Foreign ATM with or without conversion?

mettlemickey

Hi, I'm in Croatia with the Barclaycard Platinum Travel card having checked out the best options on MSE. I understand that it's always best to withdraw cash and make card payments in the local currency. Yesterday I used an ATM for the first time and it asked me if I wanted to withdraw 1000 kunas 'with conversion' or 'without conversion'. It said 'With' had a guaranteed exchange rate and 'without' did not. I was very confused and opted for 'without conversion' assuming Visa/Barclaycard just do that anyway. Did I do the right thing? Is it best to withdraw 'without conversion'?

Thanks

benjus

Yes, you did the right thing. Without conversion = withdrawing in local currency.

The ATM providers like to make it confusing as they make more money if you withdraw with conversion.

eDicky

mettlemickey wrote: »

It said 'With' had a guaranteed exchange rate and 'without' did not.

The second part is a bare-faced lie commonly employed to entice cardholders into falling for the DCC scam.

'Without Conversion' guarantees that you receive the straight VISA rate (in the case of your card). 'With Conversion' guarantees the awful rate that the ATM will give you. Well done to avoid the trap.

mettlemickey

Thanks both, much appreciated.

Doshwaster

Yes, the "guaranteed conversion rate" is a classic con which is very common on ATMs in tourist areas of Spain. It will be guaranteed - but guaranteed to be worse than your bank will charge.

zagfles

With the Barclaycard travel card it is especially important to take the "without conversion" option, because with conversion it would likely count as a sterling cash withdrawal (as BC would be charged a sterling amount).

So not only will you get ripped off by DCC, you'll also end up paying the Barclaycard sterling cash fee of £2.99/2.99%, plus immediate interest on the cash advance at 27.9% APR :eek: So could be a very costly mistake!