Always choose the local currency.
When you’re making a purchase outside the U.S., some merchants or card terminals may ask whether you want to pay in USD or in the local currency.
For example, if you're in Switzerland, the terminal may ask whether you want to pay in USD or CHF. You should always choose CHF, the local currency.
When you choose the local currency, Visa handles the currency conversion and applies a standard 1% FX conversion fee.
When you choose USD, the merchant handles the conversion instead. This is called Dynamic Currency Conversion (DCC).
DCC may seem convenient because you see the price in USD at checkout, but the merchant’s exchange rate often includes hidden fees and markups. These markups can sometimes add an extra 4–8% to your purchase.