When you’re traveling in Portugal and use your debit card at an ATM or your credit card for a purchase, you might be asked if you want to process the transaction in US dollars instead of euros. While it might seem convenient to see the charge in your home currency, always choose to pay in euros. Opting for US dollars, tempting as it may appear, will almost certainly cost you more money. This is because you’re allowing the merchant’s bank to set the exchange rate, and it will not be favorable to you.
This practice is known as Dynamic Currency Conversion (DCC), and it’s a sneaky way for businesses like hotels, restaurants, and shops to increase their profits. Their staff might even encourage you to pay in dollars, unaware of or indifferent to the extra cost you’ll incur. When using your credit card, it’s wise to keep your eye on the card reader and make sure you are the one selecting the currency to avoid being pushed into DCC.
Before traveling to Portugal, it’s also a smart idea to check the foreign transaction fees associated with each of your credit cards. Some cards impose a flat fee for each international transaction, plus a percentage of the purchase amount. You might discover that one of your cards is significantly better for international use than others. Regardless, it’s always recommended to carry at least two credit cards when traveling, as one could be lost, stolen, or compromised.
For more excellent travel money tips, you can check out resources like Rick Steves’ website: https://www.ricksteves.com/travel-tips/money. While these resources are invaluable, it’s worth noting that the prevalence of DCC and ATM usage fees seems to be on the rise, making it even more important to be vigilant, especially in places like Portugal, or anywhere using the euro currency. Being informed about DCC and choosing to pay in Euro Portugal will save you money and ensure a smoother travel experience.
