I never understood the exact mechanisms behind this. I’m in Thailand right now. I have a savings account with euros at bank A. I want to withdraw Thai Baht from an atm of bank B. I get the option to withdraw with or without conversion. With conversion is more expensive, so I’m advised to go for without conversion.
Since I don’t have thai baht in my savings, I’m guessing at some point my euros always needs to be converted to baht. Who pays for the conversion in which cases? Why would the ‘with conversion’ option be more expensive? Why would I ever even pick the ‘with conversion’ option?
In: Economics
If you select with conversion, then the ATM will convert for you and rip you off.
If you select without conversions, your bank, VIA/MASTERCARD will do the conversion for you and that will be at a really good rate.
I think the only time you don’t want to select “without conversion” is with amex, they will convert your Baht to Dollas, and then Dollas to whatever currency.
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