I withdrew cash at an ATM in Tonga and selected Accept Conversion because it sounded safer. Later I saw the rate was terrible. Is this normal?
Yes, this is pretty standard with ATMs that offer DCC. I made the same choice at a BSP ATM at Fuaʻamotu Airport, and my N26 card later showed I paid much more than expected. The ATM’s rate included a hidden markup, which you won’t see until the charge goes through. I tested it again by selecting “Decline” and the result was clearly cheaper. Rule of thumb for all travelers: if the ATM asks, always decline conversion and let your card handle it.
I used an ATM in Vavaʻu last month, hit “Accept” out of habit, and regretted it when I saw the Monzo app notification. The rate from Tongan Paʻanga to GBP was awful. DCC is deceptive it makes it seem like you're being cautious, but you’re actually letting the ATM set the rate, which is never in your favor. After that, I switched to “Decline” and got a much better deal. Lesson learned always decline conversion.
Same happened to me at a Tonga Development Bank ATM near the ferry terminal. I chose “Accept” thinking I’d avoid any hidden fees, but my Revolut card got billed in GBP at a really bad rate. That’s the DCC trap the ATM converts the money, not your card, and sneaks in extra charges through the exchange rate. I withdrew again and hit “Decline” the rate was much better. Always decline if you see your home currency on the screen.
Yes, totally normal and unfortunately a common mistake. I withdrew from a Bank South Pacific (BSP) ATM in Nukuʻalofa, selected “Accept” thinking it was safer, but my Wise card showed a terrible exchange rate, nearly 6-7% off from mid-market. That’s Dynamic Currency Conversion (DCC) when you accept, the ATM does the currency conversion using its own inflated rate, not your bank’s. The right move is to always Decline Conversion and let your card provider handle it.