Is It Better To Pay In Local Currency When Abroad? - HSBC UK (2024)

FAQs

Is It Better To Pay In Local Currency When Abroad? - HSBC UK? ›

Fees can often be high so in most cases it's cheaper to pay in the local currency. Then either Visa or Mastercard will do the currency conversion at their current rate. You should always have the right to select which currency to pay in.

To avoid currency conversion fees abroad, always choose 'local currency' whether you're withdrawing cash from an international ATM or spending on a prepaid travel money card.

Our HSBC Global Money Account might suit your needs. It comes with a debit card and there are no HSBC fees for using your card to make payments or withdraw cash outside the UK, However, other non-HSBC fees may apply.

Research shows that in most cases you can save by opting to spend in the local currency. For example, that would mean choosing euros in Spain or dollars in the US. When you choose to pay in the currency of the region or country you're visiting, Visa or Mastercard will set the exchange rate.

For other HSBC accounts, there's a fee of 2.75% for debit cards and 2.99% for credit cards.

HSBC credit cards don't charge foreign transaction fees. However, if you use your HSBC Debit Mastercard® card, you may be charged a fee for any purchases abroad. This includes international payments made online.

All of our HSBC Credit Cards have no foreign transaction fees. If you are a Premier or Jade client, you can also enjoy no foreign transaction fees on your HSBC Premier World Debit Mastercard® or HSBC Jade World Debit Mastercard® card³.

There's no need to inform us before you travel. You can let us know it's you using your card abroad by making a chip and PIN payment when you arrive. Please make sure your contact details are up to date so we can get in touch if there are any problems.

How to avoid currency conversion fees? ›

Resist the urge to buy foreign currency before your trip.

Some tourists feel like they must have euros or British pounds in their pockets when they step off the airplane, but they pay the price in bad stateside exchange rates. Wait until you arrive to withdraw money.

Choose to pay local, every time

Always choose the local currency of the country or region where you're spending money to avoid paying extra currency conversion fees. This goes for ATM transactions as well.

We offer a wide range of foreign currencies for your Travel Money needs. Order online before 14:00 and your money will be delivered to your home or chosen Full Service or Cash Service Branch the next working day. Delivery to remote locations, including the Channel Islands and Isle of Man, will take 2-3 working days.

The Chase current account charges no fees for both overseas cash withdrawals as well as overseas card transactions, as does Starling Bank. There's also the Monese pre-paid multi-currency card, which has no foreign transaction fees on its Classic and Premium plans up to set limits for cash withdrawals.

If you have an HSBC Currency Account, from 7 December you will not be charged for sending euro payments from your account (whether your account is denominated in euros or not) to other accounts in the UK or elsewhere within the EEA.

Payments made in local currency are typically processed faster than payments made in foreign currency. This is because the banks involved in the transaction don't need to convert currencies. It's more reliable.

Euros, Dollars, Pesos or Rupees – always pay in the local currency when you're using Monzo abroad, so you can get the Mastercard exchange rate, without any extra charges.