What is the currency conversion fee?

Currency conversion fee is a fee of banks and credit cards on transactions that are carried out in a foreign country. These fees are charged in addition to foreign ATM fees. Fees can also stack, with the currency of the currency charged by a card company such as Visa or MasterCard, as well as the bank that issued the card. The fees are controversial because many consumers do not know about them before they are charged, and fees are often merged with a transaction in a statement so that the amount of the fee is difficult to recognize. Banks and credit card companies use currency conversion fees to maintain profits due to the growing regulation of other types of fees. Visa and MasterCard charge a 1 percent fee and banks add a fee to this number. A total of about 3 percent. The fee must be explained in the terms of the contract “Customer violations will therefore know what percentage they will be charged for foreign purchases. However, they may not be able to determine which infectionPy qualify for a fee.

Originally, the currency conversion fee only applied to a transaction in a different currency than in US dollars. Traders began to make transactions in dollars to calm customers and make profits themselves using exchange rates that were unfavorable to the customer. Banks responded by billing the fee for each transaction that occurred in a foreign country. When customers make purchases online, the usability of the fee depends on the country in which the transaction is processed.

Some consumers complained about the lack of transparency of banking policies concerning fees. For banking statements, the fee is often associated with a transaction instead of a currency conversion fee that has its own line. Tenthihou lead some customers to overlook the fee. Others do not know about the existence of fees until they are charged.

It is possible to avoid fees. Some banks do not have their ownown currency conversion fee; They only charge a 1 % fee that causes a visa or a mastercard. Other banks, such as Capital One, carry the burden of the card provider to provide their customers with the ability to make foreign transactions without a currency transfer fee.