Should I pay in AED or the local currency when travelling?

Almost always pay in the local currency. When a foreign terminal offers to charge you in AED, that is dynamic currency conversion (DCC) and the merchant or their payment processor sets the exchange rate — usually with a markup of around 3% to 12%. Paying in the local currency lets your own card do the conversion instead, which is where a 0% FX card on the Mastercard rate saves you money.

What is dynamic currency conversion (DCC)?

Dynamic currency conversion is when a foreign card machine or website offers to bill you in your home currency (AED) instead of the local one. It feels reassuring because you see the price in dirhams, but the convenience comes with a hidden, merchant-set exchange rate that is typically far worse than the network rate your card would use.

Is paying in local currency always cheaper?

It is cheaper whenever your card converts at or close to the mid-market (interbank) rate. With Sinder, foreign spending settles at the Mastercard Exchange Rate with 0% Sinder FX markup inside your AED 40,000 / month allowance, so paying in local currency is the better choice. If your bank card adds a large FX markup of its own, the gap narrows — which is exactly why the card you carry matters as much as the choice at the terminal.

Does Sinder charge to spend in a foreign currency?

No Sinder FX markup applies within your AED 40,000 per month worldwide allowance; spending settles at the Mastercard Exchange Rate. Over-allowance rates apply only to spending above that monthly threshold. There is no annual fee, no monthly subscription and no per-transaction surcharge.

What should I do if the terminal already shows the price in AED?

Ask the cashier to cancel and re-run the transaction in the local currency, or look for a 'pay in local currency' option on the screen. If a payment goes through in AED by mistake, the DCC markup is baked in and usually cannot be reversed afterwards, so it is worth catching it before you tap or sign.

Should You Pay in AED or Local Currency When Travelling? (2026 Guide)

By Sinder Team — Sinder · Updated 2026-07-01

Paying in AED abroad via dynamic currency conversion (DCC) almost always costs more. Here's why paying in the local currency is cheaper, with a real EUR 20 Barcelona example.

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Paying in AED abroad via dynamic currency conversion (DCC) almost always costs more. Here's why paying in the local currency is cheaper, with a real EUR 20 Barcelona example.