Introduction
When traveling to Dubai, one of the most common questions tourists ask is (A question I have also asked myself): Should I pay in local currency (AED – United Arab Emirates Dirham) or my home currency when making purchases?
Whether you’re buying something at The famous Dubai Mall, paying for a meal, or even booking activities such as the Global Village, choosing the right currency can impact how much you spend.
Home or Local Currency?
Listen up friends; whenever you’re making a payment and you see the options at a payment terminal, ATM, asking you to choose between local and home currency, always choose to pay in the local currency (AED). Let us look at the benefits of choosing local currency over home currency:
- Better Exchange Rates – When you pay in your home currency, the store or ATM applies Dynamic Currency Conversion (DCC). What is this? It’s a process where the merchant converts the amount for you. When this happens, the exchange rates applied are usually much higher than what your bank would offer.
- Lower Fees – Paying in your home currency means the merchant adds extra processing fees for converting the amount. However, if you choose local currency (AED), your bank or credit card provider handles the exchange, usually at a lower cost. This means you get a better deal with fewer hidden charges.
- Avoid Hidden Charges – Some merchants add additional service fees when you opt for home currency, increasing your total cost without you realizing it.
Best Payment Methods in Dubai
To save money on currency conversion, here are some recommended payment options:
- Credit/Debit Cards with No Foreign Transaction Fees – If your card offers zero international fees, use it for most transactions. Visa and Mastercard are widely accepted.
- Multi-Currency Travel Cards – Preload AED on cards like Wise, Revolut, or N26 for better exchange rates. Your local bank may also offer pre-paid cards. Use this option when traveling.
- Cash for Small Purchases – Most places in Dubai will accept cards, however, it is always advisable to carry some AED for small transactions like paying for taxis, shopping at the local markets, and tipping.
- Mobile Payment Apps – Apple Pay, Google Pay, and Samsung Pay are widely accepted and offer added security.
Conclusion
So, to ensure that you do not spend unnecessary money on fees, ensure you choose to pay in the local currency, that is, in Dirhams. When traveling, it’s always important to stick to your budget and this is one of the ways to ensure you do exactly that.
Related: The Cheapest Time to Visit Dubai
