When offered this choice in the EU, if you say 'sterling' you'll pay on the basis of the exchange rate charged by the shop and/or their bank. If you say ''euros' you'll be charged at the exchange rate being used by your own bank/credit card issuer at the time the transaction is processed. I would always ask what is the rate of exchange that will be used for the transaction but it's not always easy to know which is the best option, especially as you will need to factor in the separate transaction charge that some banks/credit card issuers will add onto your statement.

When offered this choice I've always opted for being charged in the local currentcy because I've heard to many stories of people being given a very poor exchange rate and finding that they've paid far more in the end than they expected.

SM

I always opt to pay in the local currency as we pay with a Nationwide credit card which charges the Interbank rate so we are not ripped off with a poor exchange rate.

luci