If you use your card outside Malaysia, you might be able to choose either Malaysian Ringgit or the local currency.

Here's a guide to help you decide which is the best option for you when spending money outside Malaysia.

What is dynamic currency conversion?

Whether you’re buying a meal in a cafe or withdrawing money from a cash machine in UK, you might be given the option to pay in your home currency.

This is called dynamic currency conversion (DCC). It means the amount is converted from the local currency to Malaysian Ringgit at the point of sale.

It’s important to understand that with DCC, there are extra fees, and the exchange rate is set by the retailer or their bank. You should always have the option to pay in the local currency instead – no one should choose on your behalf.

Paying in Malaysian Ringgit

By choosing to pay in Malaysian Ringgit, you’ll better understand how much you’re spending because it’s a currency you’re more familiar with.

If you opt for dynamic currency conversion, you should be clearly shown:

• The amount in both currencies
• The exchange rate being used
• Any extra fees

Shops, restaurants and cash machines should display this in your receipts and on screen so you can decide for yourself.

Paying in local currency

You may opt to spend like a local - using their currency. For example, that would mean choosing pound sterling in UK or dollars in the US.

When you choose to pay in the local currency, Visa or Mastercard will set the exchange rate. Your bank may also charge a fee to carry out the transaction.

Some retailers outside the Malaysia might automatically assume you want to pay in Malaysian Ringgit unless you say otherwise, so always check the amount before paying.