Can I Use a Credit or Debit Card for Currency Exchange?

There’s no shortage of options when sending money around the globe or making overseas purchases, thanks to currency exchange. From credit cards and debit cards to bank transfers and services like PayPal, each possibility comes with various fees and costs — some more hidden than others. This can make figuring out the best financial and logistical move complicated.

Since most people have a credit card, it’s the obvious choice for spending or sending money overseas. While credit cards convert currency, payment networks like Mastercard and Visa set credit card exchange rates that can impact how much your money is worth when converting between local and foreign currency.

You must also weigh any additional costs charged by card issuers and merchants. Whether buying clothes online from an overseas store or renting a car during an international vacation, foreign transaction fees can add substantial costs to your purchase.

Ready to learn more? Here, we delve into how credit cards work around the complex world of currency exchange, helping you understand the costs and how to avoid them. With Ria Money Transfer making it possible to send money overseas for low fees, it’s easy to make the most of your credit card.

How to Save When Using Credit Cards Internationally

Making a purchase overseas with your credit card only to discover you’ve been stung by several costly fees is a frustrating experience. Although card issuers, merchants, and payment networks want their cut, avoiding some fees is easier than expected. If you regularly send money overseas, taking the time to understand your options could save you significant amounts in the long run.

Choose No Transaction Fees

Perhaps the greatest expense when sending money overseas with a credit card is international transaction fees. The bank or financial institution that issued your card applies these, with fees typically ranging from 1% to 5% of the purchase price. If you’re on vacation making purchases between restaurants, shops, and hotels, you can imagine how fast the extra costs add up. 

Fortunately, numerous card issuers offer credit cards with no foreign transaction fees. Naturally, this benefit can help you save significantly if you often convert money overseas. However, with some card issuers offering better currency exchange rates than others, you’ll want to choose a provider that strikes the right balance. Don’t forget to consider your card issuer’s annual fees, too.

Reject Dynamic Currency Conversion

When overseas making in-store purchases, you’re bound to encounter dynamic currency conversion (DCC). This is where travelers can choose to purchase in their home currency rather than the local one. Understanding the cost of purchases made in a foreign currency can be confusing, and DCC intends to simplify this process for customers using their credit cards overseas.

However, electing to use DCC means an additional payment network fee, typically around 1% of the total purchase price. The merchant might even include additional charges on top of DCC. To save money when making purchases overseas, use a foreign exchange app for a close estimate of how much you’re spending. Then, say no to DCC and pay in local currency.

How Currency Exchange Rates Impact Credit Card Fees

International transaction fees are often the clearest cost to understand when spending money overseas. If your credit card has foreign transaction fees, this additional cost is usually outlined when you sign up. However, what’s less clear is how foreign exchange rates impact your costs, as these fluctuate continuously based on several complex factors.

At a global level, foreign exchange rates are crucial for how every country operates. These rates speak to the health of a country’s economy and determine how effectively it can import and export goods. With most countries using a “floating” exchange rate, a higher demand for the currency typically equates to a higher value.

Every time you use your credit card overseas, the foreign exchange rate at that moment determines how much value you get for your money. For simplicity, you can find up-to-date mid-market exchange rates using Google or a service like Xe.com. However, know that this price doesn’t represent the whole picture.

As your card issuer might build in various profit margins, fees, and markups when converting currency, the foreign exchange rate available to consumers doesn’t match the mid-market rate accessible to large financial institutions. However, as some credit cards offer more competitive exchange rates than others, you can shop around for the best deal.

Making the Most of Foreign Currency Exchange Rates

Navigating ever-shifting foreign exchange rates with credit cards doesn’t have to be difficult. With a little research into how the rates are calculated and what you can do to take advantage, you can get more value for your money. 

Know Your Options

Whether sending money overseas to friends and family or researching credit card providers for your next holiday, getting to know the options available ensures you make an informed choice. Banks and services like PayPal can include substantial markups on the mid-market exchange rate, so consumers who assess their options can achieve significant savings.

Research the Rates

You can’t make an informed decision about foreign exchange rates if you don’t know where the current price stands. Conduct a quick search for the current exchange between your home country and destination to find the mid-market rate. Then, review your options to discover which service offers the best deal for your needs.

Focus on the Right Rate

The world of foreign exchange is undoubtedly complex, meaning it’s easy for newcomers to get confused about the information they need. Rather than getting lost in spot rates or money rates, simply pay attention to the mid-market rate. Although the actual rate for consumers will include various markups and fees, the mid-market rate provides a helpful guide.

Measure the Total Cost

When you want to pay the best rate when converting currency, you can’t just pay attention to foreign exchange rates. Each financial institution will include its fees, markups, and commissions, making a seemingly competitive exchange rate less so. Always review the total cost before sending money overseas with a specific provider.

Banks Aren’t Always Best

The obvious place to start when sending or spending money overseas with your credit card is your bank. However, the foreign exchange rates provided by banks sometimes represent poor value for money. So, why do consumers use them to send money? Some prefer convenience and credibility, even if they’re not getting a great deal.

Lock in Favorable Rates

While a credit card is often the easiest solution for spending money overseas, some financial products like pre-paid travel cards allow consumers to purchase foreign currency ahead of their journey. If the currency conversion rates are favorable, it can make sense to exchange your money now. This way, you won’t feel the impact if the exchange rate drops while overseas.

Ria Money Transfer: Exchange Currency With Low Fees

Need to send money to friends and family overseas? Doing so with your credit card is painless with Ria Money Transfer. Featuring competitive exchange rates, transparent fees, and fast and secure transfers, sending money to over 190+ countries has never been simpler. Here’s what makes Ria incredible for sending funds around the globe.

Low and Transparent Fees

Ria Money Transfer is appealing because we offer low and transparent fees. While banks and other financial institutions obscure the true cost of converting currency through international transfer fees and profit margins attached to exchange rates, Ria provides a stellar service without the high price.

This way, when you send money to loved ones overseas using your credit card to convert currency, you’re getting significantly more value for your money. In fact, the cost of using Ria to send money to over 165 countries can be as low as USD 2.89. Now trusted by over 100 million customers, Ria is a stellar way to send money abroad.

Clear Exchange Rates

Even when the exchange rate is strong between your home currency and the destination country, you might not be getting great value for your money. Credit card issuers’ margins can add anywhere from 1% to 4% to your costs.

When you use Ria Money Transfer to convert currency using your credit card, our great exchange rates mean you won’t have to worry about losing your funds to a host of hidden fees. Plus, our easy-to-use currency converter calculator helps you swiftly explore how much it costs to send money overseas.

Fast and Global

Everyone wants their funds to arrive promptly when converting and transferring money abroad. Ria Money Transfer is remarkably fast. If you use a credit card or debit card to send money to us, it can arrive in as little as 15 minutes. Then, we work quickly to get it moving in the right direction.

You’ll also be happy to know Ria can help your money arrive safely and securely in more than 190 countries and territories. With over 500,000 pickup locations in every corner of the globe, transferring funds to friends, family, and businesses has never been easier.

Send on the Move

You don’t need to sit in front of a computer or stand in a queue to convert currency with your credit card and get it moving overseas. Ria’s powerful Android and iOS apps make it simple to send money online from wherever you are.

Like you can on a desktop or in store, you can check up-to-date exchange rates, choose how the recipient receives the money, start the transfer, and share the details to keep everyone in the loop. Perfect for when you’re traveling or in a rush, Ria’s apps have got you covered.

Round-the-Clock Security

Ria is fast and affordable, but that doesn’t mean we compromise on security. We safeguard our highly secure service using numerous sophisticated security protocols, as keeping your money safe will always be our top priority. Whether you’re converting currency using a credit card or another method, we take every step to protect your money. 

For example, Ria never stores credit card data on our servers, meaning only you can access your private banking information. We also require recipients to complete our identity verification process when receiving cash in person. Our security team works around the clock to identify fraudulent and suspicious behavior to protect our customers.

Even More Payment Methods

Converting money and sending it abroad is simple with a credit card or debit card. However, if you use Ria Money Transfer to make payments, you have even more options to consider depending on your location and whether you’re using the website or app.

In some countries, you can fund your transfer using cash or several digital payment methods, such as iDEAL in the Netherlands or Klarna in Austria, Germany, and Spain. Get to know your payment options and benefit from hassle-free international transfers.

Convert and Send Money With Ria

Discover what makes Ria Money Transfer the ideal choice for millions of customers looking to convert and send money abroad. With a fast, secure, and affordable service, using your credit card to fund your transfer to over 190 countries and territories is easy. 

Then, you can choose various delivery options, from bank deposits and cash pickups at authorized locations to mobile wallets and home delivery in specific locations. Alongside low and transparent fees, Ria is unbeatable for international transfers.

Credit Card Currency Exchange FAQs

To learn more about Ria Money Transfer, browse our frequently asked questions or contact our friendly team.

Do credit cards convert currency?

Yes, you can use a credit card to convert currency. Payment networks like Visa and Mastercard use their own credit card exchange rates to automatically convert foreign currency to domestic currency.

What exchange rate do credit cards use?

The exchange rate used by credit card payment networks like Visa and Mastercard is always changing. You must also consider foreign transaction fees and services like dynamic currency conversion to understand the full cost of converting money.

Do credit cards with no currency exchange fees exist?

Yes, some card issuers waive currency exchange fees for their customers. However, remember to consider annual card expenses, overseas ATM withdrawal fees, interest rates, and uncompetitive foreign exchange rates to understand the costs involved.