Dynamic Currency Conversion

I am really annoyed that we didn't know anything about this, we wondered why
we got such a poor rate of exchange at the ATM's in Tenerife compared to
Greece.

We have a Nationwide Flex debit card and we usually get the exchange rate of
the day and don't pay any commission, so we always keep an eye on the
Exchange rates and get the euros on a favourable day. We take a calculator
and check the transactions which were not very good.

You are presented with a screen asking if you want the transaction in euros
or GBP, I find that confusing, maybe I am thick, anyway we opted for GBP as
that's how we were paying ....big mistake. Apparently the foreign banks do
the transaction at their conversion rates and take their commission :-(

Splodge...

I suppose that is because you could either be selling GBP to buy Euros
before your hols, or selling Euros to buy GBP after your hols Pat. Does that
make sense? Hope so lol
Splodge

linedancer...

Can't quite figure that one out Splodge LOL

What happened before they brought out this DCC you put your card in the
machine keyed in how many euros you wanted and your visa bank did the
conversion, in our case Nationwide don't charge commission and we get the
exchange rate of the day, not the tourist rate, no problem with that.

Now with the DCC they have to give you a choice of whether Visa convert it
or the foreign bank which will take about 4% off you for doing so. So when
it asks you yes or no to euros or GBP's you must always say yes to euro's,
we didn't know that :-(

It's all geared up to the foreign banks making money out of us unsuspecting
Brit's.

I only just found this out on the Money Saving Experts web site today.

Parrotfish...

Thanks for that, Pat.
Very handy to remember for our Jolliday in Spain :o)

linedancer...

YW :-)
Apparently some shops and restaurants have been known to ask how you want to
pay when you present your cc . That hasn't happened to us yet, but
forewarned is forearmed.

When I think we were there for five weeks last Dec/Jan and changed all our
money at the ATM :-(