Euro's or pounds?

wenders1

When paying abroad I'm often asked if I want to pay in euro's or pounds on my credit card, which is best?

CLAPTON

euros... otherwise the exchange rate is awful

dylanuk

You should pay in the local currency whenever possible.

Otherwise, if you pay in pounds sterling abroad - it's called dynamic currency conversion and can cost you around 4% transaction charge: http://www.credit-card-comparison-online.co.uk/faq/use-abroad/dynamic-currency-conversion-charge.html

Compared to paying a 2.75% foreign fee - and even with currency conversion - it's still cheaper to pay in the local currency.

Especially more so if you have a credit card thats cheap to use abroad, i.e. waives any foreign commission fee, like Nationwide or the Post Office.

CLAPTON

dylanuk wrote: »

If your credit card is from the UK you should pay in pounds sterling if you can.

Otherwise, if you pay in any other currency (e.g. a local currency when you are abroad) - it's called dynamic currency conversion and can cost you around 4% transaction charge: http://www.credit-card-comparison-online.co.uk/faq/use-abroad/dynamic-currency-conversion-charge.html

Compared to paying a 2.75% foreign fee - and even with currency conversion - it's still cheaper to pay in pounds sterling.

Especially more so if you have a credit card thats cheap to use abroad, i.e. waives any foreign commission fee, like Nationwide or the Post Office.

I would respectfully suggest you reread the article you refer to

Its recommendations are that you pay in local currency NOT UK currency.

dylanuk

Sorry, my bad

Thanks for correcting me Eric!

Inactive

CLAPTON wrote: »

euros... otherwise the exchange rate is awful

Agreed, also if using an ATM for cash withdrawals in Spain, be very careful, they are cleverly worded to suggest that you use their bank exchange system, just remember to hit the " NO " button when asked.

nomoneytoday

If you have a Nationwide / Abbey / PO / Saga credit card then pay in euro.

If you have another card it may make sense to pay in GBP as the rates used by them have a charge of up to 3% + £1.50 on top...
The EUR rate locally will usually have a 2% charge built into the rate...

KTF

dylanuk wrote: »

Sorry, my bad

Thanks for correcting me Eric!

I would recommend you edit your original post to remove the incorrect information.

You should always pay in local currency and ask them to change it if they offer you a total in pounds.