Paying in euros at a foreign shop: who converts the currency changes the comparison
The currency choice can shift conversion to the merchant’s provider or to the card issuer. Compare amounts and charges, not just the button marked euros.
A euro amount on a payment terminal does not mean currency conversion is free. The Bank of Spain explains two options: accept the conversion offered when paying in your own currency, or pay in the merchant’s currency and let the card issuer convert it later under the contract. The practical question is who converts the money and what the final amount will be.
To illustrate the difference, consider a fictional purchase of one hundred units of a foreign currency. The merchant’s provider offers to charge 92 euros, with its charges already included. Suppose instead that the issuer’s conversion would be equivalent to ninety euros and would add 2% of that amount: the result would be 91.80 euros. The difference between these two options in the example would be twenty cents.
This calculation does not identify the best option for a real card: the amounts are invented to explain the procedure. If the charge in the second scenario were 3%, the result would become 92.70 euros and the comparison would change. Before calculating, you also need to know the base on which the charge is calculated and the exchange rate that will apply; recognising the euro symbol on screen is not enough.
A useful check is to keep the original amount, chosen currency, conversion provider and included charges separate. The Bank of Spain guide consulted is dated 3 September 2020; it is used here to explain the options, not to announce recent regulatory changes or universal tariffs. For a specific payment, consult the card’s terms and the information provided before confirming. This article focuses on payments at shops; it does not calculate additional cash-withdrawal charges.