Why did the amount of my foreign transaction change?

Updated 3 months ago by Yacine Sahnoune

After each Lydia payment, you receive an alert and a payment receipt showing the amount in Euros. However, in the event of foreign transactions, the amount may decrease or increase a few days later.

This article only applies to payments made at the real Mastercard or Visa exchange rate with the Lydia card. In some cases, when you pay or withdraw money at an ATM overseas, you may be asked if you agree to let the retailer's or distributor's bank do the currency conversion. A word of advice: always choose "NO” at this stage to benefit from the real Mastercard exchange rate. Otherwise, you could end up paying significant foreign exchange fees.

Why did the amount I paid change? 🤔

When you make a payment, the money is never immediately taken from your account. There are two steps:

  1. Authorisation: Via Mastercard or Visa, the retailer's bank sends a payment authorisation request to the bank of the payment method’s holder (Lydia card, contactless mobile payment or Internet card). The amount is immediately locked on your account
  2. Settlement: a few days later (1 to 10 days), your bank and Mastercard or Visa transfer the funds from your account to the retailer’s bank account.

The Mastercard or Visa exchange rate may change between those two steps. This affects the amount paid. The amount will be updated in the Transaction History and on the payment receipt.

When the amount paid increases 📈

During this time frame of 1 to 10 days, the Mastercard or Visa exchange rate may go up.

For example, for a "fish and chips" that cost you £10 (10 pounds) in London:

  • On Monday, day of the authorisation, £1 is worth €1.13. You pay €11.3
  • On Thursday, day of the settlement, £1 is worth €1.15. It means your "fish and chips" is now worth €11.5.

20 cents will be charged directly on your Lydia account. The payment receipt will show the updated amount.

When the amount paid decreases 📉

During this time frame of 1 to 10 days, the Mastercard or Visa exchange rate may go down.

For example, for a night in a hotel paid 2,000 baht in Bangkok:

  • On Monday, day of the authorisation, 1 baht is worth €0.028 Euros. You pay your night €56.
  • On Thursday, day of the settlement, 1 baht is worth €0.027 Euros. The hotel night is now worth €54.

€2 will be credited to your Lydia account. The payment receipt will show the updated amount.

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