janisj

>>I have never seen the exchange rate printed on my ATM slip... anywhere.<<

It will be . . . IF one falls for the 'helpful' DCC option.

Dukey1

How ,would that happen? You go to an ATM and you ask for local currency. What does DCC have to do with using an ATM?

Trophywife007

>>What does DCC have to do with using an ATM? <<

I would suppose it works on the same principle as credit card DCC. When you use your card in local currency, your bank/card company controls the exchange rate. If you agree to be charged in your home currency the place you are at -- ATM, restaurant, store, hotel, whatever -- uses whatever exchange rate they choose. I was at an ATM in Copenhagen that "offered" to convert the exchange rate to dollars for me. I think I've seen it in other places, as well.

Apologies in advance if I misread your post.

janisj

For the last 4 or 5 years many Cash Machines in Europe ask if you want the 'convenience' of having the transaction calculated in your home currency. If you click 'yes' . . . wham bam, thank you ma'am -- there's DCC for you.

Tulips

What Janisj says; the machine asks you if you want to be charged in your own local currency. Happened to my friend in London the other day too. Only then will you get an exchange rate on your ticket; a very bad exchange rate.

kerouac

This makes no sense to me. If you take 100 euros out of an ATM, you are obviously going to be debited in your own currency. There is no choice about it.

schnauzer

I was recently in Croatia and came across the ‘conversion’ message on most ATMs. It threw me a bit I have to say as I don’t normally see it. There was only one particular bank ATM that didn’t ask. Fortunately I just pressed local currency option. But it was annoying and unusually prevalent.

Traveler_Nick

What they're doing is telling you how much the exchange will be at the moment you're standing there. Instead of letting your bank do it and THEN telling you the rate.

In the old days when people weren't connected 24/7 this might have helped somebody but today if you care about the exchange rate you can check it in multiple ways.

If DCC is bad (It is) it's even worse for non US $ accounts. I've seen them offer to exchange € to US$ on a CAD$ account. That would have meant paying the exchange twice!

kerouac

Well, one of the very best things that was done in the eurozone for those of us who have our accounts here was to oblige banks to apply the same rule for every other bank in the entire eurozone as is applied in one's home country. Since France does not have any ATM fees, I am not charged an ATM fee in any other country that uses the euro. I suppose that is why I am astonished that there are still victims out there.

Traveler_Nick

It's not an ATM fee. You'll notice BNP Paribas is the bank mentioned above. Pretty French.

It's the exchange rate that's being used. Instead of letting your home bank handle the exchange the local bank does it with DCC.

kerouac

Yes, that was made clear. I was just mentioning why it is not an issue for a lot of us.

hetismij2

I too was offered DCC at an ATM in the UK earlier in the month. If you are not careful you can easily fall for it. I knew about it and refused their generous (ahem) offer.

Only once have we reluctantly accepted DCC and that was at an Indian restaurant somewhere in Washington State. I refuesed it, but they said I had to pay it they couldn't change it, and became increasingly aggressive about it, so reluctantly I accepted. It isn't uniquely a European problem.

thibaut

I got a DCC twice in Poland. First time a small amount I didn't bother. Second time I refused to sign - normally it says that you accept to use DCC. The guy pressed 'ok' for me, I flatly refused to pay including the DCC. Guy cancelled and I paid in zlotys. When I checked the one with DCC (same day for both transactions) it was a good 4% more expensive than the one I had refused. Again small amounts but I'm not there to give money freely when I can avoid it.

mdinbc

Even though I'm joining in the conversation late, I want to thank you all for enlightening me! I looked DCC up in Wikipedia and it helped to explain the process. While travelling in counties other than my own, I often use a bank machine for cash, and I don't think I've seen the option to convert right at the machine. I am now educated not to accept this convenience at the price of 2 - 3% per exchange. Not that I use a lot of cash while travelling, but now I hear that vendors will frequently have the option on their key pads for purchases as well.

I have also made the mistake of using the foreign currency exchange kiosk at the airport, and realized afterwards what a bad rate of exchange it was. Now I will order some currency at my home branch (they will order it in) at a good rate of exchange, and then use ATM's abroad if I need more cash.

Also, admittedly I have lost more money to thinking the continental breakfast was included, then realizing we paid 15 Euros each for toast and coffee.

Live and learn!

janisj

mdindc: >>Now I will order some currency at my home branch (they will order it in) at a good rate of exchange, and then use ATM's abroad if I need more cash.<<

Very few (like none that I know of) US banks will give you a good exchange. They either charge a high mark up on the exchange rate, or they use a lower rate but add on a fee. I will once in a while buy a few £ or € at home but realize that 'convenience' is costing me more than just using my ATM card after I'm in Europe. One of my banks charges $3 per foreign transaction, one charges $4 but reimburses me any fees every month, and my credit union charges $1.50. So the fees to use ATM's are insignificant and you get a much better rate.

StCirq

What janisj said - I have never seen a U.S. Bank offer a decent, never mind good, rate of exchange for foreign currency. If you just need a bit to get started, fine, but you probably won't get as good or better a rate from your bank than you will from an airport or other exchange booth.

thibaut

Same wiht European baks giving foreign notes : rate is bad and besides, we have to order them and make an appointment. Whereas I still have to see one airport without an ATM.
At least it worked for me in UK, Polnad, China, US, Brazil, Argentina. But for some people, having wads of banknotes help them sleep, so it is a good idea for them. Exchange rate will suck, but if you are a US citizen, you may consider it as a tip for the banker. No real PITA here.

Tulips

I spend 4 days in Stockholm without using cash - did not get any Swedish Krona, did not need them. Not even for the toilets in the department store, that charged for use.
In the not-too-distant future we will no longer use cash, only cards and phones.

mdinbc

janisj & StCirq
My CAD bank usually sells at 3% over exchange rate, so I don't consider this too expensive for the amount of cash needed for a trip. They do not charge to order it in, and will usually have some US cash in hand.
I will definitely keep in mind to check rates in advance when planning my next trip.

kerouac

Frankly, it is all a casino.

When I left the United States to move to France, the dollar was devalued 10% the day I left. Ouch.
Years later, when I went on holiday in Thailand, the Thai baht was devalued 20% just as I arrived and made my holiday quite good.
More recently, the drop of the British pound by about 18% has delighted all of us on the continent who go to London from time to time.

While you usually lose if you accept DCC, there are rare moments when you could actually win, but only if you are coming from or going to a country with volatile currency rates.