Credit Cards Currency Conversion: Important Tips

If you are planning a trip abroad, it is not necessary to prepare a local cash and open cards in different currencies. For example, international payment systems Visa or MasterCard are accepted all over the world, regardless of the currency of your card account.

With such cards, you always have the opportunity to make a payment or get cash in the currency of the host country. If the transaction currency does not coincide with the account currency, in this case, conversion occurs.

Major Factors of Influence

When paying by credit card abroad or on the Internet on foreign websites, foreign exchange depends on:

  • the currency of the card account;
  • the estimated currency of the international payment system in the US dollar or Euro.

If the currency of the account is different from local, but the merchant is served through a non-resident bank (in most cases, Internet ticket sales sites), the financial write-off most often comes in Euro or US dollars.

What is DDC?

Dynamic Currency Conversion is an instant process which implies carrying out transactions abroad in the currency of the issuing country of the card. A client receives a local money in the ATM or the purchase is made at local prices, and before he sees the equivalent of the operation in the currency of his credit card account.

Operations With Instant Currency Conversion Can Be Carried Out With:

  1. Withdrawal of cash abroad at an ATM or cashier.
  2. Paying abroad in the trade networks.
  3. Operations on foreign Internet resources.

In fact, there are several stages of conversion. This leads to a noticeable difference between the amount of the transaction, which is shown in the ATM, checkout or online store, and the real sum of operation.

Most often, thus, the operations that have been performed on the websites of airlines, car rentals, hotels and others with a representative office, or which are non-residents and are serviced in foreign non-resident banks. Avoid double conversion, read terms of your credit cards as for if the bank eminent charge any fee while foreign transactions. A no-fee indicator is a very good tip to choose this very card.

Pay Attention!

You can find the exchange rates on the site of the banks, on Visa and MasterCard web resources. However, take into consideration that figures indicated as conversion rates of international payment systems may be of an informational nature. They may do not imply the commercial rate of the bank. Therefore, with their help, it is not possible to accurately calculate the amount of transaction.

If you use the Mobile Bank, on the day of the transaction you receive an SMS-notification with the amount of the balance on the credit card account. These numbers are not final for withdrawing from the account and can be changed due to a change in the rate at the date of the actual writing off the funds from the card account.

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