What If the Exchange Rate Changes While Your Payment Is Processing?

The rate locks in at authorization

A card transaction typically locks in its conversion rate at the moment the transaction is authorized, not at some later point when it fully settles, which is why the amount shown at checkout is generally the final amount charged. If you see a total of ten dollars at the register, that is the amount that will be charged, even if the transaction takes a day or two to fully settle. The rate you see at authorization is the rate that applies.

Some transactions authorize an estimate first

Some transactions, like a hotel hold, authorize an estimated amount first and settle the final actual amount later, which can result in a different final charge even without the exchange rate itself changing, simply because the final bill differed from the estimate. This is not an exchange rate issue but a difference between the estimated hold and the actual charge. The rate still locks in at authorization, but the amount authorized may not match the final bill.

Rates can move before you confirm

Exchange rates can move between the moment a person checks a rate and the moment they actually complete a transaction, especially for a volatile asset, one reason the rate shown just before confirming a transaction is the one that matters, not a rate seen earlier. If you check a rate, then wait several minutes before completing the transaction, the rate may have changed by the time you authorize. Always check the rate immediately before confirming.

Stablecoins reduce this concern

Because a stablecoin's value moves far less than a volatile asset's, this timing consideration matters much less when spending from a stablecoin balance than it would when spending directly from a volatile cryptocurrency balance. If you hold a stablecoin pegged to the dollar and spend in dollars, the rate is effectively one-to-one and does not fluctuate. Nexus Pay supports stablecoins across six networks, so you can fund your card with a stable balance and avoid rate-movement concerns.

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