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Credit card customers abroad 'should pay in local currency'
06 February 2008
Credit card customers abroad could benefit from opting to pay for products with their plastic in the local currency, according to one financial provider.
According to Nationwide, its customers spent £34,000 unnecessarily at four of Europe's most popular ski resorts last year because they opted to pay in sterling.
Credit card customers were stung by the practice of Dynamic Currency Conversion (DCC), which sees retailers charge their own conversion rates.
Customers are given the choice of how to pay and when they choose to pay in sterling, they end up paying at an exchange rate set by the retailer, while if they pay in the local currency they will pay their provider's rates and fees.
Nationwide claimed not to charge any fees for card use abroad but said that even customers with other credit card companies might still benefit from paying in local currencies as their bank is likely to beat the DCC rate.
Nationwide director, Jeremy Wood said: "With over 1.3 million UK people hitting the slopes last year and £34,000 being wasted in just four European ski resorts, dynamic currency conversion has the potential to affect a large number of people."
