Holiday Money Warning - Just Press No

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I've also posted this in the Current Accounts section.

http://www.guardian.co.uk/money/2008/jul/12/foreigncurrency.consumeraffairs

Millions of British holidaymakers heading to Spain this summer will be mugged at the cash machine - by the banks, not robbers. Spanish banks are introducing confusing new messages on ATMs which will direct users into pressing "yes" for something called dynamic currency conversion, known as DCC, that will nearly always leave them out of pocket.
Many tourists paying by debit or credit card will already be familiar with shop assistants in Spain asking if you would you like to pay in sterling. It sounds attractive, but Nationwide building society estimates it costs unsuspecting Brits about £5m a month. The exchange rate used is poor and the conversion fee high, with profits funnelled back to the retailer.


Now, after a pilot project by banking group Santander (which owns Abbey), DCC is coming to Spanish ATMs, and the losers will be anybody who thinks they have to press yes to obtain euros from a cash machine. When someone arrives in Spain and puts their cash card into an ATM, after requesting euros, a message will now flash up saying: "You can be charged in GBP." The screen will also include information on the mark-up, exchange rate used and commission rate. It then says: "Press yes for GBP, no for EUR".

Holidaymakers should just press no. As Nationwide (which has campaigned against DCC for several years) says: "We're disappointed to see more and more ATMs operating dynamic currency conversion after the pilot ended, as consumers could increasingly be caught out. When using a cash machine, we understand why consumers would be tempted to transact in sterling, as they'll be able to see how much money they're withdrawing in pounds rather than euros for example - however, the conversion rate used could prove to be very unattractive. Therefore, if in doubt, always opt to transact in the local currency."

The rest of the story is via the link