Exchange rates applied to payments abroad

Updated 2 months ago by Clifford Christophe

Users can pay and withdraw money worldwide without exchange fees using one of the Lydia payment methods (Lydia card, contactless mobile payment, Internet card). For each transaction, the actual amount corresponding to the payment or withdrawal is debited. Nothing more.

For Lydia Free users, fees defined by their subscription limits apply on all ATM withdrawals.

What does "No exchange fees" actually mean? 🤔

In addition to commissions on payments and withdrawals outside the Eurozone, some banks use their own exchange rate. Just as the same as in an exchange office, these banks buy currencies and then sell them at a higher price to their customers.

Conversely, Lydia applies the real Visa exchange rate, an exchange rate with no added costs, which is one of the most used in the world.

Good to know before paying or withdrawing money abroad: the merchant's payment terminal or ATM can ask if you wish to use their own conversion rate for the transaction. You should always select "NO” and use the real Visa exchange rate offered by Lydia. If you select "YES", the conversion will be ensured by the merchant's bank or the ATM. You will then be exposed to high exchange rate fees.

When the value of a currency changes 💸

The value of each currency is constantly changing, and this is normal. For each transaction, most banks therefore charge additional exchange fees (1% to 2% on each payment or withdrawal) in order to cover themselves financially in the event of currency fluctuations.

Instead of invoicing these fixed costs upstream, Lydia rebalances them in hindsight: it's much cheaper and much fairer for the user.

👉 For more information, feel free to read “Why did the amount of my foreign transaction change?

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