Let’s discuss a scenario that you will encounter frequently while traveling and dating abroad.
You just finished a delicious meal with your beautiful date and it’s time to pay. The server brings over the credit card terminal and swipes your card.
But then you are asked a question: “Would you like to pay in your home currency or the local currency?”
You should always choose the local currency.
Why You Should Always Select The Local Currency When Paying By Credit Card in a Foreign Country
This may seem counterintuitive, so allow me to explain.
There is going to be an FX (Foreign Exchange) transaction either way. But if you select the local currency option, you will get the best exchange rate available to your bank or credit card company.
So if you are from the United States and you are visiting Prague, you would select the Czech Koruna option because this is the local currency. Do not select U.S. Dollar!
This is an important detail that many travelers get wrong over and over. As a result, they are wasting money every time they select the wrong option.
Fortunately you are now prepared for this scenario and know to select the local currency option every time.
Final Thoughts
How you spend your money and pay for things when traveling is very important. If you routinely make the same mistake, those mistakes and costs compound with every purchase or transaction.
Likewise, good decisions also compound, but in your favor.
So I highly recommend you check out the articles on traveling with cash and how to get the best exchange rate at foreign ATMs.
Next, be sure to check out the other travel articles for more valuable tips that will save you time and money.
