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Local Travel Policy

1.  Purpose . This directive provides guidance on the reimbursement of transportation expenses incurred on official business within the local area of an employee’s official worksite/duty station or appropriate alternative worksite. While the Federal Travel Regulation regulates expense reimbursement for temporary duty travel away from the official station for GSA employees, it does not provide guidance for local travel expense reimbursement.

2.  Scope and Applicability . 

     a.  This directive applies to all GSA organizations, programs, and personnel, including all Services, Staff Offices, and Regions. This Order applies to the Office of the Inspector General (OIG) to the extent that the OIG determines it is consistent with the OIG’s independent authority under the Inspector General Act and does not conflict with other OIG policies or the OIG mission. This Order applies to The Civilian Board of Contract Appeals (CBCA) to the extent that the CBCA determines it is consistent with the CBCA’s independent authority under the Contract Disputes Act and applicable Federal Court decisions and does not conflict with other CBCA policies or its mission.

     b.  Non-GSA employees who perform local travel at the request of GSA may be reimbursed as provided by their contract or inter- and intra-Government agreement, as applicable. Reimbursement to non-GSA employees will be processed through the financial system, not the E-Gov Travel Service 2 (ETS2).

3.  Cancellation . This directive cancels and supersedes OAS 5770.1, Local Travel.

4.  Responsibilities . The Office of Travel and Charge Card Services, Office of Administrative Services (OAS) develops local travel policy for GSA employees. Regional offices may supplement this policy, but regional policy may not change or conflict with official policy. Regional policy must be cleared by the Office of Travel and Charge Card Services.

5.  Revisions . The following changes have been made to the Order:

     a.  All references to “HCO 6040.1A, GSA Mobility and Telework Policy” have been changed to “HRM 6040.1A, GSA Workforce Mobility and Telework Policy.”

     b.  All references to “OAS 4200.1A, Management and Use of the GSA SmartPay® Purchase Card” have been changed to “OAS 4200.1B CHGE 1, Management and Use of the GSA SmartPay® Purchase Card.”

     c. All references to “Government contractor-issued travel charge card” have been changed to “GSA travel card”

     d. Paragraph 6 has been revised to spell out the requirement for employees to obtain their authorizing official’s approval prior to incurring local travel expenses.

     e. Paragraph 9 has been revised to add guidance regarding which modes of local travel should be considered more advantageous to the Government in relation to other modes.

     f. Paragraph 9.d. has been revised to include transportation network companies (TNCs) and innovative mobility technology companies (IMTCs) as authorized methods of transportation for local travel.

     g.  Paragraph 9.d. has been revised to increase the maximum allowable tip to 20% of the method of transportation’s fare.

     h. Paragraph 11.f.  has been revised to add guidance requiring justifications in the comments section of local vouchers involving claims for mileage and claims involving use of a taxicab, TNC, or IMTC.

     i. Appendix A: Glossary of Terms has been added.

     j. “Appendix: Local Travel Scenarios” has been changed to “Appendix B: Local Travel Scenarios”.

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PER DIEM LOOK-UP

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Rates for Alaska, Hawaii, U.S. Territories and Possessions are set by the Department of Defense .

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Rates are available between 10/1/2022 and 09/30/2025.

The End Date of your trip can not occur before the Start Date.

Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.

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When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.

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4 Min Read | Last Updated: July 5, 2024

Should You Pay in Local or Home Currency When Traveling Abroad?

If you’re going to use a credit card on an international trip, you might be wondering whether to pay in local or home currency. Learn why local is usually best.

This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

At-A-Glance

Depending on the credit card you use when traveling abroad, you could pay fees that total 6% or more of purchases.

Using a credit card with no foreign transaction fees and choosing to make purchases in local currency may save you money.

Currency conversion apps can help you better understand pricing and identify hidden charges.

When traveling internationally, you may carry cash, access ATMs, or charge just about everything to a credit card or debit card. 1

Yet when paying at a hotel, shop, or restaurant, you’re likely to encounter a choice: Should you pay in the local currency or in your home currency? Of course, if your preference is to pay in cash – or if it’s necessary to do so – it’s a moot point. With cash, there are no additional fees at the point of sale, though you may have paid a fee at the ATM or currency exchange booth.

Paying with a card is different. Presented with the local versus home currency option, the decision you make can lead to significantly different costs. With a credit card that has no foreign transaction fees, you can usually save money by selecting the local currency option.

The Right Credit Card and the Right Currency Choice Can Trim Costs

The best credit cards for international transactions are designed to help travelers navigate the sometimes-tricky waters of foreign currency conversion, and these cards are often accepted at a large scale internationally. Credit cards convert these international transactions at the current exchange rate, typically based on a globally recognized floating rate. 2 So, whether you’re savoring paella at a restaurant in Spain or buying a wool blanket at a shop in New Zealand, you’re paying the exchange rate at that moment.

Nevertheless, several factors can lead to different outcomes and costs. One of the most important issues is the type of credit card you use. If you use a card that charges foreign transaction fees , you might expect to pay about 2% to 3% of each transaction in fees, but that number can vary according to the card or card issuer. 3 Depending on how much you spend over the course of a journey, such fees can take a considerable bite out of your travel budget. So, it’s wise to select a travel credit card that doesn’t tack on foreign transaction fees.

Second, it’s critical to be aware of “currency conversion fees” or “dynamic currency conversion” (DCC), which gives travelers the option to convert the purchase price into their home currency. However, these conveniences come with fees, and those fees aren’t always easy to spot; they’re often stealthily built into the transaction. For example, if you choose to pay for items in your home currency, you may be subject to a DCC fee imposed by the merchant’s credit card processor. 3

   In practical terms, you may pay more to use DCCs, and in some cases you might pay as much as double the basic currency exchange fee for a foreign transaction. Because the fee is hidden within the overall price, it’s often unclear what exchange rate is being used for the conversion. 4

The consequence? Say you’re paying $1,000 for a four-night hotel stay and you decide to pay in your home currency. You could easily wind up forking over $60 in unnecessary fees (about 6%). Add that to airline, rental car, restaurant, and shopping expenses over the course of a trip, and you could unknowingly spend hundreds or even thousands of additional dollars without even realizing it.

Understanding the Mechanics of Foreign Transactions Can Save You Money

Why would anyone choose to use dynamic currency conversion? Simply put, it is a value-added service. The ability to view transactions in your country’s currency is typically easier to understand. What’s more, you view the converted price at the exact moment you make the purchase. 4

However, most of the time there are other less costly ways to negotiate foreign currency conversions when traveling. One of the simplest methods is to use a currency converter app on your smartphone – or look up the exchange rate – and determine the real cost using the calculator on your phone. This also makes it possible to view any potential added fees that have been inserted into a transaction, especially if it’s a DCC transaction.

Keep in mind that the best credit cards for international travel don’t impose foreign transaction fees. If you use one of these cards and avoid DCCs by selecting the local currency payment option, you will usually come out ahead.

The Takeaway

It’s vital to understand how sometimes-hidden credit card transaction fees can add up and chip away at your dream vacation budget. These include direct foreign transaction fees tacked on by credit card companies and dynamic currency conversion fees that allow you to view and make a purchase in your home currency. While there are some situations where it may make sense to use DCCs, it’s usually better to pay in the local currency – especially if you use a credit card that doesn’t charge foreign transaction fees.

Show Article Sources

1 “ Accessing Money Abroad ,” Buffett Institute for Global Affairs

2 “ How Are Currency Exchange Rates Determined? ,” Britannica

3 “ What Is a Foreign Transaction Fee on Your Credit Card? ,” Experian

4 “ Dynamic Currency Conversion Payment Options Specifically Harm Less Financially Literate Customers ,” Journal of Public Policy & Marketing

Samuel Greengard  has traveled to 65 countries and all 50 U.S. states while writing about business, technology, and finance for numerous magazines and websites. He is the author of the book “Internet of Things” (MIT Press, September 2021).

All Credit Intel  content is written by freelance authors and commissioned and paid for by American Express. 

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Get to Know International Travel Fees

Traveling internationally comes with unique taxes and fees. But a bit of pre-trip planning can trim many of those international travel costs.

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Maximize benefits while traveling abroad by using the best credit card for international travel, offering perks like no foreign transaction fees and rewards points.

The material made available for you on this website, Credit Intel , is for informational purposes only and intended for U.S. residents and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.

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IUOE Local 955  maintains a Pension Plan Trust Fund to support and protect participating Union members and their families.

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