This is a more recent "service" that some banks are offering. I've seen it around the UK/Eurozone but rarely further than that. I've always said no to these screens because my bank doesn't charge me a commission on foreign withdrawals so I have no need for the 2% local markup.

Weird, where did you go? Every ATM I used in Spain for 10 months asked me. When paying by card, I always asked them to charge me in Euros and never had a problem (expect for my sketchy Spanish). I've had similar experiences in France, Italy and Germany.

Citibank does this on their Prague ATMs.

One look and I saw the massive rip-off for what it was(conversion from Czech Crowns into Swiss Francs) and avoid Citi ATMs like the plague since then.

As I recall the difference on withdrawing the equivalent of 500EUR would have been an additional ~50EUR for the convenience.

Thanks, but my local bank does such conversions just fine.

Same here - I can only recall one point at which I was asked.