Travel expert warns of ‘scam’ that can see you fork out more money while on holiday
Izzy and Pop recommended paying in local currencies rather than your home currency while travelling abroad
A travelling couple has warned others about a common financial ‘scam’ that many experience while on holiday.
Izzy and Pop, known as @izzypop_adventures on TikTok, have been sharing their travels with the world, while giving recommendations and advice to others.
In a recent trip to Poland, the pair noticed the different prices they were offered when paying for a meal. They were offered to pay in either złoty or US dollars.
They captioned the post: “We’re so frustrated with seeing this card payment ‘question’ while travelling. You go to pay with a credit card at a bar or restaurant and the screen asks ‘do you want to pay in the local currency or your home one?’
“The question is a scam so that merchants and card issuers make more money. I don’t understand why regulators haven’t cracked down on it yet. You should ALWAYS pay in the local currency when travelling. NOT in your home currency.”
Pop explained that it was “frustrating” being offered to pay in either the local currency or their home one, the United States dollar. A recent example they experienced was at a bar in Poland, where the card machine offered them the option to pay in złoty or dollars.
Pop said: “Let’s use the example of the dinner I had last night in Poland. If I paid in my home currency, it costs $118 (£92). However, I chose to play the 421 Polish złoty which are the local currency. On my credit card statement, I see Chase (bank) processed the payment as $106.66 (£83).
“So if I chose to use my home currency, I would pay an extra $11.46.”
He continued: “The difference is the exchange rates. Chase gave me an exchange rate of 0.253 dollars per złoty, which is close to the official rate, while the rate on the card terminal was 0.28.
“This is a 10.7 per cent worse exchange rate, and the reason merchants offer this currency conversion service is because they keep part of the 10.7 per cent spread, and the company that provides the physical terminal keeps the rest.
“So the takeaway is: You should always pay in the local currency when travelling, not in your home currency.”
Their video has been viewed over a massive 1.1 million times, racking up 21,600 likes and 1,154, with many viewers sharing their own advice and experiences. Claudia said: “Revolut…that is what you gotta choose… honestly the best thing for travelling.”
Mark agreed: “Not only is this not a scam it also very well known, always pay in the local currency.”
Isabelle said: “use Revolut abroad. It’s safer bc they don’t have access to your full account. Also if you add the card to Google Pay and pay w your phone, you can even burn the card after the trip. Plus exchange 1.”
@robyharry1 said, “Always pay local currency pretty common sense when travelling,” while Alex warned, “It’s not ALWAYS cheaper to use local currency as there are still some banks that charge you a fixed fee per foreign transaction (1-2 $/€/£), so if you buy a chewing gun for $0.5, that’s significant.”
A number of banks and neo-banks in the UK offer people debit and credit cards which can be used while travelling. Some benefits allow you to pay in any currency, as well as removing hidden transaction fees, and free cash withdrawals abroad.
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