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Did you face a situation that you are travelling in a foreign country and you cannot do anything but to use your credit card for your purchase? Well, I have done it many times and it’s a bit strange for me that the conversion rate is always high compared to the prevailing market rate. Upon my research, I found that credit card company charges 3.525% on all my foreign transactions. Did you know that it is hard to earn 3.525% in any investment portfolios. Forex might be different of course.

Foreign Transactions – All charges made in foreign currencies will automatically be converted to Philippine on the posting dates at the prevailing exchange rate determined by Via/Mastercard. A fee up to 3.525% will be imposed on the converted amount which represents our service fee and assessment fees charged by VISA/Mastercard.

The above information answers my query about the high exchange rates when purchases are being converted. What more if this expense were not been paid immediately? The said expenses will incur 3.5% interest or based on the prevailing interest rate of your credit card company.

This is just a reminder for using your credit card for foreign transactions. This also applies if you are using your credit card for online payment which is normally using US Dollar.