The number of international travelers is soaring. Many travelers need different currency as they arrive in new countries. In the past, travelers using an ATM, credit or debit card were simply charged for purchases and withdrawals in whatever currency the locals used. For example, U.S. travelers to France were charged in Euros when they used their credit card in Paris.
Recently, instead of being simply charged in the local currency many travelers are being asked if they want to pay in their home currency. Companies offering the service call it “dynamic currency conversion.” For example, some U.S. travelers to France are now asked if they want to complete transactions in dollars.
The change is occurring because ATMs and credit card terminals now have the ability to check where a card was issued. Then international travelers can be asked whether they want to use their home currency for their transactions. The question seems innocuous, but agreeing to use your home currency in a foreign land can inflate the cost of every purchase. Continue reading