🌍 Guide · ~6 min

How to Spend Abroad the Cheapest Way

Three rules: (1) always pick "local currency" at checkout; (2) use a card with no foreign transaction fee; (3) Chinese cards routed via UnionPay avoid the currency conversion fee. Together these can save 3%–8% versus paying carelessly.

1. Always choose local currency

When a terminal or website asks "pay in local or home currency", choose local currency. Home currency triggers DCC (Dynamic Currency Conversion), where the merchant's side pads the rate by 3%–7%. Local currency lets the card network convert near mid-market — almost always cheaper.

2. Use a no-foreign-transaction-fee card

Many issuers charge a 1%–3% foreign transaction fee, but plenty of "travel" cards are now 0%. Check your card before you travel — it adds up over a trip.

3. Chinese cards: prefer UnionPay

On Visa/Mastercard, a non-USD purchase is often converted via USD first, incurring a ~1%–1.5% currency conversion fee; UnionPay settles directly and usually waives it for CNY. Prefer UnionPay where accepted.

4. ATMs do DCC too

Foreign ATMs also offer "home or local currency" — again pick local currency and refuse the ATM's markup. Note cash withdrawals may carry their own fee and interest.

See it for yourself: plug your purchase into the CardAbroad calculator to compare "local / UnionPay / DCC" and how much you save.

→ Open the calculator