{"id":258394,"date":"2026-04-22T22:00:56","date_gmt":"2026-04-22T22:00:56","guid":{"rendered":"https:\/\/awardwallet.com\/blog\/?p=258394\/"},"modified":"2026-04-22T19:08:34","modified_gmt":"2026-04-22T19:08:34","slug":"my-overseas-credit-card-charge-was-pricier-than-expected-heres-why-and-how-to-avoid-this","status":"publish","type":"post","link":"https:\/\/awardwallet.com\/blog\/credit-card\/foreign-purchase-exchange-rate\/","title":{"rendered":"My Overseas Credit Card Charge Was Pricier Than Expected \u2014 Here\u2019s Why (and How to Avoid This)"},"content":{"rendered":"

I'll admit: I'm a bit of a nerd. Maybe it's from working as a tax accountant for a decade<\/a>. Maybe I was just born this way. But, I check every credit card transaction even as my wife and I travel the world as full-time digital nomads<\/a>.<\/p>\n

On a recent trip to South Africa, we booked Airlink flights from Johannesburg (JNB) to Skukuza (SKZ) to visit Kruger National Park. That purchase posted to my credit card around $22 higher than I expected. But it wasn't an error, and the purchase posted exactly as it was supposed to — once I referenced the right tool.<\/p>\n

Whether you're planning a large foreign purchase or are just curious how it works, here's what to know about how foreign credit card purchases are converted.<\/p>\n

Basics of How Much Your Foreign Card Purchase Will Cost<\/span><\/h2>\n

First, remember to always use local currency when making a foreign transaction. If you see an option to pay in your home currency (e.g., U.S. Dollars), ignore that option. That price is likely determined using Dynamic Currency Conversion (DCC) — and it's always<\/em> a bad deal. Although there's some ease in knowing the purchase price in your home currency, it's cheaper if you pay in the local currency.<\/p>\n

To convert that local currency price to your home currency, you might assume it's as simple as multiplying the price by the current exchange rate using Google or a currency converter. While that will give you a rough idea of how much you'll pay for the purchase, the charge on your credit card statement is likely to be different — potentially significantly, like in my case.<\/p>\n

The exact exchange rate used depends on the kind of card you have. Thankfully, both Visa and Mastercard have a tool you can use to calculate how much the purchase will cost — even before you tap your card.<\/p>\n

Visa Foreign Exchange Rate Calculator<\/span><\/h2>\n

If you plan to pay using a Visa card, use Visa's Exchange Rate Calculator<\/a> to see exactly how much your purchase will cost you.<\/p>\n

To use this tool, enter the purchase amount in the foreign currency, then select the foreign currency and your home currency. Enter the transaction date — either today if you're about to make a purchase, or a past date if you want to see how a past purchase will post.<\/p>\n

If your card charges a foreign exchange fee, you can enter that fee in this calculator. If you have a credit card with no foreign transaction fees<\/a>, set the bank fee to 0%.<\/p>\n

Finally, click on “Calculate Conversion” to see the charge that should post to your credit card.<\/p>\n

For example, here's how a 135 Australian Dollar purchase on April 15, 2026 would convert to U.S. dollars:<\/p>\n

\"Visa
Screenshot of Visa Exchange Rate Calculator<\/em><\/enter><\/figure>\n

Mastercard Foreign Exchange Rate Calculator<\/span><\/h2>\n

Like Visa, Mastercard publishes a Currency Exchange Rate Converter<\/a> to convert foreign purchases. It works quite similarly. Just enter the foreign currency code, transaction amount, your card's currency, any applicable bank fee, and the date of the transaction. Then, click “Calculate” to see what the cost would be in your home currency.<\/p>\n

One notable limitation is that you can't enter today's date. That means you won't be able to tell exactly what a purchase will cost before using a Mastercard.<\/p>\n

Here's the same example as what I used above for the Visa example: 135 Australian Dollars to U.S. dollars for a purchase on April 15, 2026:<\/p>\n

\"Mastercard
Screenshot of Mastercard Exchange Rate Calculator<\/em><\/enter><\/figure>\n

So, What Happened With My Purchase?<\/span><\/h2>\n

The purchase that started me down this rabbit hole was an Airlink flight purchase costing 10,335.92 South African rand. Based on the exchange rate on Google at the time we priced out this purchase, my wife and I expected the purchase to cost around $624.71. Instead, it posted to my statement at $646.45.<\/p>\n

This $21.74 was enough of a difference that I'd assumed that Airlink must have used Dynamic Currency Conversion — and I was ready to file a claim for the difference. It didn't help that the Bank of America transaction listing only shows the U.S. dollar cost, not the ZAR cost. (Note that the ZAR cost showed up on my statement once my billing cycle closed.)<\/p>\n

\"Bank
Screenshot of Bank of America<\/em><\/enter><\/figure>\n

When I converted the ZAR cost to USD using the foreign exchange rate tool Oanda, it showed that the purchase should've cost $625.21:<\/p>\n

\"Oanda
Screenshot of Oanda<\/em><\/enter><\/figure>\n

But unfortunately for us, the South African rand was going through a period of quick devaluation against the dollar. So, even a few-day difference between the purchase date (March 3) and posting date (March 6) accounted for much of the difference.<\/p>\n

Sure enough, when I plugged in the actual purchase date into Visa's Exchange Rate Calculator, the result was exactly what posted to my credit card statement: $646.45<\/strong>.<\/p>\n

\"Visa
Screenshot of Visa Exchange Rate Calculator<\/em><\/enter><\/figure>\n

Is Visa or Mastercard Better for Overseas Purchases?<\/span><\/h2>\n

In my case, I'd have saved around $9<\/strong> if I'd used a Mastercard instead of a Visa for this purchase. Based on the Mastercard Currency Exchange Rate Converter, a 10,335.92 rand purchase on March 3, 2026 would have been charged as $637.51.<\/p>\n

\"Mastercard
Screenshot of Mastercard Currency Exchange Rate Converter<\/em><\/enter><\/figure>\n

However, Mastercard doesn't always provide a better exchange rate.<\/p>\n

I randomly generated seven possible international purchases. Then I plugged those into both Visa and Mastercard's converters. Here's how they compare:<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t\n\t
Purchase Amount<\/th>Currency<\/th>Date<\/th>Visa<\/th>Mastercard<\/th>Cheaper Option (difference)<\/th>\n<\/tr>\n<\/thead>\n
3.5<\/td>euro<\/td>3\/15\/2026<\/td>4.04<\/td>4.04<\/td>No difference<\/td>\n<\/tr>\n
1200<\/td>Japanese yen<\/td>4\/2\/2026<\/td>7.58<\/td>7.57<\/td>Mastercard (0.13%)<\/td>\n<\/tr>\n
18.75<\/td>British pounds<\/td>1\/10\/2026<\/td>25.23<\/td>25.23<\/td>No difference<\/td>\n<\/tr>\n
9.5<\/td>Canadian dollars<\/td>2\/22\/2026<\/td>6.95<\/td>6.95<\/td>No difference<\/td>\n<\/tr>\n
45<\/td>Australian dollars<\/td>1\/8\/2026<\/td>30.46<\/td>30.31<\/td>Mastercard (0.49%)<\/td>\n<\/tr>\n
2800<\/td>Thai baht<\/td>3\/19\/2026<\/td>86.93<\/td>86.02<\/td>Mastercard (1.04%)<\/td>\n<\/tr>\n
95<\/td>Brazilian reais<\/td>1\/27\/2026<\/td>18.06<\/td>18.25<\/td>Visa (1.04%)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

In these examples, the conversions are essentially the same for most major currencies. The Australian Dollar difference is perhaps the biggest surprise, but it's still a relatively small amount.<\/p>\n

For more volatile currencies — like Thai baht and Brazilian reais — there can be larger differences. Still, the difference is likely immaterial for most travel purchases.<\/p>\n

Best Cards for Overseas Purchases<\/span><\/h2>\n

While we're on the topic of overseas purchases, let's discuss which card you should pack for your next trip. Of course, you'll want to use a card that charges no foreign transaction fees<\/a>. Thankfully, that's a feature on many travel cards.<\/p>\n

Hands down, the best option to use is the Atmos\u2122 Rewards Summit Visa Infinite\u00ae<\/sup> Card<\/strong>. This card earns 3 Alaska points per dollar spent on all foreign purchases. Especially when you factor in the value of Alaska points<\/a>, this card simply can't be beat for overseas purchases.<\/p>\n

Otherwise, the best card to use depends on the type of purchase you're making. If you're buying groceries or filling your rental car tank, that might be the Citi Strata Premier\u00ae<\/sup> Card<\/a> (Rates & Fees<\/a>).<\/p>\n

\n
\n
\n
Citi Strata Premier\u00ae<\/sup> Card<\/div>\n
\"Citi<\/div>\n
Apply Now<\/a><\/div>\n
Rates & Fees<\/a><\/span><\/div>\n
Welcome Offer<\/strong>\r\nEarn 60,000 bonus ThankYou\u00ae<\/sup> Points after spending $4,000 in the first 3 months of account opening, redeemable for $600 in gift cards or travel rewards at thankyou.com.<\/div>\n <\/div>\n
\n Citi Strata Premier\u00ae<\/sup> Card<\/strong>\n
Welcome Offer<\/strong>\r\nEarn 60,000 bonus ThankYou\u00ae<\/sup> Points after spending $4,000 in the first 3 months of account opening, redeemable for $600 in gift cards or travel rewards at thankyou.com.<\/div>\n
Annual Fee:<\/strong>$95<\/b><\/div>\n
Show more<\/a>Why We Like It<\/a>Highlights<\/a>Earning Rates<\/a>
The Citi Strata Premier\u00ae<\/sup> Card offers some of the best earning rates of any rewards card with an annual fee under $100. This card offers excellent rewards on an unusually generous list of earning categories, including air travel, hotels, car rentals, groceries, and dining\u2014and it tops our list of the best cards for gas & fuel purchases<\/a>. <\/div>