You are always better off drawing out the cash and paying that way. There is a lot of this sort of thing going on now I'm afraid. Still the consolation is that the fags are still a heck of a lot cheaper.

just had my bank statement and I have been charged in sterling from Montemar tobacconists&my receipt says exactly the same as Thomas.Didnt notice it before as we have used this tobacconist many times and have always been billed in Euros.They maybe think they are doing you a favour as it will not matter to the tobacconist whether it is Euros or Sterling as they wont make anymore money,only the bank with the commision.Maybe they have changed banks&the bank has told them to charge in Sterling if the customer is a Brit.Dirty trick.I drew money out of the ATM during our stay and got e1.26/£,which was 3cents more than the best exchange offered,but by being charged in sterling at Montemar,the exchange rate I got was only e121.3 due to cmmission.!We are there next week so will make sure that Montemar Tobacco charge me in euros.Will report when we get back.Like Thomas says,there is no benefit to useing a Nationwide card if you are being charged in Sterling.

Thats right oscar, the benefits of the Nationwide card is when you withdraw money. Thats why I think you are better pricing up the tabacco/cigs you want ,then draw out the cash, asking the machine to choose euros. Otherwise insist that the transaction is done in euros before they swipe your card. Just another way for the banks to make even more money....

As well as losing out on the card,it looks like the euro exchange rate is going to be awful.Was getting excited cos a few days ago the rate increased to 1.295.Should have known that with us travelling to Torremolinos on sunday the rate would decrease.It was 1.235 earlier this morning but has now recovered to 1.245.Not a lot but going in right direction.The weather looks like being bad as well.Just my luck.Bet if I joined a marching band Id get the bloody piano!

Ýour right about the weather Oscar. I´m here now and it´s awful, blowing a gale and cloudy. Least the rains keeping off....for now!

Hi Oscar

I think its the shop keeper who gains on this type of transaction. Looking at my latest Nationwide statement it states the following "If your going away for a short break always remember to pay in the local currency with your credit card. Otherwise shops abroad may change your purchase into sterling using higher exchange rates and charge you commission".

I think that some of you are being rather unfair on the retailers, this is hardly a 'scam'. Since the introduction of the euro many newer cerdit card terminals identify the issuing country of the card and automatically switch to that country's currency, especially if its GBP or USD.

You always have the option of paying in euros if you ask, in most cases if you don't the retailer will probably assume you don't care if you are paying in your default currency as defined by the machine.

You really can't blame harrassed tobacconists whose shops are full of Brits buying sackfuls of rubbish brands for processing card transactions asap. Remember the profit margin on cigarettes is very low in Spain, much of which is eaten up by the card commission.

In the main tabac in Torrie Town, and in the airport ones, they always ask which currency you want to pay in, in the one in Carihuela they always charge in euros.

Just ask! It's only the same as the currency options most of the ATMs offer these days.

I dont know where you get "harrassed tobacconists"from.If you see Jose,from Montemar tobacconists,driving around in his flash red sports car,he looks far from harrassed!They must be minting it.

<I dont know where you get "harrassed tobacconists"from>

From the looks on their faces when their shops are full of vile, rude, pushy Brits buying clearly-illegal quantities of rubbish bands to smuggle back to the UK. It is because of such people that the strict 'max 800' rule is coming back, which is just going to be a nuisance for everyone concerned.

I don't have any concern about José or any other tobacconist 'minting it' when it's the UK government's stupid taxation policy that allows them to do so.

But I do have concerns about the attitudes of people who are quite happily ripped-off by every supermarket, bank, energy company, garage etc in the UK then assuming that everyone in another country they visit is trying to do the same.

Getting a bit away from the point of the thread. Moral of the story is watch what you´re doing. Make sure you know what your paying for before you hand over your card, or pay in cash.