 TITLE: How to Avoid Foreign Transaction Fees CONTENT: Pay With the Local Currency\n---------------------------\nWhen merchants accept cards, they may ask whether you want to pay in the local currency or U.S. dollars. It may seem counterintuitive, but paying with the foreign currency is often the better option.\nMerchants (and ATM operators) can do this using a dynamic currency conversion (DCC), which lets them show you the cost in the local currency or dollars in real time. However, there's a built-in conversion fee markup that's often much higher than what the payment networks charge. Plus, even if you choose dollars, you may have to pay a foreign exchange fee because a foreign bank will process the transaction.\nYou could check the Visa and Mastercard conversion rates and markups online, and compare the rate with what the merchant will charge you. But as a general rule of thumb, using a card that doesn't charge a foreign transaction fee and choosing the local currency is the best option. END