Pay In The Local Currency or Your Home Currency?

When you travel abroad and pay by credit card, you will most likely be asked the following question:

"Do you want to pay in the local currency or in your home currency?"

Which should you choose?

In my opinion, you should always pay in the Local Currency.

When you pay in the local currency, you let your bank do the conversion to your home currency. This allows you to get a consistent rate throughout all purchases.

If you choose the “home currency” option, you are subject to that specific businesses exchange rate. That rate is most likely not as favorable as the one you get from your Credit Card company and will change from business to business!

Pay in the local currency and let your bank handle the exchange rate.

(Photo taken on our honeymoon - Location: Mount Batur in Bali, Indonesia)