Finance, Forex and Investments

When you use a credit card in a foreign country do you get charged the exchange rate?

I'm from the US and am going to Canada. If I use my credit card or debit card and something in Canada costs $50 Canadian will I be charged whatever the US exchange rate is on my statement?

Public Comments

1. You'll usually be charged the Interbank rate +2%. That's what most credit cards charge. You can get the exchange rates at this site: http://www.oanda.com/convert/classic
2. You will be charged Canadian dollars and then when you get your statement the credit card company will convert Canadian to U.S. via an exchange rate which will be industry average. Remember, the Canadian dollar has appreciated much against the U.S. dollar. $50 Canadian will be around $43 U.S.
3. The posting to your account will be in US dollars. Be aware that most card issuers assess an international service fee of atleast 1% for transaction done in other countries when the transaction passes through Visa and Mastercard. I have seen some issuers charge 3 - 4%. Check your disclosure. Some credit unions are not assessing the fee.
4. You'll be charged at the bank rate.
5. When you use your credit card (I've always used American Express) the bill you receive is based on the current exchange rate. Our son and his family live there so we know the rate is not as "gracious" to us as it used to be. Ten years ago you gained about 36 cents on the American dollar, but now you're lucky if it's 10-15 cents. Enjoy your trip!