What is the best currency to pay with?

Published July 29, 2014

Many people pay more than they have to abroad.

Scandinavians are world leaders when it comes to card use abroad, and what many do not know is that they can lose large sums if they choose the wrong currency when paying.

When you are going to make a purchase abroad, you will often have the choice of whether you want to pay in kroner or a local currency. Many people scratch their heads when they get this choice and think it is easiest to pay with kroner. That can be expensive. Learn the difference between paying with kroner and local currency once and for all!

What is the difference?
If you choose kroner, it is often the store itself that sets the exchange rate. In some countries, you may also see the stores adding a commission for themselves, so-called “surcharging”.

“Watch out for the foreign exchange trap this summer. You can lose large sums if you choose to pay in Norwegian kroner. It is the stores themselves that determine the exchange rate, and then you will often be the worse for it,” says Senior Communications Adviser Stine Neverdal at Finance Norway (FNO)NO to Dinside.

A rule of thumb is that you should always choose the local currency – it is cheaper. Then you will avoid extra expenses and you will get the best rate, calculated by VISA or MasterCard. If you pay with a credit card from re:member, you will always get the best rate.

Safest with a card 
Using a card abroad is much safer than walking around with large quantities of cash, and you will have good consumer protection if something goes wrong.

It is safest to pay with a credit card rather than other types of bank cards when you shop abroad. If you use the credit card for your expenses on holiday, you can easily check whether the amounts are correct before you pay the bill when you have returned home.

Another important rule to remember is always to use a chipped card when you pay with the credit card in foreign bank terminals. A chipped card is a widespread payment solution across the world that is more secure than using a magnetic strip.

Did you know that:

…The user location is required to furnish the exchange rate. 
…You are entitled to choose whether you wish to pay in kroner or local currency. 
…When paying in kroner, the exchange rate and any surcharges will appear on the receipt.