Imagine you take a long taxi ride in Mexico City that costs you $MX800. Back home, your bank statement shows a dollar amount that doesn't quite match the amount you expected based on the current USD-MXN conversion rate. This variance largely comes from credit card exchange rates, which affect the total cost of almost every card payment made in a foreign nation.

Credit card exchange rates are set by card networks like Mastercard and Visa to help pay for the conversion of foreign currency into your home currency. These rates are one of a few hidden costs you may encounter as you buy goods overseas with your card. Knowing each of these fees can help you better estimate the total cost of a business trip, which can in turn prepare your accounting team for unexpected values as they balance the books at the end of the month.

We wrote this article to break down what credit card exchange rates are, how they differ from foreign transaction fees, what dynamic currency conversion is, and how to minimize what you pay on cross-border purchases. If you’re looking for a card that can help you save money when traveling abroad, check out the Slash Visa® Platinum Card, which comes with a low 1% (min. $0.40) foreign exchange fee.\* As you make purchases with a Slash Card, each expense can be automatically categorized, checked for fraud, and automatically synced with your accounting system.

Credit Card Exchange Rates: What You're Really Paying