09 Mar 2015

A question about : Pay in euros or sterling

I'm looking to book a hotel in Finland. With the euro/Ј rate as it is, and if I get the choice, would it be better to pay in euros? I'd be using a Halifax Clarity credit card to pay.

Best answers:

  • Pay in Euroes, that way you get the official card exchange rate which is pretty much the best rate going.
    If you pay in Pounds the exchange conversion is not carried out by the credit card company but a third party company. They can pretty much set their own exchange rate.
    This link lets you see what the current exchange rate used by Mastercard is https://www.mastercard.com/global/currencyconversion/
    Check the price of the hotel in both currencies and work out which is cheaper based on the exchange rate.
  • That would seem kind of odd paying for a hotel outside the UK in UK pounds! Do many British hotels offer guests a choice of foreign currencies to pay in as I have never been offered anything but UK pounds when checking out.
  • Sorry, I didn't explain properly. It's through a hotel booker and there's the option to pay in euros or sterling.
  • And the thing to be aware of is that the retailer gets a cut of the DCC commission, so it's in their interests for them to convert the currency. VISA & Mastercard rules say they must get your consent before doing this, but the more dodgy retailers will just do it without asking you. Some even claim it's not possible to pay in the currency of the country you are in!