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.

When using a debit or credit card abroad in 2026, you should always choose to pay in the local currency (e.g., Euros in France, Baht in Thailand) rather than your home currency. If you choose your home currency, the merchant utilizes a service called Dynamic Currency Conversion (DCC). This allows the merchant's bank to set the exchange rate, which almost always includes a hidden markup of 3% to 7% on top of the actual market rate. By selecting the local currency, you allow your own bank or card network (Visa/Mastercard) to handle the conversion, which is significantly closer to the "interbank" rate. Even if your bank charges a 1-3% foreign transaction fee, it is still cheaper than the predatory rates offered by DCC terminals. In 2026, digital banks like Wise, Revolut, and Amnis are favorites for travelers as they allow you to hold local currency balances and avoid these conversion fees entirely, ensuring you get the most value for your money.