ATMs in Faroe Islands keep asking Charge in EUR or Charge in USD - what does that mean? Shows high charges for this
Near Vágar Airport, the machine gave me a choice: charge in USD or EUR. Looked harmless but it’s DCC. You’ll always lose if you let the ATM convert. When I picked EUR, my Monzo card handled it correctly, and the rate matched the real interbank rate. When I tested USD, I lost about $14 on a 1,000 DKK equivalent withdrawal. Always go local (EUR/DKK equivalent), not USD.
I was using a Nordoya Sparikassi ATM, and it pushed USD as a “safe option.” It’s not safe-it’s expensive. Faroes technically use the Danish krone, but most international ATMs here give you a choice in EUR. Always decline conversion and go with EUR. My Wise card showed that the difference was about 9% markup when I chose USD by mistake. Lesson learned.
Happened to me at a Betri Banki ATM in Klaksvík. Screen popped up with “charge in your home currency (USD).” Very misleading! If you accept, you lose big on conversion. If you stick to EUR (or DKK equivalent), your card company handles the exchange. I used my Revolut card and got a perfect interbank rate after declining. Always go for EUR, never USD, even if the ATM tries to “recommend” it.
At a BankNordik ATM in Tórshavn, it asked if I wanted to be charged in USD instead of euros. That’s Dynamic Currency Conversion (DCC). If you press USD, the ATM uses its own rate, which is always worse. I tested both options-$200 withdrawal cost me nearly $17 more when I said yes. Always pick EUR, because the Faroese króna is pegged to DKK, and cards will settle at the proper Visa/Mastercard rate.