You are at a restaurant in Paris. The waiter hands you the card terminal, and it asks: "Pay in EUR or USD?" This is the moment most travelers make a costly mistake.
The Dynamic Currency Conversion (DCC) Trap
This feature is called Dynamic Currency Conversion. It seems helpful because it shows you exactly what you will be charged in your home currency. However, the exchange rate used here is set by the merchant's bank, not yours. It is almost always terrible, often 5-7% higher than the market rate.
The Golden Rule: Pay in Local Currency
Always choose to pay in the local currency (EUR in France, JPY in Japan). This forces your home bank to do the conversion. Your home bank usually offers a rate much closer to the mid-market rate than the foreign terminal.
Know the Price Before You Pay
When you see a price tag of €50, don't just guess what that is. Use a converter on your phone to see the real cost instantly so you can stick to your budget.
Travel Budget Tool
Convert local prices to your home currency instantly.
Conclusion
Travel is expensive enough without donating extra money to foreign banks. Pay in local currency, check rates on your phone, and spend those savings on another gelato instead.