Just used an ATM in South Korea 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?
Yep, happened to me at Shinhan Bank near Hongdae. I selected “Accept” because it sounded like the safer route, but my N26 card was billed in euros at a poor exchange rate. DCC lets the ATM convert instead of your card and that usually means worse rates and more fees. When I used the same card but declined conversion, I saved a few euros. Now I never “accept” anything unless it’s in the local currency!
I was in Busan recently and used a Hana Bank ATM. Pressed “Accept” out of habit and regretted it when I saw my Monzo statement the KRW to GBP rate was way off. DCC makes it seem like a smart option, but it’s really letting the ATM choose the rate, which is rarely in your favor. When I selected “Decline” at a different ATM later, I got a much better deal. Always decline if your home currency shows up.
Same thing happened to me at a KB Kookmin Bank ATM in Myeongdong. I accepted thinking it meant fewer fees, but my Revolut card charged me in GBP at a really bad rate. That’s the DCC trick the ATM handles the exchange, and bakes hidden fees into the rate. When I declined at a Shinhan ATM the next day, I got a noticeably better rate. From now on, I always decline conversion, especially with travel cards.
Yes, that’s Dynamic Currency Conversion (DCC) and it’s best to avoid it. I withdrew money at a Woori Bank ATM in Seoul Station, selected “Accept,” and my Wise card later showed a terrible exchange rate, almost 6% worse than the mid-market. When you accept, the ATM does the conversion into your home currency using its own inflated rate. Always Decline Conversion and let your card provider (like Wise or Revolut) handle it for a fairer deal.