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
IIRC-
WITHOUT conversion means the ATM you’re withdrawing from makes the conversion.
WITH conversion means your own bank does the conversion.
Generally, the local bank (the ATM owners) do it cheaper than your own bank in the Euros zone.
Latest Answers