Decision regarding Local verses Home Currency.

[albatross710]

When I was withdrawing my currency at HKG last week I took a moment to consider this question when the ATM offered to process the transaction as AUD through to my 28 degrees card or as a foreign amount. I referred the question to XE app on my iPhone but the amounts looked very similar. I took a screenshot for reference.



So the offer was HGK2,000 cash for A$267.72 or to go for the unknown.

I opted to process the transaction as the foreign amount.

Back home now, I notice that the amount processed to the card as $248.18. A handy saving.


Thank you AFF!

 

[robd]

When I was withdrawing my currency at HKG last week I took a moment to consider this question when the ATM offered to process the transaction as AUD through to my 28 degrees card or as a foreign amount. I referred the question to XE app on my iPhone but the amounts looked very similar. I took a screenshot for reference.

View attachment 11072

So the offer was HGK2,000 cash for A$267.72 or to go for the unknown.

I opted to process the transaction as the foreign amount.

Back home now, I notice that the amount processed to the card as $248.18. A handy saving.


Thank you AFF!

I'm certain that it is stated in the 28 degree thread, that you should always process the transaction in the local currency.

The other day I did a transaction on Ebay US. When I went to process the payment through Paypal, it automatically converted it to AUD at around 0.98 +/- The rate of the day was around 1.03+/- As I was using my 28 degree card, I changed it to local currency and got close to the XE rate.

I've saved heaps with this card on cross rates and transaction fees.

 

[Cynicor]

This comes up every now and then. It is called DCC for dynamic currency conversion and is pretty much a ripoff. Retailers may also offer it and it is generally worse than even the worst credit card fees.

On top of this, some cards still charge an fx fee for foreign payments in AUD.