Are there any differences in terms of authorisation process, fees and charges imposed when I use my credit card to make purchases locally or overseas? How is the exchange rate determined?
The authorisation process, fees and charges are the same when you make purchases using your credit card regardless of your location.
However for purchases made overseas, the transaction amount is subjected to the exchange rate determined by the credit card payment schemes (eg. Visa and MasterCard).
The conversion of currencies will be done automatically when the transactions are made.
The exchange rate is normally determined based on the mid-point of the prevailing buying and selling rates of the exchange of foreign currency against Ringgit.
Reprinted with permission from BankingInfo (A Consumer Education Programme)
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