Conversion Costs for Foreign Currency Transactions

When you use your credit card to complete a transaction outside your country, the issuer of the credit card charges you the cost of conversion, in addition to the exchange rate. Conversion costs that apply to your card are listed in your credit card agreement.

Credit Card Currency Conversion

The conversion method used varies depending on the issuer of the credit card and also depends on the foreign currency exchanged.


Transactions in foreign currencies are converted directly first converted to U.S. dollars.


Conversion costs apply after the conversion of the purchase amount in American dollars.


Returning items purchased in foreign currency


If you decide to return a purchase made in a foreign currency, the dollar amount of your refund may be different from the amount of the original transaction.


Indeed, because of its daily variation, the exchange rate may not be the same at the time of redemption at the time of purchase.


Cash advance fee


An advance of funds in foreign currency is like an advance of funds in American dollars. The only difference is that the issuer of your credit card may impose higher fees when advances are obtained in a foreign country. These fees are added to the cost of conversion for transactions in foreign currencies.