What You See is What You Get – Currency Conversion Made SimpleAugust 20, 2020 | Purchase, NY | By Seth Eisen
On August 11th, Mastercard took steps to create greater transparency and certainty around currency exchange for both consumers and the banks that issue our cards with the launch of FX Rate Lock. Under this new program, we’re offering our issuers the guarantee that one exchange rate will be applied throughout every step of a transaction.
In the past, when you or I made a purchase in another currency – whether shopping online or for a souvenir while traveling – the exchange rate on our statement may have been different than expected.
With this new service behind the scenes, that confusion is a thing of the past.
We all know that exchange rates fluctuate day to day. We’ve long published them on our website in the interest of transparency.
Few people think about the steps that take place in a transaction, often faster than a blink of an eye. But, because the purchase may not be processed for a day or two, different rates may have been applied during processing. Not anymore.
After months of consultation with banks, merchants, travel groups and others, we have taken the guesswork out of the process by changing how our network applies the foreign exchange conversion rates. This helps to simplify the process for your bank, the merchant’s bank and the merchant to ensure that what you pay today will stay the same, regardless of changes in exchange rates tomorrow.
If your bank applies Mastercard exchange rates for international purchases, it’s a win-win for both you and your bank. No surprises, no uncertainty, from checkout to the monthly statement. And there’s no need to wait. It’s real and it’s live right now.
So, enjoy that new purchase you’ve made with even greater peace of mind and certainty.