AVOID THIS When Using ATM Abroad: Dynamic Currency Conversion!

When you use the ATM or credit card abroad, you will be asked whether or not you want to be billed in your cards original currency or in the destination's local currency. For example, I am in Greece using a USD ATM card, I was asked first if I want to be billed in USD (my home currency) or in EUR (the local currency).

Often, ATMs will low-key urge you to pick your home currency by highlighting its so-called "advantages." They will use words like GUARANTEED RATE or FIXED RATE to describe the home currency, and "UNKNOWN
RATE" to describe the local currency. It's tempting because it's always comfortable to be billed in your home currency, the currency you're very familiar with.

Dynamic Currency Conversion (DCC) is bad for you because if you agree to be billed in your home currency, you’re letting them set a worse exchange rate. They also sometimes add a markup or foreign transaction admin fees.
In short, you'll be overcharged.

Once again, in most cases, decline the dynamic conversion. Always choose to be billed in the destination's local currency.

Sometimes, it's a YES/NO question: "Would you like to be billed in your card's home/domestic currency?" Choose NO or DECLINE

Sometimes, they will try to make it look like DCC is more advantageous. It will show you the conversion rate and then ask you to choose between "Proceed with Unknown Rate" and "Proceed with the Guaranteed
Rate." Wow, "guaranteed." It's an attractive word. But no, decline it. Choose the UNKNOWN RATE. Don't pick their “guaranteed" rate. It's almost always guaranteed to be bad.

Sometimes, they will insist. After you decline, it is not done yet. It will ask you again: "If you don't use our conversion, we cannot guarantee the exchange rate that will be applied. Are you sure you want to proceed without conversion?”

Yes, you're sure. Decline the conversion.

This process also goes for when paying with credit/debit cards abroad as well. Always choose the local currency.

[YouTubeChannel]

Knowing the rate is better than keeping it hidden.

[timothywong]

if it is a not guarantee rate, what rate do they use, is it still up to the bank to decide what rate to give you?