what currency to pay in.

Can anyone please answer this,I am always been told when i buy stuff here to pay in Euros which of course is the currency here,but take Iceland for example say i spend 40 euros they give you the choice of pounds or euros,thing is i have a Nationwide card so if i pay using that in pounds that is all i pay,but if i pay in euros Nationwide charge me 2% of the total spend plus £1.00 for each transaction so 40 euro at say 1.18=85p to the pound=£34 but in euros i pay £34 +2%=68p +£1,=35.68 pence. what am i doing wrong. ???? I have just spent over 1400 euros on a item so work that one out.

Thank you

Depends on which card you use. It's always recommended to pay in the local currency as you will do it at the current bank rate when it comes off your card but paying in pounds and you'll be at the mercy of the exchange rate the shop machine converts it at.
In fact, the Nationwide advice page says It’s usually best to pay in the local currency as exchange rates offered by retailers don’t tend to be as competitive.

Thanks Marcliffe I do get that, and in that case the Nationwide are not daft in suggesting that knowing that every transaction i make they click a few more pounds, eg my last sentence on my post the 2% was nearly £25.

What you need to do is look at the bill and see what exchange rate the shop is giving you. For example, last month when it was 1.17 to the pound, the shop at the airport used 1.11 to the pound so you automatically lost 6 cents on every pound you spent.

This is what Martin Lewis has to say on the subject...
http://blog.moneysavingexpert.com/2013/03/12/using-plastic-overseas-always-pay-in-euros-even-if-it-says-0-commission/?_ga=1.249713542.145974346.1466548120

Pete.

Queasadalad - Nationwide advise you to use your Select Credit card for purchases overseas (as long as you can pay off the balance each month) - you actually accrue a small pot of money for each transaction and it using this card has no exchange charges!

Nationwide, like nearly all the Banks, have of late increased (or reduced their discounts on) their charges. Two+ years ago Nationwide didn't charge on foreign transactions and just converted at the prevailing Visa exchange rate and was the cheapest by far according to Which. . . Now, as stated above, they charge a 2% commission (the £1 additional per transaction fee mentioned above is ONLY for non-sterling cash withdrawals, not purchases).
The Nationwide Select Credit Card is a good way to buy goods abroad as you do get a small "cashback" based on your spend, however the 2% fee is only waived if you have previously used your card in the UK where you build up an "allowance" at the rate of £20 allowance per £100 spend i.e. if you have previously spent £1000 on your card in the UK you can spend £200 worth of euros without the 2% fee, anything over that incurs the fee.
Having stated the above, Nationwide are still one of the cheapest for foreign spending and it is still cheaper by far to purchase in local currency on most cards as paying in sterling in shops and ATMs incur much higher charges and are at the whim of the shop and their bank.

For spending over here i use a prepay currency card which is linked to my english bank account. I use caxtonfx but there are loads. U can top up on line or download the app to your phone or tablet.

I find this so much more convenient and you always know what rate you are getting as this is applied when you top up. It is accepted anywhere and ATM withdrawals are free.

Open a Spanish bank account and use debit card.