Here's a guide to help you decide which is the best option for you when spending money outside the UK.
Whether you’re buying a meal in a Spanish tapas bar or withdrawing money from a cash machine in the US, you might be given the option to pay in your home currency.
This is called dynamic currency conversion (DCC). It means the amount is converted from the local currency to pounds at the point of sale.
It’s important to understand that with DCC, there are extra fees, and the exchange rate is set by the retailer or their bank. You should always have the option to pay in the local currency instead – no one should choose on your behalf.
By choosing to pay in pounds, you’ll better understand how much you’re spending because it's a currency you’re more familiar with.
If you opt for dynamic currency conversion, you should be clearly shown:
Shops, restaurants and cash machines should display this in your receipts and on screen so you can decide for yourself.
Explore: How do exchange rates work?
You may opt to spend like a local – using their currency. For example, that would mean choosing euros in Spain or dollars in the US.
When you choose to pay in the local currency, Visa or Mastercard will set the exchange rate. Your bank may also charge a fee to carry out the transaction.
Some retailers outside the UK might automatically assume you want to pay in pounds unless you say otherwise, so always check the amount before paying.
Explore: Card fees and charges outside the UK
If you have an HSBC Global Money Account, you can hold a balance in 17 foreign currencies. This allows you to convert money using the Global Money Exchange Rate before you travel or make a transaction.
You’ll see the exchange rate at the time of converting your money, so you know exactly how much you're getting in the currency you want. This means when you pay by card, no currency conversion is needed and the money will be taken from your currency balance.
If you don't have funds in the transaction currency, we’ll automatically convert money from your GBP balance in one of 2 ways:
Global Money is only available in the latest version of the HSBC UK Mobile Banking app. You’ll need to have an eligible HSBC current account. This excludes our Basic Bank Account, Appointee and MyAccount.
