You're at a restaurant in Tbilisi. The card machine shows two options: GEL or your home currency. It feels friendlier to see a number you understand. That feeling is exactly what the machine is selling you.
What's happening: dynamic currency conversion
Choosing your home currency activates dynamic currency conversion (DCC). Instead of your card network converting the payment at its rate, the merchant's payment provider does the conversion — and sets the rate. That rate usually includes a markup, and a share of it can go back to the merchant.
How to spot DCC
- The terminal shows two currencies and asks you to choose.
- An ATM says it can "guarantee" your conversion rate or show the amount in your currency.
- A receipt shows an exchange rate and sometimes a "markup" percentage.
- A staff member hands you the machine already showing your home currency.
The rule
Always choose the local currency. Your card network then converts at its own rate, and your bank applies whatever fee it normally charges — which you can control by choosing the right card.
In Europe the markup must be on screen
EU Regulation 2019/518 forces transparency on currency conversion in the EU:
- Since 19 April 2020, card issuers and DCC providers must express their total conversion charges as a percentage markup over the European Central Bank's latest euro reference rate, before you pay.
- Since 19 April 2021, EU card issuers must send you an electronic message (such as an app notification or email) with that markup when you first pay in another EU currency.
So on EU card terminals and ATMs, the DCC screen should show a markup percentage. Read it. It's the clearest evidence of what "paying in your home currency" costs.
Why it's not always obvious
DCC screens are designed to feel helpful: your currency, a "guaranteed" rate, no surprises later. The surprise is simply moved to now and baked into the price. Because you rarely see the alternative side by side, the cost stays invisible.
Local vs home currency
The good
- Local currency: network exchange rate
- Local currency: bank fees you already know (and can minimise)
- Local currency: you can compare against the mid-market rate later
The catch
- Home currency (DCC): rate set by the merchant's provider
- Home currency (DCC): markup built in
- Home currency (DCC): hard to compare in the moment
How to check afterwards
- Look up the rate for your transaction date on the Visa (opens in a new tab) or Mastercard (opens in a new tab) calculator.
- Compare it with the rate on your receipt or statement.
- If you were converted without being offered a choice, raise it with your card issuer. DCC is meant to be your choice, so a conversion you didn't agree to is worth disputing.
Make it a habit
Tell yourself before the trip: "Local currency, every time." It's the easiest money you'll ever save while travelling. For the full cost picture, read how foreign exchange fees actually work.