I withdrew cash at an ATM in Nicaragua and selected Accept Conversion because it sounded safer. Later I saw the rate was terrible. Is this normal?
I had the same issue at a BDF ATM in Managua. When the ATM asked, I chose “Accept” thinking it was safer but my N26 card got charged in euros at a terrible rate. DCC is designed to look helpful, but it almost always results in extra fees built into the rate. I did a test withdrawal later and selected “Decline” it was way cheaper. From now on, I always decline conversion when an ATM asks.
Just back from Nicaragua I made that mistake at a LAFISE Bancentro ATM in San Juan del Sur. Accepted the conversion, and my Monzo account showed I paid way more than expected. DCC lets the ATM do the currency exchange instead of your bank, and they sneak in extra costs through the exchange rate. Next time I hit “Decline,” my rate was much better. Definitely always decline if you're using a travel card like Monzo, Wise, or N26.
Same thing happened to me at a Banpro ATM in León. I pressed “Accept” thinking it would avoid surprise fees, but my Revolut card was charged at a terrible rate in GBP. That’s how DCC works it offers to convert for you, but uses a marked-up rate that favors the ATM operator. I withdrew again the next day, hit “Decline,” and saved noticeably. Now I always decline conversion, especially in Central America.
Yes, that’s unfortunately very normal. I withdrew from a BAC Credomatic ATM in Granada, hit “Accept,” and my Wise app later showed I got a really bad exchange rate, about 6% worse than the market. That’s due to Dynamic Currency Conversion (DCC) the ATM converts to your home currency using its own inflated rate. Always Decline Conversion so your card provider handles the exchange it’s almost always cheaper and more transparent.