Free App

Free App
30 Second Real Estate Analyzer


How does the credit card issuer calculate exchange rates for purchases outside of Canada?

VISA International converts all foreign transactions to Canadian funds at a preferred rate. This rate also includes a conversion fee, presently at 2.5%, which offsets the costs incurred by VISA International and CIBC in offering a comprehensive worldwide VISA service, as international transactions are more expensive to process than domestic transactions. The exchange rate is set at the time of purchase, and it will vary according to the date and time of the transaction.

Below is an example of the conversion calculation:

Amount of purchase is $50.00 USD

The rate of exchange is @ 1.54
Canadian amount = $77.00 CAD
+2.5% conversion fee = $1.93
$78.93 CAD

The total amount recorded on your statement would be $78.93 CAD