when you use your credit card abroad...

[whataboutbob]

and they ask you if you want to pay in pounds or in the local currency, what is the best value. I had that in Spain recently and I couldn't remember the best way round. TIA.

Always pay in the local currency. You will then use either Visa's, Mastercard's or American Express's exchange rate. However, your credit card issuer will also charge a % fee.

You pay in the local currency

My nationwide credit card doesn't charge a fee for foreign purchases

Yes, pay in the local currency. To avoid paying fees either, get the right card. We use Santander Zero for international travel.

Thanks, pretty sure I paid in pounds. At least now I know. I'd got a Halifax clarity card to get better rates!

Local currency. And make sure you have one of the fee free cards like Halifax or creation.

Get a Revolut card for paying abroad - so amazing.

Always pay in local currency - and make sure that the person handling the sale does what you ask. We've been ripped off twice this year by a car hire company who somehow converted back to sterling, despite being told to do it in euros . Yes, Budget in Ireland, my finger is pointing at you!

Thanks everyone. Expensive lesson learnt! Clarity card and euros all the way from now on.

The reason is that the exchange rate on the machine can be set to whatever they want, and you won't know. So if you pay in sterling you pay a lot more.