Charge in euros or sterling?

[ian in lancs]

Recently in Spain when using a credit card I was asked whether I want to be billed in euros or sterling. E we what’s the smart answer?

[Sir Bagalot]

Always always pay in the local currency, all to do with exchange rates

[ian in lancs]

Spot rates vs day of bill rates or different bank rates?

[randlemarcus]

Local currency, you will be charged by your bank using their rates. Sterling, and you are at the whims of the merchant service, who are rarely competitive, as they don't need to be.

[ian in lancs]

Thanks! i get it now.

[LooneyTunes]

The difference can be massive (5%+) if you allow the retailer/local bank to do the fx instead of your own bank.

[4Q]

Does it really matter when you’re talking about this kind of sum? A whole £30-40 for every £1000 you spend

[CharlesElliott]

If you pay in GBP then the merchant or provider gets to set the rate which is almost certainly not a good rate - but it makes people feel better that they are paying in their home currency.

The local currency is always likely to be the best option.

[LooneyTunes]

4Q said:

Does it really matter when you’re talking about this kind of sum?

Why would you choose a sub-optimal rate if you didn’t have to?

[4Q]

LooneyTunes said:

Why would you choose a sub-optimal rate if you didn’t have to?

Because when I’m holiday the cost of a round of drinks is fairly low on my radar.

[LooneyTunes]

4Q said:

Because when I’m holiday the cost of a round of drinks is fairly low on my radar.

It is on mine too, but I’d rather have the round of drinks instead of giving it to the bank…

[dingg]

4Q said:

Does it really matter when you’re talking about this kind of sum? A whole £30-40 for every £1000 you spend

You carry on wasting money, you could be the next chancellor.....