The New Card Conversion Trap Worth Avoiding
When paying by credit card in Lisbon, the merchant terminal usually presents a familiar choice: pay in U.S. Dollars or pay in Euros. I always select Euros to avoid the inflated exchange rates pushed by terminal processors.
Recently, though, the machines have added a confusing second step. After selecting Euros, the terminal displays a follow-up screen asking to "Approve conversion? Yes / No."
It reads as if pressing "No" will cancel the sale entirely. The first time I encountered it, I hit "Yes" simply wanting the charge to clear. That was the trap: pressing "Yes" accepted the terminal's conversion anyway, switching the charge to USD and tacking on a 5% markup. The percentage was disclosed on the printed receipt after the transaction completed.
The next time the prompt appeared, I pressed "No." The payment went through immediately in Euros, without the terminal's added fee.
The prompt is just dynamic currency conversion disguised as a routine approval screen. "Yes" accepts their markup; "No" declines it while still approving your payment. If a terminal asks you to approve a conversion after you have already chosen local currency, press No.