I used my US card in Taiwan & the ATM just asked me Charge in USD or Charge in EUR - I feel like I should choose USD coz thats the currency in my bank account but it had these super confusing numbers on the screen saying 8% markup so not sure. What should I do?
Using Revolut and local ATMs this month, I learned this trick fast. Decline the USD charge screen - always. That way your card network converts at real mid-market rates. Choosing USD locks in the ATM’s bad rate. I withdrew from an Taishin Bank ATM, and the difference between the two screen options was over US$4 on a small withdrawal. It’s a small change but adds up over time.
That “Charge in USD/EUR” prompt is exactly DCC. It looks tempting, but the exchange rate they offer is usually awful. I tested it: choosing USD felt “safer,” but cost me about 7% more. Instead, decline it, let Visa or Mastercard do the conversion - much cheaper. Banks in Taiwan, like CTBC ATM, allow you to decline and withdraw TWD smoothly.
Same thing happened at an E. Sun Bank ATM in Taichung. I nearly clicked USD, thinking it was simpler. But when I declined and let my US bank convert, I got a noticeably stronger rate. Declining that foreign currency charge prompt means your bank sets the rate - generally better than the ATM’s markup. So always pick to be charged in TWD at ATMs here.
That screen is DCC (Dynamic Currency Conversion). If you pick “Charge in USD,” the ATM applies a hefty markup - easy 6-8%. Even though it shows dollars, you’re getting ripped off. Always choose the local currency option (TWD) - decline the USD prompt - so your bank handles the conversion at a fairer rate. I tried both options at an First Bank ATM in Taipei and the TWD route saved me about NT$200 on a NT$5,000 withdrawal.