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pklim - 07.06.2017 - 20:07:46

When trying to pay by card while abroad i am often asked in the shop if want to pay in local currency (such as euro) or in aed. Would anyone know what is better for me? Thanks

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Zohair - 07.06.2017 - 21:14:54

When you travel, some restaurants, hotels and stores might give you the option to pay in AED instead of the local currency of the country that you are in. While this might seem like a better choice especially because you can see the total price in your currency, you might actually be paying more. Paying in AED outside UAE with your Bank Card can subject you to a higher processing fee + conversion rate, which means you could be paying up to 5-6% per transaction. If you pay in a currency other than AED, your bank will charge you currency conversion rate only. So you're better off paying in the local currency of that country. However, if your card doesn’t charge international transaction fees, always pay in the local currency.


Michael - 07.06.2017 - 21:26:19

Hey pklim, although there isn't really a definitive answer here as it depends on a few factors, such as card fees for paying abroad and the total amount of the spend.

You can be charged up to 6% more for every purchase made abroad in the local currency. This fee isn't shown at the time of purchase so that tasty burger in Europe just got a little more expensive when you look at your bill. The issue is down to Dynamic Currency Conversion (DCC), which sounds more fun than it really is. The service exists because people often prefer to know what they are spending in the most familiar terms. Having said that for smaller purchases the DCC fees may be lower than any card fees.

If you have the time you should research what your card fees are and the current exchange rate to determine which is best for yourself.


Abd.owaimer - 31.07.2018 - 17:38:28

Thank u all for sharing this


BASHEEROKR - 26.09.2018 - 06:32:12

Thanks Zohair and Michael


Samammu - 20.08.2019 - 02:12:02

Pay in other currency than aed which will charge you more


Vibhor_Bhatnagar - 24.01.2020 - 17:03:32

Always pay in the local currency as FX conversion charges are very high



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