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Even though you're paying extra for that delightful little hotel off the Boulevard St.-Germain, your statement often doesn't itemize the special overseas fee, which is lumped into the currency conversion charges.
Transferring euro across borders will be cheaper everywhere in the EU and currency conversion charges will be clearly communicated to consumers, thus ensuring better transparency and comparability.
(5) Currency conversion charges represent a significant cost of cross-border payments when different currencies are in use in the payer's and the payee's countries.
To that end, market players should be given sufficient time to adapt their infrastructure and processes in relation to those provisions that relate to currency conversion charges in order to comply with the transparency requirements regarding currency conversion charges in this Regulation.
Negotiators agreed that when using the currency conversion service provided by their bank, consumers should receive an electronic push notification such as SMS message, e-mail or notification through the payer's mobile banking application about the applicable currency conversion charges.
(6) Transparency in currency conversion charges requires adapting current payment infrastructures and processes, in particular for payments made online, at the point of sale or for ATM cash withdrawals.
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The currency conversion charge is in addition to a 1percentt fee that Visa and MasterCard have been charging for foreign transactions.
Another motive for shopping around may be choosing a credit card company that itemizes or at least displays a total currency conversion charge on its bills.
"You don't know that what happened was that there was an exchange rate applied, plus the currency conversion charge," Mr. Stewart said.
He generally uses a Visa card issued by First USA in conjunction with United Airlines's Mileage Plus program, and said he remembers receiving a notice earlier this year about the currency conversion charge.
For example, with Santander's debit card, each one of those €5 breakfasts would cost you an extra £1.37, made up of a £1.25 "purchase fee" and 12p currency conversion charge per transaction.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com