Credit Card Transaction - pay in Euro or local currency?

R

rabbitrun

Registered User
Messages
7
Hi,

I was buying a flight in Australia online with my Irish credit card. I was asked whether i would like to pay in Euro or Australian dollars. In Euro, the rate was set (at set at .54c AUS to €1 but its taken another beating overnight and is now .48) but if I paid in AUD then the rate wasnt set and the date of the rate wasnt set. I chose the former option.

When in the UK they ask you this as well (though about pounds obviously haha). What is the best option?

Thanks!

Rabbit
 
Thanks Douglas,

Just to clarify, the better rate would be the local rate, ie pay in Australian dollars as the Australian merchant would have a more competitive rate than the Irish bank?

Cheers!

Ruth
 
I came across this in the United States when purchasing duty free at the airport in LAX. They couldn't quote me the euro rate so I opted for dollars.

If you buy from amazon.com they helpfully convert the total into euros for you. Thankfully you can change it back to dollars again.

Can foreign merchants charge your credit card in anything other than local currency? What is this fascination with trying to make you pay in euro?
 
bond-007 said:
Can foreign merchants charge your credit card in anything other than local currency? What is this fascination with trying to make you pay in euro?
Click to expand...

Many NI retailers do this. They get an extra margin on the currency conversion. Avoid this option at all times.
 
Thanks ubiquitous, thats good to know!

I will henceforth always pay in local currency. Because they gave me a rate on the euro charge it seemed more attractive for some reason...

Rabbit.
 
The CC forex margin should be clear. www.itsyourmoney.ie lists some of the common ones. What margin a retailer might charge you locally to pay in € may well be unclear and will probably be higher. As above choose to pay in local currency and not €s converted by the retailer unless you are absolutely sure that the latter is more cost effective. And in most (all?) cases it will not be.
 
You must log in or register to reply here.
Back
Top