Easyjet changes their hold bag rules

EasyJet’s new rules means that if you can pack up...

Cruises of a Lifetime You Can Actually Afford!

Whether you’re an experienced cruiser or a newbie,...

What’s Your Island IQ?

The Caribbean brings to mind azure waters and postcard-perfect...

Europe’s Coolest Cycling Tour

Terroir. Spend any time in one of the world’s...

10 Beautiful Beach Town Bargains for Fall

To tell the truth, here at Budget Travel we’ve...

8 Great Labor Day Weekend Getaways

Labor Day weekend may be just around the corner, but...

The Right—and Wrong—Way to Pay for Your Dream Trip

I’m short on cash. Should I put my vacation on...

Insiders’ Guide to the Caribbean

ST. MARTIN If there’s any complaint about this...

8 Mistakes That Will RUIN Your Weekend Getaway!

When Budget Travel asked whether it would be worth...

Upgrade Secrets from the Experts!

I have a long, transcontinental flight coming up. I...

«
»
  1. Destinations
  2. More News
  3. Featured
  4. Travel tips
  5. Trip ideas

The Right—and Wrong—Way to Pay for Your Dream Trip

I’m short on cash. Should I put my vacation on...

15 Incredible Things to Do in Iceland

The average person probably knows one of three things...

On the edge of the world: Iceland’s Westfjords

Iceland — the land of otherworldly vistas, air...

10 things Mexico does better than anywhere else

(CNN) — Icy beers, empty beaches. It’s...

Auberge du Presbytere

Price From $86 The old stone presbytery dominates the...

Upgrade Secrets from the Experts!

I have a long, transcontinental flight coming up. I...

5 Awesome & Affordable American Drives

some other elaborate, pricey conveyance, such as a...

Upgrade Secrets from the Experts!

I have a long, transcontinental flight coming up. I...

Tuscany, Castle Hotel, Car, 7 Nights, From $484

The Real Deal This land only vacation package includes...

Auberge du Presbytere

Price From $86 The old stone presbytery dominates the...

Ireland, Air, Car, 7 Nights, From $1,102

The Real Deal This vacation package gives you round-trip...

6 Charming & Affordable European Cities You Haven’t Visited Yet

BIRMINGHAM, U.K. A foodie destination in England’s...

100% Vampire-proof: Hungary’s best wine cellars

It may lie in Szepasszonyvolgy — or what locals...

Sources: Airlines warned to beware of possible shoe bombs

The U.S. government has warned airlines to pay particular...

‘Fast & Furious’ will be a ride at Universal Studios

Universal is turning Fast & Furious into a theme...

Powerful flavor: Rio’s incredible juice bars

For the first-timer, a Rio sucos, or juice bar, is...

North Korea app opens country to armchair travelers

Ten years ago, the number of Western visitors to North...

The Right—and Wrong—Way to Pay for Your Dream Trip

I’m short on cash. Should I put my vacation on...

Take a Heartland Road Trip!

His great-great-grandfather founded the town in the...

Europe’s Coolest Cycling Tour

Terroir. Spend any time in one of the world’s...

Q&A: Should I pay in local currency or pound sterling? «

Q&A: Should I pay in local currency or pound sterling?

When on holiday when paying for an item in a shop I was asked if I would like to pay in local currency or my home currency of pound sterling. Why do they ask this?

When paying by credit card abroad (or even taking money from an ATM) you may be asked how you would like to pay – in local currency or your home currency. In this case always opt to pay in the local currency. This is because if you pay in pound sterling you will be hit by DCC – Dynamic Currency Conversion. This type of conversion is notorious for offering poor rates and the merchant will apply additional fees.

Fees are often around six per cent but can be has high as 10 per cent. Over several purchases you may find your holiday costing you £100 more than you had expected.

Even if you think it is easier to track your spending when you pay in pounds consider the price you have to pay for this convenience.

Industry figures suggest that a third of UK holidaymakers use cards overseas, spending £26.4bn. The latest data from Fairfax FX reveals that 20% of card transactions overseas this year – and 24% of card spend – was subject to DCC to pay in pounds rather than local currency.

That means that a fifth of holidaymakers have been “duped” into paying up to 10% on every bill or ATM transaction.

Don’t be a statistic. Always pay in the local currency.

Destinations

Hotels

Real deals

Travel News

Travel tips

Trip ideas