How does my credit card issuer figure out my exchange rate for purchases in the U.S.?
VISA International converts all foreign transactions to Canadian funds at a preferred exchange rate. All transactions, including credits are also subject to an additional administration fee, presently at 2.5%. This fee is to offset the costs incurred by VISA International and CIBC in offering a worldwide VISA service. It is important to note that a foreign currency transaction is a more expensive transaction than a domestic transaction. Below is an example of the conversion calculation: Original amount of purchase is $50 US Assume the rate of exchange is @ 1.54 Canadian amount $77.00 +2.5% administration fee = $1.93 The total amount recorded on your statement would be $78.93 Cdn. The exchange rate used will vary and may not be that which was in effect at the time of the purchase. If you require any additional information, please contact CIBC Credit Card Services. Refer to “Who do I contact for assistance with my CIBC credit card account?” for contact numbers and hours of operation.
