How are exchange fees applied at PaySika?
Are you a frequent traveler abroad? While online payments have revolutionized the way we shop, it's important to understand how foreign currency transactions work, especially when it comes to exchange fees.
If you're planning to travel or make online payments with your PaySika card in a country outside your local area, this article is for you.
We'll explain everything you need to know about exchange fees so you can avoid unpleasant surprises.
1- What Are Exchange Fees?
Exchange fees—also known as currency conversion charges—are additional costs charged by your bank or card issuer when you make a payment in a currency different from that of your account.
These fees cover the cost of converting the foreign currency into your local currency.
2- Why Do Exchange Fees Apply?
Exchange fees apply for several reasons:
Currency Conversion: Your bank or card issuer must convert the foreign currency into your local currency.
Exchange Rate Risk: Fluctuations in exchange rates between currencies pose a financial risk to financial institutions.
Banking Services: These fees also help cover the cost of banking services, including the processing of international transactions.
3- How Exchange Fees Are Calculated
Exchange fees can vary based on several factors:
Exchange Rate: The rate at which one currency can be exchanged for another. Banks often add a margin to the market rate.
Bank Commission: A fixed fee or a percentage of the transaction amount may be added on top of the exchange rate.
Type of Card: Fees may vary depending on the card type (Visa, Mastercard, etc.) and the issuer.
4- How Much Are PaySika's Exchange Fees?
Note: Exchange fees at PaySika currently apply only to users with USD cards. This is due to a policy enforced by our partner.
The exchange fees are 3% of the transaction amount in USD + $0.50.
For example:
You want to purchase an item online that costs 30,000 NGN using your USD card.
Let’s assume the rate is 1 NGN = 0.00066 USD. So your transaction amount will be:
0.00066 * 30,000 = 19.8 USD
Here’s how your exchange fee will be calculated:
19.8 USD * 3% = 0.597 + 0.50 USD = 1.094 USD
Your total amount charged from your PaySika account will be: Transaction amount + transaction fee + exchange fee.
We hope this article was helpful 😊. Feel free to reach out to us if you need any assistance!
If you're planning to travel or make online payments with your PaySika card in a country outside your local area, this article is for you.
We'll explain everything you need to know about exchange fees so you can avoid unpleasant surprises.
1- What Are Exchange Fees?
Exchange fees—also known as currency conversion charges—are additional costs charged by your bank or card issuer when you make a payment in a currency different from that of your account.
These fees cover the cost of converting the foreign currency into your local currency.
2- Why Do Exchange Fees Apply?
Exchange fees apply for several reasons:
Currency Conversion: Your bank or card issuer must convert the foreign currency into your local currency.
Exchange Rate Risk: Fluctuations in exchange rates between currencies pose a financial risk to financial institutions.
Banking Services: These fees also help cover the cost of banking services, including the processing of international transactions.
3- How Exchange Fees Are Calculated
Exchange fees can vary based on several factors:
Exchange Rate: The rate at which one currency can be exchanged for another. Banks often add a margin to the market rate.
Bank Commission: A fixed fee or a percentage of the transaction amount may be added on top of the exchange rate.
Type of Card: Fees may vary depending on the card type (Visa, Mastercard, etc.) and the issuer.
4- How Much Are PaySika's Exchange Fees?
Note: Exchange fees at PaySika currently apply only to users with USD cards. This is due to a policy enforced by our partner.
The exchange fees are 3% of the transaction amount in USD + $0.50.
For example:
You want to purchase an item online that costs 30,000 NGN using your USD card.
Let’s assume the rate is 1 NGN = 0.00066 USD. So your transaction amount will be:
0.00066 * 30,000 = 19.8 USD
Here’s how your exchange fee will be calculated:
19.8 USD * 3% = 0.597 + 0.50 USD = 1.094 USD
Your total amount charged from your PaySika account will be: Transaction amount + transaction fee + exchange fee.
We hope this article was helpful 😊. Feel free to reach out to us if you need any assistance!
Updated on: 21/04/2025
Thank you!