I withdrew cash at an ATM in Honduras and selected Accept Conversion because it sounded safer. Later I saw the rate was terrible. Is this normal?
Just came back from Honduras and learned this the hard way at a Ficohsa ATM at La Ceiba airport. I accepted the conversion and got slammed with a bad rate. My N26 account showed I lost about 6% on the exchange. DCC is the culprit when you accept, the ATM converts to your home currency with their own rate, not your card's. It’s misleading. Since then, I always decline conversion and let my bank handle it way cheaper and more transparent.
I used an Occidente Bank ATM in San Pedro Sula, and I also selected “Accept.” Later, when I checked my Monzo statement, I realized the rate was significantly worse than mid-market. What you ran into is DCC it sounds reassuring, but it’s a way for the ATM operator to add a markup through a fixed exchange rate. Always Decline Conversion, especially if you’re using travel-friendly cards like Wise, Revolut, or N26.
Same thing happened to me last month at a Banco Atlantida ATM in Roatan. I pressed “Accept” thinking it would help avoid unexpected fees, but my Revolut card was charged at a really poor rate. DCC is tricky it shows the amount in your home currency and locks in a bad rate with hidden markups. I did another withdrawal the next day, chose “Decline,” and the rate was much better. Always say No to conversion if you want to save money.
Yes, that’s unfortunately very normal. I withdrew cash from a BAC Credomatic ATM in Tegucigalpa and chose “Accept Conversion” because it sounded like the secure option. But my Wise app later showed a terrible exchange rate I ended up paying way more than I should have. That’s called Dynamic Currency Conversion (DCC). The ATM converts the money using its own inflated rate instead of letting your card provider do it. Always Decline to get your bank’s better rate.