I withdrew cash at an ATM in Palau and selected Accept Conversion because it sounded safer. Later I saw the rate was terrible. Is this normal?
Yes, this is quite common across Pacific islands. I withdrew at a Bank of Hawaii ATM at the airport in Airai, and made the same mistake. My N26 account later showed a poor exchange rate. DCC allows the ATM to convert the currency with its own added markup, and it’s rarely in your favor. I tested it again with “Decline” and got a significantly better rate. Best rule: if the ATM shows your home currency, always decline.
Just got back from Palau and experienced the same at an ANZ-affiliated ATM in downtown Koror. I pressed “Accept” because I wasn’t sure what it meant, but my Monzo card got charged in pounds at a rate way off from what I expected. That’s how DCC works it looks helpful, but the ATM operator sets a rate that benefits them. I always Decline Conversion now and let my travel card handle it. Much better outcome.
Same thing happened to me at a BankPacific ATM near the Palau National Museum. I selected “Accept” because it sounded more secure, but my Revolut statement showed I lost a chunk to a bad rate in GBP. That’s the DCC trick the ATM converts the amount and adds a hidden markup into the exchange rate. I withdrew again the next day, hit “Decline,” and saved money. Definitely decline conversion when you see that option.
Yes, that’s totally normal unfortunately. I withdrew cash from a Bank of Guam ATM in Koror and chose “Accept” thinking it would avoid any surprise fees. But my Wise card later showed I got a really poor exchange rate, nearly 6% worse than expected. That’s due to Dynamic Currency Conversion (DCC) when you accept, the ATM converts the currency using its own inflated rate, not your card provider’s. Always Decline Conversion for a fairer deal.