Just used an ATM in Algeria and it asked me to accept or decline conversion. I chose Accept but now Im not sure if I paid extra fees. Can someone explain what this means and whats the right option?
Yes, this is the infamous dynamic currency conversion (DCC) trap. I ran into it in Tlemcen using an ATM from Banque Exterieure d’Algerie. It offered me a rate in GBP right on screen, and like you, I accepted. Later realized it cost me quite a bit extra. It’s confusing because it sounds helpful, but in reality, it’s usually worse than your bank’s rate and may include hidden fees. Now I always hit "Decline" and let my Monzo card do the conversion. Definitely a learning moment!
It happened to me in Constantine at a BNP Paribas ATM. I didn’t know what DCC was at the time, so I accepted. Later, I compared it to another withdrawal I did after choosing "Decline," and there was a clear 4-6% difference. The ATM gave me a rate in EUR, but my bank (N26) would’ve done it in DZD at a better rate if I declined. Best rule I follow now: If the ATM shows your home currency, cancel and retry or go elsewhere.
Just came back from Oran last monthused a Trust Bank ATM at Place 1er Novembre. It gave me the conversion option too. From what I’ve learned, always choose "Decline" conversion because it lets your card issuer convert the currency at their (usually better) rate. If you hit "Accept," the local ATM operator applies their own rate, and it’s never in your favor. I use a Wise debit card and comparing past withdrawals, I lost around 6% when I once accepted.
I had the same thing happen to me in Algiers, at a Societe Generale ATM near the Grande Poste. It asked if I wanted to accept conversion and I pressed yes, not fully knowing. Later realized it applied dynamic currency conversion (DCC), which means the ATM or bank sets the exchange ratenot your home bank. My Revolut statement showed a noticeably worse rate than the market one. Now I always decline conversion so my card handles it. If you accepted, you likely paid around 5-7% more.