A flight attendant shared a simple way to ensure you get the best exchange rate when paying with a credit or debit card abroad. The airline employee posted the helpful financial tip on her TikTok account, under the username xoblonde trip.
You may have noticed that when checking out a bill abroad, the ticket machine asks you to pay in local currency or pound sterlingge.
While you may think it’s easier to pay in pounds, it can hurt you financially.
The flight attendant said: “Did you know that the exchange rate is better because of this?
“When paying for something abroad, always choose the currency of the country you are in and not the currency of your credit card.
“If you’re in Europe, use euros, if you’re in Mexico, use pesos, and so on.
“It’s going to save you money and you will not pay too much.”
She added: “As an American traveling to Europe, I would choose EUR instead of USD when I get the bill.”
If you pay in the local currency, the transaction is usually converted into pounds at your card provider’s own rate.
Castle Trust Bank said this can sometimes add up to a 7 percent fee on top of what you’re already paying.
The experts add that if you are not given the option to pay in local currency, you should request it from the merchant.
If you are paying with a card abroad, you should also check your supplier’s terms and conditions, as some may incur international charges.
As an alternative, travelers should opt for a challenger bank card.
Challenger banks such as Starling and Monzo allow customers to make card transactions abroad at the current exchange rate without being charged.