The Core Rule: Always Choose to Be Charged in Local Currency
When using an ATM or card terminal in Europe, you will frequently see a screen asking whether you want to be billed in your home currency (such as USD, GBP, or CAD) or the local currency (EUR, CZK, PLN, HUF).
Always choose the local currency.
If you choose your home currency, the terminal owner applies Dynamic Currency Conversion (DCC). This allows the ATM operator or merchant to set their own exchange rate, which typically includes a hidden markup between 7% and 14% above the real mid-market rate. If you choose the local currency, your home bank performs the conversion at the standard Visa or Mastercard interbank rate, which is usually within 0.3% to 1% of the official rate.
Standalone Yellow-and-Blue ATMs (Euronet)
Across major tourist areas in Lisbon, Madrid, Prague, Budapest, and Kraków, you will see bright yellow-and-blue ATMs branded as Euronet. These machines are designed to extract maximum fees from foreign travelers:
- Pre-selected high cash amounts: The initial screen often shows suggested withdrawals of 10,000 CZK (€400) or 100,000 HUF (€260), encouraging travelers to pull far more cash than needed.
- Aggressive DCC prompts: The machine will warn that choosing local currency means you will not know the exact exchange rate. This prompt is intentionally misleading. Decline the conversion.
- Direct operator surcharges: Euronet often levies an extra €3 to €5 access fee on top of the currency markup.
Where to Withdraw Cash Instead
Always look for an ATM attached to a physical retail bank branch. In Portugal, use any machine marked with the Multibanco network symbol, which charges zero operator fees for international cards. In Spain, look for major bank branches like BBVA, Santander, or CaixaBank. In Central Europe, use established regional banks such as Česká spořitelna (Czechia), Erste Bank (Austria), OTP Bank (Hungary), or PKO Bank Polski (Poland).
Checking Your Bank Cards Before Departure
Before traveling, verify that your debit card does not charge foreign transaction fees. Travel cards from Charles Schwab, Wise, or Revolut eliminate foreign exchange transaction markups entirely and allow you to hold balances in multiple European currencies.