When making payments abroad or in foreign online shops, have you ever been asked to choose whether the amount should be charged in Swiss francs or in the respective local currency? This page explains why it might be worth it to pay in the local currency.
Making payments abroad or in foreign online shops
As soon as you use your credit card at the payment terminal or enter your credit card details online, the payment system recognises the currency in which your credit card is billed.
If your Viseca credit card is billed in Swiss francs and you are in Spain, for example, the merchant will give you a choice between paying in CHF or EUR.
If you choose the foreign currency, i.e. EUR, this is automatically classed as a foreign currency transaction.
A small decision during payment that makes a significant difference to your bill
It may seem convenient to pay in your usual currency (CHF), as it means the price will not need to be converted.
However, this option can be more expensive than paying in the respective foreign currency. Why? The CHF amount displayed is based on a foreign currency conversion that is usually performed at a significantly higher rate than the current exchange rate.
It makes no difference whether you are paying in store, shopping online or withdrawing cash from an ATM.
Where do the hidden surcharges come from when paying in CHF?
The option to display the final amount in CHF is called dynamic currency conversion or DCC.
If you select CHF, a third party (known as an acquirer) will set the exchange rate. This often comes with a surcharge of up to 10 per cent above the current exchange rate, for example EUR 1 = GBP 1.02 instead of GBP 0.93.
Not only does the high exchange rate applied by the acquirer incur unnecessary additional costs, it will also not be listed separately on your bill.
How Viseca converts foreign currency amounts
If you pay in a foreign currency (e.g. EUR), Viseca will perform the conversion – usually at a more favourable exchange rate than that offered by an acquirer. The rate is set once a day based on the standard market values.
For every transaction in a foreign currency, you will find the following information on your monthly statement and in the “one” app:
- the respective exchange rate,
- the date of the conversion and
- the processing fee.
The processing fee varies depending on the card. Detailed information can be found in the fee overview.
Be careful with online shops: it is not always obvious that they are foreign merchants
Many online shops appear Swiss at first glance, for example because the website address ends in .ch address or the prices are quoted in CHF.
However, the decisive factor is their place of business, which should be stated in the legal notice or their terms and conditions. You should be able to change the currency to the local currency of the shop by the time you pay at the latest.
Further information and answers
You can also find helpful information about foreign currencies and travelling with your credit card at mycard.ch. See the following articles for examples:
Tips and tricks for paying in foreign currencies (in German)
The best credit card tips for your holidays (in German)
Gold and Platinum cards: the best travel companions (in German)
If you have any questions about transactions, please contact our customer service team directly.
Detailed information can be found in the General Terms and Conditions.