My fave is how they only let you opt out of dynamic currency conversion by clicking a box that says 'do not untick this box'.
An ATM here in Rome wants to charge 12.95% for DCC! 🤮
Never, ever, ever choose to pay in AUD, always choose the foreign currency.
Dynamic currency conversion is one of the biggest scams out there.
14.15% markup on the Mid Market rate (as well as a €3.95 fee but that's hard to avoid in Greece).
Not sure I've ever seen a higher markup than this anywhere.
The golden rule to always reject Dynamic Currency Conversion applies more than ever here!
