what is a dual-currency credit card?
Dual-currency credit cards mainly provide convenience for consumption abroad, and are of little significance to domestic residents unless they go to duty-free shops.
The other currency of dual currency must be freely convertible in the international market, such as USD, JPY, EUR, etc.
ATMs /POS machines in every country can only withdraw/swipe local currency, and China has foreign exchange control, so RMB credit cards cannot be used abroad. Dual-currency credit card holders can spend money abroad, because the circulating foreign currencies can be freely exchanged, so as long as there is a foreign currency (such as US dollars), the cardholder's capital needs in any country can be met.
What does a dual-currency credit card mean?
A dual-currency credit card is a credit card with RMB and USD (Euro) settlement accounts, and its function is basically the same as that of a single-currency credit card. Dual-currency card is a kind of bank card that has only appeared in recent years. With the continuous development of economy and the continuous improvement of people's living standards, traveling and shopping abroad has become a very common thing, thus forming a widespread demand for bank cards settled in foreign currency. Dual-currency credit cards came into being.
Many domestic banks have successively cooperated with international bank card organizations such as VISA (VISA) and MasterCard (MasterCard) to launch bank cards with RMB and USD settlement functions. In China, RMB settlement can be realized through UnionPay. After going abroad, they can spend and withdraw cash at merchants and bank ATMs that support Visa or MasterCard, and settle in USD.
There are two kinds of dual-currency credit cards: RMB-USD and RMB-EUR. The former is more common, because many countries in the world still settle accounts in USD, so it is more convenient. However, if you are spending money in Europe, you need to convert it once more with a RMB-US dollar credit card, and you will have to pay the conversion fee once more. The RMB-Euro credit card can be directly converted from Euro to RMB.
At present, the foreign exchange has not been fully liberalized, and the dual-currency card has brought convenience to people's consumption settlement for outbound travel. Make RMB and foreign currency freely convertible within a certain amount.
what does a dual-currency credit card mean?
a dual-currency credit card is a credit card with the UnionPay logo, which can be used to pay by swiping through the UnionPay channel, and with the logo of other card organizations, which can be used to pay through other card organizations. Usually, it corresponds to two accounts of RMB and foreign currency. The more common dual-currency credit cards are UnionPay Visa, UnionPay Mastercard and UnionPay JCB.
according to international practice, a card can only belong to one bank card organization, and the card organization is responsible for the transfer and clearing. Dual-currency credit card is the product of the transitional period before the opening of RMB transfer clearing market. Once visa or MasterCard has obtained relevant qualifications, it can require commercial banks to go through their own channels for RMB transfer and clearing.
in other words, visa or MasterCard single-label cards issued by foreign-funded clearing institutions with corresponding clearing qualifications, such as visa or MasterCard, can also be directly swiped in RMB in China.
extended information
1. At present, there are two bookkeeping methods for dual-currency credit cards. One is that foreign currency and RMB are recorded separately, and two bills are issued, and the cardholder needs to repay separately in RMB and foreign currency.
the other is foreign currency consumption, which is recorded in RMB. Usually, at the time of settlement, the card issuing organization converts the local currency consumed by the cardholder into US dollars, and then directly records it into RMB account. The exchange rate generally uses the exchange rate of RMB against the US dollar on the day of consumption, and the cardholder only needs to pay back RMB.
it is more convenient to repay if it is recorded in RMB, but if it is recorded in USD, you need to purchase foreign exchange for repayment. Cardholders can deposit US dollars directly before the repayment date, and those without US dollars need to purchase foreign exchange manually.
2. When you use a dual-currency credit card in consumption abroad, you should also pay attention to the currency conversion fee. If you use a US dollar card to spend money in the euro area, this so-called currency conversion fee will be generated, usually 1.5% or 1.75%.