Foreign exchange fee. What are they?
A foreign exchange fee is charged to your card when a transaction is made with an overseas merchant or in a currency denomination other than the denomination of currency on your card. These fees usually consits of two part:
- Network fee: These are fees that are charged by the payment network i.e. Visa or Mastercard. They both charge a flat fee of 1%. Regardless of the type of card, this fee is applied to all foreign transactions.
- Issuing bank fee: This is a charge on top of the network fee, usually around 2% (though these may vary as well depending on the issuer)
For our part, a foreign exchange fee of 2.5% for the converted amount will be charged to your card per transaction.
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