I'm looking at booking a flight, but the fare quote is in Euros. It looks like todays exchange rate is at $1.30 to the Euro. My question is if I purchase it today with my credit card am I billed at todays exchange rate or does it take a couple of days and is billed at the exchange rate for that day? I guess it probably wouldn't be a huge difference, but I'm just curious.
Posted by
Eastern Iowa, USA
8034 posts
You can generally expect that the billing will occur the same day or next day, much like any other transactions you do, and no the difference, even with a few days, will not be great. Your credit card will do the exchange at or near the interbank rate, but keep in mind that they likely will add in a foriegn transaction fee and a conversion fee, plus any other fees that your card may have. The impact could be 1% with good cards or up to nearly 5%.
Posted by
Vernon, Canada
32349 posts
April, The currency conversion is generally done at the time the transaction is "posted", which is usually about a day after the purchase is made. Transactions are often uppdated between computers in the wee hours of the morning, and I believe the process is mostly automated. As you noted, there's probably not going to be a huge difference so there's no point in waiting for an optimum exchange rate. There are some risks in waiting, as the exchange rate could also be worse and cost you more. My advice would be to book the flight and don't be concerned about the exchange. Happy travels!
Posted by
OP
San Diego, CA, United States
219 posts
Thanks for the info!