Just Say "No" to Dynamic Currency Conversion
Frank McBride • April 23, 2026
Card issuers offer "preferential" foreign exchange rates (for themselves)
As the summer travel season approaches, this is a friendly reminder to avoid "dynamic currency conversion" (DCC) when making credit card purchases outside of your home country. DCC gives you the option of selecting a payment amount in your home currency rather than in the local currency. Typically, when presented with a credit card reader at a shop or restaurant, the touch screen will show purchase amounts in the local currency and in US dollars (for those with American credit cards) and you have the opportunity to choose.
I have been seeing these “offers” for several years now and have learned, after doing a little mental math, they are almost always a bad deal for the purchaser. When presented with a credit card reader, I always choose to pay the amount shown in local currency rather than the amount shown in US dollars.
During a recent trip, I was making purchases in Euros, Hungarian Forints, and Czech Korunas. From what I could tell, the option of paying in dollars inflated the cost of the purchases around an average of five percent (5%). Once, a card reader screen acknowledged that making the purchase in dollars added an eight percent (8%) fee. Even a credit card with a foreign transaction fee (which you should avoid using when traveling abroad) would have added only three percent (3%) to the tab.
Currency games aside, Visa and MasterCard offer reasonable exchange rates when you choose to pay in the local currency. Upon returning home, our credit card statements showed exchange rates that were quite close to market rates. It is reasonable and fair for the credit card issuers make a fraction of a percent here and there as they are performing a service and accepting currency risk (although very briefly). But, claiming to offer a “preferential” rate to pad their bottom line is disingenuous.
Because exchange rates are reasonable, using credit cards while traveling abroad is still worthwhile for a points and miles program as long as you avoid cards with foreign transaction fees. Travel oriented cards can offer 2X and 3X spending bonuses for transportation and restaurants to give you a leg up on saving money and accumulating points or miles for your next vacation.
In case you missed them, here is your "one-stop shopping" for posts from the past week. For some, recent changes with the Resy restaurant reservation platform might limit dining options when using the credit. Learn more here . Perhaps your next US domestic award flight should be booked through . . . Air France. Check out why . The Amex Platinum card might have the highest annual fee for mass marketed cards. Find out if the benefits are worth it for my household here . Hope you have a great Labor Day weekend!! We are ready to help you turn your routine credit card spending into the travel of your dreams.
A walk through one household's use of the Amex Platinum card
For some domestic flights, Air France might save transferable miles
Recent changes in the Resy reservations platform might limit use of the Amex dining credit
Changes are a mixed bag but Hyatt regulars won't be happy
Some good news in points and miles (and one warning)
A change in favor of airline passengers (for a change)
The Autograph Journey's transfer partner list grows slowly but steadily
Points and miles free up the travel budget for pilsner, paprika, and pastizzi*
I have read a great deal recently about crowding at airport lounges or even lengthy waits to get into lounges. Hartsfield-Jackson Atlanta International Airport, dominated by Delta Airlines, has eight Delta Sky Clubs (there is one in each of the airport’s seven concourses except for Concourse A which has two). Even with the wide availability of Sky Club options, many of the Atlanta locations still get crowded and can have long lines of travelers waiting to get in. Despite flying Delta through Atlanta many times in the past couple of months, Ms. Optimizer and I have avoided this problem. We have used the Fly Delta app to keep us apprised of which Sky Clubs are crowded, and which are relatively empty. Although we might prefer a Sky Club near the gate we will use for our next flight, we often use a Sky Club on an adjacent concourse if the Sky Club closest to our gate is crowded or has a line. The Atlanta International Airport has a straightforward configuration of parallel concourses starting with Concourse T, followed by Concourses A through F. These seven concourses are connected by the Plane Train. The Plane Train can transport you between adjacent concourses in about a minute. Or, if you want to get in some steps, you can walk to an adjacent concourse in about five minutes (less if you use the moving sidewalk). The walkways are below ground level and can be accessed where you get on the Plane Train. The Fly Delta app is easy to use for assessing Sky Club capacity. When you arrive in Atlanta, go to the Delta Sky Club tab (it has a cocktail glass icon) and open. It will open to a list of the Atlanta Sky Clubs and describe their status ranging from “extremely busy” to “not busy.” Even if you can get into an “extremely” busy Club, bear in might that you might be the last person who brings the Club to full capacity. We have found that a short walk to the next concourse is well worth it as a less busy club offers a better choice of seating and a more relaxed atmosphere (and less likelihood of lines at the buffet, bar, coffee machine, etc.). But, don’t forget to budget enough time to return to the concourse with your departure gate!! We are ready to help you turn your routine credit card spending into the travel of your dreams.
