What Happens When a Merchant Charges in a Different Currency

Why currency mismatches happen

A merchant's payment terminal or checkout page charges in a specific currency, determined by where the merchant operates or how their payment processor is set up. This charged currency is not always the same as the wallet's stablecoin currency or the cardholder's home currency. For example, a European merchant may charge in euros, while your wallet holds a stablecoin pegged to US dollars.

How the card network handles conversion

When the charged currency differs from the wallet balance's currency, the card network converts the amount at the point of the transaction. This is the same process used for any foreign-currency card purchase, whether the card is funded by a bank account or a crypto wallet. The conversion rate applied is the card network's rate at the time of the transaction, and the wallet balance is debited in its own currency after conversion.

Choosing the billing currency at checkout

Some online merchants let a customer choose the billing currency at checkout, a separate choice from the currency the merchant's own prices are usually displayed in. This option, sometimes called dynamic currency conversion, allows you to see the charge in your home currency before completing the purchase. Whether this is advantageous depends on the conversion rate the merchant offers compared to the card network's rate, which can vary.

Checking the actual charged amount

Reviewing the actual charged amount and currency on the transaction receipt, rather than assuming it matches the displayed price currency, avoids confusion after the fact. The receipt or transaction record will show what currency the merchant billed and what amount was debited from your wallet balance. If the two currencies differ, the conversion will be reflected in the debited amount.

Comparing cards for cross-currency spending

When spending across currencies, compare how different cards handle conversion. A traditional bank card converts at the bank's rate, often with a foreign transaction fee. A neobank card may have lower or no foreign transaction fees but still converts through the card network. A crypto wallet card like Nexus Pay converts the merchant's charged currency to the wallet's stablecoin currency at the card network's rate. Each option has different fee structures and conversion rates, which affect the final cost.

Common questions