A dual-currency credit card is a credit card that bears the UnionPay logo and can be paid through the UnionPay channel, and also bears the logo of other card organizations and can be paid through the payment channels of other card organizations. It usually corresponds to RMB + foreign currency. account, the more common dual-currency credit cards include UnionPay + Visa, UnionPay + Mastercard, UnionPay + JCB, etc.

According to international practice, a card can only belong to one bank card organization, and the card organization is responsible for transfer and clearing. Dual-currency credit cards are a product of the transitional period before the opening of the RMB transfer and clearing market. Once visa or Mastercard obtains relevant qualifications, they can require commercial banks to use their own channels for RMB transfer and clearing.

In other words, in the future, visa or MasterCard single-label cards issued by visa or MasterCard and other foreign-funded clearing institutions with corresponding clearing qualifications can also be settled in China directly in RMB.

Extended information

1. Currently, dual-currency credit cards have two accounting methods. One is that foreign currency and RMB are entered into the account separately, and two bills are issued. The cardholder needs to pay separately in RMB. and foreign currency repayments separately.

The other is foreign currency consumption, which is recorded in RMB. Usually during settlement, the card issuer converts the local currency consumed by the cardholder into US dollars, and then converts it into RMB and directly records it into the RMB account. The exchange rate is generally used on the day of consumption. The exchange rate of RMB against the US dollar means that cardholders only need to pay back RMB.

If the account is denominated in RMB, repayment is more convenient, but if the account is denominated in US dollars, you need to purchase foreign exchange for repayment. Cardholders can directly deposit U.S. dollars before the repayment date. If they do not have U.S. dollars, they need to purchase foreign exchange manually.

2. When using a dual-currency credit card to make purchases abroad, you should also pay attention to the currency conversion fee. If you use a U.S. dollar card to make purchases in the Euro area, this so-called currency conversion fee will be incurred. Usually 1.5% or 1.75%.

Baidu Encyclopedia-Dual Currency Credit Card