When you’re abroad, if you use your debit card to take out cash at an ATM or pay at a shop or restaurant, you’ll usually see the option to pay in either the local currency or in pounds.
If you choose to pay in pounds, it’ll usually end up costing you more.
‘Dynamic currency conversion’ means paying in pounds will cost you more
When you choose to pay in pounds, the shop or ATM will convert your payment using something called ‘dynamic currency conversion’ (DCC).
This means that when they convert your payment, they can choose the exchange rate they use to make the conversion.
But you can end up losing out, as the shop or ATM and their bank will usually offer you a worse exchange rate, and split the profits they make between them.
When you use Monzo, always choose to pay in the local currency
When you use your Monzo card abroad, we pass Mastercard’s exchange rate directly onto you. We don’t add any extra fees or charges when you pay with your card.
If you want to withdraw cash from ATMs abroad, you don't have to pay any fees for withdrawals made in the European Economics Area (EEA). For other countries, you can take out £200 for free every 30 days. After that, we’ll charge you 3%.
To make sure you get the Mastercard exchange rate when you’re using Monzo, always choose to pay in the local currency. This means we’ll convert your money at the Mastercard exchange rate, instead of the shop or ATM doing it at their own rates, which will usually cost you more.