The Common Mistake Travellers Make at Checkout

You’re at a shop abroad, ready to pay. The card machine asks:

“Would you like to pay in AED or local currency?”

Most people choose AED as it feels familiar and the amount is known. But that simple choice could be costing your business up to 5% more on every transaction.

Whether you’re abroad or paying for global SaaS tools like Google Ads or Netflix, choosing your home currency (AED) triggers hidden fees through something called Dynamic Currency Conversion (DCC).

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What Is Dynamic Currency Conversion (DCC)?

Dynamic Currency Conversion is when a merchant or ATM offers to convert your payment into your home currency (AED) before processing it.

While It looks helpful, but it’s actually a profit mechanism for the merchant or payment provider.

Here’s what happens behind the scenes:

• The merchant sets the exchange rate, not your bank or card issuer.
  
  
• The markup fee (anywhere from 3–10%) is added on top of an inflated rate.
  
  
• The result? You pay a double markup: once for conversion, again for rate inflation.
  
  

In other words, the “Pay in AED” button is not a convenience feature but a surcharge in disguise.

Real Example: Paying Abroad in AED vs. Local Currency

Let’s say you’re in France buying business supplies worth €100.

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That 4–8% difference might not seem huge, but at scale, across company travel, advertising, and SaaS payments it compounds into tens of thousands of dirhams annually.

Why This Matters for Businesses

For companies handling frequent cross-border payments, these “invisible losses” add up fast.
Teams paying for tools like Meta Ads, Microsoft, or HubSpot often get billed in AED through DCC without noticing.

Because DCC rates are controlled by the merchant, not your card provider, you lose visibility and margins.

With most credit cards, it’s cheaper to pay in local currency and let the network handle conversion instead of the merchant.  

With Qashio’s corporate cards, every international transaction is processed at mid-market FX rates, making it more significantly cheaper when you pay in local currency.

Golden Rule: Always Choose the Local (Foreign) Currency

Whenever you’re asked to choose between AED and the local currency:
✅ Pick local currency ❌ Avoid converting to your home currency (AED)

Let your bank or card provider handle the conversion - especially when using Qashio cards, which have fair FX rates and transparent fees.

Why Transparency Matters

Every hidden fee is a margin leak your finance team could easily prevent.
Choosing the right card and currency can instantly improve cash efficiency, expense reporting, and profitability.

That’s why Qashio helps UAE businesses take back control of their foreign spending, with transparency built into every transaction.

Frequently Asked Questions

Q: What is DCC (Dynamic Currency Conversion)?
A: It’s when a merchant offers to charge your card in AED instead of local currency. They set the rate and add hidden fees, making your purchase more expensive.

Q: How much extra does DCC cost?
A: Usually 4–10% more per transaction, depending on the merchant or ATM.

Q: How can I avoid DCC fees?
A: Always pay in local currency, and use a corporate card like Qashio that clearly displays FX rates.

Q: Does Qashio support multiple currencies?
A: Yes. You can hold and spend in AED, USD, EUR, GBP, and SAR, all managed through one dashboard.

The Bottom Line

Next time you’re abroad or paying an overseas merchant online, remember:

The “Pay in AED” button is not your friend.

Choose local currency, and let Qashio handle the conversion transparently.
That small decision can save your company thousands of dirhams a year, and give you full clarity over every international expense.

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