I withdrew cash at an ATM in Vietnam and selected Accept Conversion because it sounded safer. Later I saw the rate was terrible. Is this normal?
While visiting the Old Quarter in Hanoi, I used my Barclays card to withdraw Vietnamese Dong at an Agribank ATM and then from TP Bank. The screen gave me the option to accept conversion to GBP, which sounded safe but actually gave me a terrible exchange rate. The ATM operator uses a dynamic currency conversion system that adds a high markup. Since I have a Barclays travel card with no foreign transaction fees, I prefer to be charged in the local currency and let Barclays handle the exchange at their official rates. It saves a lot of money compared to accepting conversion on the spot.
I had a similar problem in Da Nang last year with my Citibank debit card. I took out cash from a Sacombank ATM and was prompted to accept conversion to USD. I thought it was convenient but ended up losing quite a bit because the Sacombank ATM applied a worse rate than Citibank’s foreign exchange rate. I checked online forums and found that dynamic currency conversion is a common issue worldwide. Now I refuse the ATM’s currency conversion and let Citibank do the conversion later on my statement, which is much more cost-effective.
When I was in Hanoi last month, I used my Chase Sapphire credit card to withdraw cash at a Vietcombank ATM. The machine asked if I wanted to accept the currency conversion, which I thought would make things simpler. It turned out to be a bad idea since the conversion rate was really poor compared to the rates from my card issuer. Chase usually gives me decent rates, but the ATM’s dynamic currency conversion added a significant markup. From then on, I always select “No conversion” or “Charge me in the local currency” whenever I withdraw abroad, especially in Vietnam where ATMs push this option aggressively.
I recently traveled to Ho Chi Minh City and used my HSBC debit card at an ATM near Ben Thanh Market. I selected the “Accept Conversion” option thinking it was safer since it said it would convert to my home currency. Unfortunately, the exchange rate was much worse than the rates I usually get. Later I checked and found out the ATM was using dynamic currency conversion (DCC), which basically means the ATM provider decides the rate, often adding a hidden markup of like 6%. I’ve learned now to always choose to be charged in Vietnamese Dong and let HSBC handle the currency conversion because their rates and fees are more transparent.
HSBC ATM in Vietnam worked well with both Visa and Mastercard. I declined the currency conversion and avoided the 5% fee. Location felt secure, even after dark.
Vietcombank ATM in Vietnam gave the usual conversion prompt-Decline Conversion is the smart choice to save on fees.
At Citibank in Vietnam, I was asked to Accept or Decline Conversion. Go with Decline to avoid sneaky conversion charges.