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What is the repayment of foreign exchange purchased by credit card, and what are the processing conditions?
What is the repayment of foreign exchange purchased by credit card, and what are the processing conditions?

What is the repayment of foreign exchange purchased by credit card?

Credit cards or other types of bank cards held by cardholders have the function of overseas use (that is, cards that support foreign currencies). In consumption abroad (mainly for overdraft consumption), cardholders can repay their debts in RMB after returning home. In layman's terms, changing RMB into foreign currency is called "purchasing foreign exchange". Buying foreign exchange is also repayment, so it is called repayment by purchasing foreign exchange.

What are the conditions for repayment of foreign exchange purchased by credit card?

Automatic purchase of foreign exchange for repayment is not always possible. First, you have to hold a dual-currency card. Secondly, you can't apply for a foreign currency account without balance, debt or deposit.

What should I pay attention to when purchasing foreign exchange by credit card?

1. The automatic foreign exchange purchase and repayment function of credit card will take effect permanently upon application. If the cardholder does not take the initiative to cancel the account, once the foreign currency account has consumption, it will still give priority to repayment to the foreign currency account in the current month. This will bring inconvenience to small partners who are anxious to use RMB accounts.

2. When purchasing foreign exchange for repayment automatically, the banking system will automatically make payment according to the issuing bank (note! It is the issuing bank, not the central bank). The latest exchange rate released on 10 that morning shall prevail, not the exchange rate on the consumption day. So it's normal to have some small fluctuations up and down.

3. Some banks need to call the customer service of the issuing bank to apply for automatic foreign exchange purchase before the monthly repayment date. It is recommended that friends call the issuing bank in advance for consultation.

4. In addition, there will be some differences between banks in terms of automatic foreign exchange purchase and repayment, so it is recommended to make a decision after knowing clearly before opening.