Paying by card abroad: which exchange rate do you get?

6 October 2026 · Calcosmo editorial team

When you travel abroad and pay by card or withdraw cash, you almost never get the rate you see in the news or in our currency converter. Banks add a margin. A few simple choices keep those costs low.

The mid-market rate as a benchmark

The rate in the currency converter is the European Central Bank reference rate: a mid-market rate without any margin. That is the fairest benchmark. Compare what your bank charges against it, and work out the difference with the percentage change calculator.

What does paying abroad cost?

Common charges include:

• Foreign transaction fee: a percentage on top of the exchange rate, often 1% to 3%.
• ATM withdrawal fees from your own bank, for example a few dollars or euros per withdrawal.
• Local ATM operator fees: in some countries, the ATM owner adds a fee too.

Worked example: you withdraw 200 US dollars with a euro card. At a mid-market rate of 1.1204, that is €178.51. With a 1.5% fee you pay €181.19, plus any fixed fees. Over five withdrawals on a holiday, that quickly adds up to €20 or more.

Always choose the local currency

Card terminals and ATMs abroad often ask whether you want to pay in your home currency or the local currency. This is called dynamic currency conversion (DCC). Always choose the local currency. If you choose your home currency, the merchant or ATM sets the rate, and it is often 3% to 7% worse than your own bank’s rate.

Tips to save

• Check your card’s terms before you travel. Some cards and travel accounts charge no foreign transaction fee.
• Withdraw larger amounts less often if your bank charges a fixed fee per withdrawal.
• Pay by card where possible instead of exchanging cash.
• Avoid airport exchange desks: their rates are usually the worst.
• Don’t withdraw cash with a credit card: cash advances usually carry extra fees and interest from day one.

What is it in your currency?

Want a quick estimate on the go? At a rate around 1.12 dollars per euro, a dollar is worth about 90 euro cents. More examples in how much is 100 euros in dollars?.