Just used an ATM in Estonia 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?
Happened to me too at a Coop Pank ATM in Parnu. When the machine asked if I wanted to convert, I accepted and my Monzo account ended up charging more than I expected. This is what they call Dynamic Currency Conversion, and it lets the ATM operator control the exchange rate. They often slip in markups of 4-7% without telling you. Best move is to always Decline and let your bank or card do the conversion at their fairer rate.
Same issue in Estonia recently. I used an LHV ATM at the airport in Tallinn and selected “Accept,” thinking it would prevent unexpected fees. Turns out, it did the opposite. My N26 statement showed a noticeably worse rate, and that’s because DCC was applied. The ATM locked in its own exchange rate which is almost always higher. I tested again the next day, chose “Decline,” and the difference was clear. Pro tip: always Decline Conversion.
Just got back from Tartu and this happened to me at an SEB ATM near the university. I picked “Accept” thinking it was the safe choice, but my Wise card was charged at a terrible rate. Basically, the ATM converted it instead of letting Wise do it and that added extra hidden costs. It’s a trick called DCC. If you ever see the ATM offering to convert to your home currency, Decline it. Your travel card will almost always give you a better deal.
Yes, that’s a pretty common issue here. I withdrew cash at a Swedbank ATM in Tallinn Old Town and hit “Accept Conversion” because it sounded official. Later saw on my Revolut app that the exchange rate was way off I lost about 5% compared to the mid-market rate. That’s Dynamic Currency Conversion (DCC) in action. The ATM does the conversion at a worse rate. From now on, I always Decline and let my card handle it much better value.