I live in the US and I’m considering ordering from a Canadian company. The site says they’ve listed the prices in USD but state that it will be charged in CAD. I’m a little confused about what amount will show on my account. I’ve included the text below.
“For your convenience, your order summary has been displayed in the currency you selected. This exchange rate is only an estimate, and your order will be processed and charged to your credit card in CAD.”
In: Economics
CAD (Canadian $) ≠ USD (US $)
But, the website knows what the conversion rate is. What you need to know is that they will charge your credit card in CAD. Your bank will convert the CAD into USD, since that’s the currency of your account. They will charge a conversion ratio that you have previously agreed to, but it’s not necessarily the same number the website used. The website is saying this so that you don’t complain when the USD actually charged to your card is a different number than they showed at checkout. Your bank may also add a forex fee, and the website can’t tell you about that in advance either. You need to know how your bank handles foreign currencies, the website is only approximating that.
Your credit card company will use their exchange rates to do the conversion and your bill will show the rate in USD and usually they display an exchange rate next to it
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