I just came back from abroad. I have a lot of credit card overdrafts. My RMB account is enough to pay off the foreign currency account. I thought I didn’t have to worry about it, but I found that the money in the RMB account will not be repaid automatically. At this time You need to activate the credit card foreign exchange purchase service.

What is credit card purchase of foreign exchange?

As we all know, a dual-currency credit card has two accounts, one is a RMB account and the other is a foreign currency account. If you use a foreign currency account to consume or withdraw cash overseas, you cannot directly use RMB to automatically repay the foreign currency after you return home. You must Repayment is done by purchasing foreign exchange, which actually means using RMB to purchase foreign currency.

If a cardholder uses a dual-currency card to make purchases overseas and directly deposits RMB into the credit card for repayment, he cannot repay the debt in the foreign currency account. This is because the RMB and foreign currency bills of the dual-currency credit card are Separately, if you want to repay foreign currency debts directly in RMB, you must activate the automatic foreign exchange purchase business, so that the cardholder's RMB repayments can automatically purchase foreign exchange and convert it into US dollars to repay foreign currency debts. This is the so-called automatic foreign exchange purchase by credit card. Repayment.

If the cardholder does not activate automatic foreign exchange purchase and repayment, he can only repay the debt through direct deposit of foreign currency. At the same time, when repaying foreign exchange to a credit card through online banking, you also need to activate the foreign exchange repayment function in advance

How to enable automatic foreign exchange repayment with a credit card?

There are many ways to activate credit card automatic foreign exchange purchase and repayment service, such as activating when filling in the application form, activating via customer service phone, activating via SMS application, etc. The details are as follows:

1 . Activation of application form: Most banks have opened the "automatic foreign exchange purchase" service. When applying for a dual-currency credit card, applicants only need to check this service on the application form to activate it.

2. Customer service hotline activation: Cardholders can use the reserved mobile phone number to call the card issuer's 24-hour customer service hotline, and the manual service will be activated. It will generally take effect within 3 working days after activation.

3. SMS activation application: Cardholders can use the mobile phone number registered with the card-issuing bank to edit relevant text messages and send them to the card-issuing bank's fixed service number to apply for activation, which will take effect immediately.

Are there any handling fees for automatic foreign exchange purchase and repayment?

After cardholders use the foreign currency account of a dual-currency credit card to make purchases, they must use RMB to purchase U.S. dollars, and then use U.S. dollars to transfer to the foreign currency account. In this way, they may face a foreign exchange fee of 1.3 to 1.7.

If automatic foreign exchange purchase and repayment is enabled, there is no need to charge currency exchange fees, which can provide certain repayment convenience for cardholders who use credit cards abroad. The above is some information I know about credit card purchases of foreign exchange. I hope it can be helpful to everyone.