ATMs in Nepal keep asking With or Without Conversion - what is this DCC?

Stayed at a budget hostel in Thamel and used a Nabil Bank ATM nearby. It asked With or Without. I hit Without, and my Capital One card billed me cleanly in rupees. At the hostel bar, another traveler from Germany complained about losing €20 at Himalayan Bank by hitting With Conversion. Later on the Annapurna trek, everyone had the same advice: always Without Conversion in Nepal. The machines make it look safe, but it’s just a way to skim money off tourists.

Nepal’s ATMs really push DCC hard, especially Nabil Bank and Himalayan Bank machines. Always press Without Conversion. That way, your withdrawal is billed in NPR and converted by your card issuer. Even if your bank charges a 2-3% international fee, that’s still cheaper than the hidden markup baked into DCC. I used my Wise card at a Standard Chartered ATM on Durbar Marg, hit Without, and the rate was perfect. Advice to new arrivals: ignore the “guaranteed rate” message and always decline conversion.

I learned the hard way in Pokhara. Pulled cash at Himalayan Bank near Lakeside, pressed With Conversion because it showed GBP, and I thought it was safer. My Barclays account later showed nearly £15 extra on a 20,000 NPR withdrawal. At Standard Chartered near the tourist bus station, I pressed Without, and it was perfect - charged straight in rupees at Mastercard’s rate. Staff at my guesthouse in Thamel laughed when I told them, saying most first-timers in Nepal fall for that DCC trick.

ATMs in Nepal - Standard Chartered, Nabil Bank, and Himalayan Bank around Thamel and Durbar Marg - always ask “With or Without Conversion.” This is dynamic currency conversion. If you hit With, the ATM locks the transaction in USD or GBP at a terrible rate. Without means it stays in Nepali rupees (NPR) and Visa or Mastercard apply the fair rate. I tested at a Nabil ATM near Garden of Dreams with my Revolut card, pressed Without, and the numbers matched XE. Choosing With once at Himalayan Bank near Kathmandu Durbar Square cost me almost 7% extra.