Credit Card Trap Costs Tourists Hundreds Abroad

Tourists in Europe and other destinations face potential losses due to Dynamic Currency Conversion (DCC), a practice where payment terminals offer to charge in the traveler's home currency instead of the local one. This often results in a markup of 3% to 5% due to unfavorable exchange rates.

The DCC trap has recently evolved. Many terminals now present a second screen asking customers to confirm the currency conversion. Accepting this offer, even after initially selecting the local currency, leads to the higher charges. CNN correspondent Richard Quest noted that most shoppers fall for this.

To avoid these extra costs, travelers are urged to always select payment in the local currency. This allows their own card network and bank to handle the conversion, typically at a more favorable rate. It is also crucial to actively reject any DCC offers on subsequent screens.

While DCC is common in Europe, it is also present in parts of Asia and Latin America. While the new 'second screen' tactic may not be widespread globally yet, vigilance is advised for all international travelers. Choosing correctly can lead to significant savings.