Visa Hong Kong | Foreign Currency Exchange

Foreign Currency Exchange

Visa is committed to providing cardholders with a safe, convenient and cost-effective way to pay when traveling internationally. Click here to access our currency converter. Below are some answers to frequently asked questions about Visa's exchange rate and currency conversion.

Will the rates shown be the rates charged to my account?

The exact rate you are charged depends on when the transaction is posted to the Visa system, which may be later than the day on which you made a purchase, depending on how promptly each merchant handles their Visa transactions. Also, different banks charge different mark-ups for cross-border transactions; some impose no mark-ups or fees. If you frequently travel internationally, the different pricing structures charged by issuing banks should be one of the factors you take into consideration when you select the Visa card that best suits your needs.

How does Visa calculate its rate?

Every day, except weekends, Christmas Day and New Year's Day, Visa calculates the rate for the next day's transactions. The Visa rate is selected from a range of rates available in wholesale currency markets or the government-mandated rate in effect one day prior to the applicable central processing date. Visa makes this rate available to issuing banks, which may adjust the rate in billing cardholders. The rate Visa makes available to issuing banks may vary from the rate Visa itself receives.

How accurate are the rates?

The rates you are shown are from Visa's internal database for foreign exchange rates and are updated daily. However, they are only meant to serve as an indication of the rate you could expect to receive from your issuer. As exchange rates change constantly, the rate is only accurate for one day. The exact rate you are charged depends on when the transaction is posted to the Visa system which may be later than the day on which you paid, depending on how promptly each merchant handles their Visa transactions.

How do I find out if my bank marks up the Visa rate?

Different banks charge different mark-ups for cross-border transactions; some impose no mark-up or fees. If you frequently travel internationally, the different pricing structures charged by issuing banks should be one of the factors you take into consideration when you select the Visa card that best suits your needs. You should contact the bank that issues your card to learn more about the charges you may incur when using your Visa card internationally.

What is Dynamic Currency Conversion?

Dynamic Currency Conversion (DCC), also referred to as Cardholder Preferred Currency (CPC), is a service offered by merchants – not Visa - in some countries when you are traveling abroad. If you choose to use the DCC service, the merchant will convert the purchase price of goods or services at the point of sale from the currency in which the price (i.e., the merchant’s local currency) is displayed into another currency (i.e. your home currency) using an exchange rate that typically includes a service fee.

Here’s an example of a DCC transaction:
A U.S. Visa cardholder is in Singapore and decides to purchase a box of chocolates priced at SGD 20. At checkout, the merchant offers the cardholder the option to pay in USD using a DCC service.

The merchant dynamically converts the SGD transaction amount to USD 15.80. The DCC transaction amount and transaction currency (in USD) are disclosed to the cardholder. An exchange rate of 0.79 (1 SGD = .79 USD), which includes a 2.5% mark up (over a wholesale exchange rate) and the 2.5% commission/fee/mark up are also disclosed to the cardholder.

The cardholder actively chooses DCC by checking a box on a printed receipt or pushing a button on an electronic screen and agrees to pay USD 15.80 for the box of chocolates using the exchange rate provided by the merchant that includes a 2.5% fee for the DCC service.

If you do not want to use DCC when making a purchase, then you have the right to refuse the offer and have your transaction billed in the merchant’s local currency, which will then use Visa’s conversion rate. If you did not agree to DCC, but see it on your bill, then you should ask your issuing bank to contest the charge.

Has Visa changed its fee structure for international transactions?

From 1 April 2005, Visa assesses a one percent International Service Assessment (ISA). The ISA is not a currency conversion fee but a charge to issuers when transactions use the global payment system. The ISA is charged to issuers on same currency, cross-border transactions like DCC. Visa no longer charges issuers the one percent multicurrency conversion fee. It is important to note that issuers determine the cardholder pricing structure. Some banks charge mark-ups for same-currency cross-border transactions; others do not. If you frequently travel internationally, the different pricing structures charged by issuers should be one of the factors you take into consideration when you select the Visa card that best suits your needs.

Navigation