How do multi-currency cards work?

Spending money abroad has long been a complex and expensive process for consumers. Uncompetitive exchange rates and high fees when withdrawing cash overseas are just a couple of common issues.

The payments landscape has changed a lot in recent years. Consumers are no longer restricted to using only services provided by traditional banks when evaluating ways to pay in multiple currencies.

Let's take a look at the different forms of multi-currency cards available, how they work, as well as their benefits and drawbacks.

The payments landscape before multi-currency cards

In the twelfth century, pilgrims could leave deposits of cash with the Knights Templar. In return, they were issued letters of credit that could be redeemed in the local currency elsewhere (minus transaction fees, of course).

This was one of the earliest known forms of international banking.

Before multi-currency cards became readily available, travelers had few options when making foreign transactions.

One was - and still is - to exchange currencies in cash.

This can be done at a variety of locations, including banks, post offices, bureau de changes, or ATMs. It usually involves irregular and costly currency exchange rates and expensive cash withdrawal charges.

Until relatively recently, traveler’s cheques were another popular option. These were paper cheques that could be purchased from a financial institution. Once each was signed by the customer, they could be used like cash at participating merchant locations when on an overseas trip.

Users of both cash and traveler’s cheques would have to organise their currency exchange in advance of their trip abroad. This means the risk of exchanging not enough or too much money.

What is a multi-currency card?

Multi-currency cards are payment cards that can make transactions between one or more currencies and regions.

They facilitate currency conversion so that the cardholder can spend abroad or make international purchases.

Multi-currency cards come in the form of prepaid cards, credit and debit cards or virtual cards. They can be assigned to one or multiple bank accounts in different currencies and used for private or corporate purposes. They are usually offered as a physical card that can be used in-store or online.

A separate multi-currency prepaid card or replacement card isn't always needed. Regular debit or credit cards are increasingly providing multi-currency function. They simply convert currency at the point of sale.

What currencies can you spend?

Different multi-currency cards offer a different range of currencies. Starling Card, for example, only provides currency that can be used in the EU (Euro or GBP) or US dollars.

How does a prepaid multi-currency card work?

Prepaid multi-currency cards (also known as 'currency cards') are payment cards connected with an account that stores a foreign currency.

They allow cardholders to make transactions at a more preferential conversion rate than those usually available from traditional banks. These tend to have the lowest fees and charges while avoiding broad swings in exchange rates.

When the preloaded balance runs out, the cardholder is no longer able to make transactions. This means that, like cash and traveler’s cheques, spending has to be planned (or estimated) in advance and carefully monitored.

Benefits of prepaid multi-currency cards

1. Cost-efficient

Consumers can make substantial savings when using services provided by non-banks. These are usually far cheaper and offer more convenient ways to pay in other currencies. Consumers can reduce the amount of unexpected fees for cash withdrawals, and currency conversions.

2. Stable

Regular and fixed currency conversion fees may be guaranteed for fixed periods by many providers.

How does multi-currency credit and debit cards work?

Many credit and debit cards now allow cash withdrawals and money transfers between various currencies, including digital and fiat currencies.

Currencies can be automatically converted using funds available in consumers' bank accounts. This prevents cardholders from having to transfer funds through an external third-party account such as a prepaid card before making purchases.

Card providers such as Visa and Mastercard typically apply the exchange rates at the time of spending for each transaction. Some issuers will add foreign transaction fees of 1-2% on top of this.

This method of multi-currency provides flexibility and convenience. But exchange rates are more volatile than when using services based on prepaid cards. That means hidden fees can add up.

Difference between credit and debit cards

The main difference between credit and debit cards (including multi-currency ones) lies in the way each one is funded and how interest is applied.

Debit cards are linked to and draw directly from cardholders' current account as a bank transfer. Only the available funds can be used to make a purchase or withdraw cash the foreign currency.

Credit cards provide cardholders with a line of credit from a bank or other financial institution. If it's used, this credit must be paid back - sometimes with interest, depending on the provider. However, benefits can be offered, such as reward points, cash back or free travel insurance.

多币种借记卡示例

1.史达琳

Starling 提供欧元和美元个人和企业账户。它使用万事达卡的汇率，没有额外的卡费。此外，持卡人在 ATM 上取款无需支付额外费用。

2.明智

Wise 提供可在 175 个国家使用 50 多种货币消费的个人卡和商务卡。它采用市场中间汇率来调节价格，可节省高达 88% 的货币兑换费用。

多币种借记卡和信用卡背后的技术是什么？

货币兑换、汇率计算和资金流动使用了多种形式的技术。

• 支付处理网络： 这些网络为商家、发卡机构和银行之间的交易提供便利。例如维萨卡或万事达卡
• 货币兑换平台： 这些平台（通常由第三方供应商提供）可实现实时货币兑换
• 移动应用程序或在线平台：用户可通过这些方式管理账户、跟踪交易和监控汇率
• 安全功能： 这些功能包括芯片和 PIN 码技术、生物计量认证和欺诈监控
• 基于云的基础设施：这可实现实时更新，并确保持续访问最新汇率和账户信息

多币种借记卡和信用卡的好处

1.节省时间

持卡人可以节省规划、管理和跟踪货币兑换的时间--对于商务旅客而言。

2.灵活性

由于无需充值或进行其他准备工作，多币种借记卡和信用卡在国外消费时具有更高的灵活性。

3. 减少卡片丢失的机会

无需携带额外的卡，减少了丢失或被盗的几率。

对于需要使用一种以上货币的旅行，一张银行卡的价值就更大了。旅行者可以从一个银行账户中有效地使用多种外币，而无需携带和保管一系列额外的银行卡。

多币种借记卡和信用卡与预付卡的比较

每种贺卡的受欢迎程度取决于个人喜好和需求。

预付多币种卡通常更受希望将消费限制在预定预算范围内的旅行者的欢迎。

另一方面，多币种信用卡或借记卡适用于那些希望获得便利以及灵活预算带来的信心的人。他们知道自己可以应付突发的即兴消费。

预付费卡的设置可能费时、不便，有时还很昂贵。相比之下，为现有借记卡（包括虚拟借记卡）增加多币种功能通常是免费的。

其他考虑因素

关于多币种卡，有一些注意事项需要评估。

例如，安全问题。如果银行卡丢失或被盗，供应商可能无法补发提取的任何现金。在这种情况下，防欺诈和良好的客户服务也很重要。

附加费或隐藏交易费是另一个重要方面。申请费、月租费、ATM 取款费、更换费和未激活费都可能增加费用。不同的服务提供商有不同的收费结构和费率。

在国外 ATM 提款时注意 DCC

DCC 是动态货币兑换的缩写。它是指在国外提取现金时，将交易即时转换为当地货币。对于旅行者来说，它可以让他们放心，因为他们知道用本国货币在国外购物的价格。

一些多币种发卡机构利用 DCC 客户，增加大量利润。

意料之外的交易费用加上缺乏竞争力的货币汇率，会使 DCC 成为旅行者代价高昂的选择。

多币种卡的汇率是多少？

经济事件对汇率的影响

汇率会因全球和地方经济趋势或世界事件而波动。通货膨胀、战争、大流行病、政策公告以及许多其他因素都会对汇率产生影响。

多币种银行卡汇率和供应商

多币种卡的汇率由威士卡和万事达卡集中管理。银行间汇率允许统一货币兑换费。

不过，不同的金融机构和银行卡提供商会收取各自的费用和转换费。

旅行者应注意，兑换率可能不均衡且变化不定。此外，还可能存在 "汇率陷阱"，提供误导性定价和不公平交易。有报道称，兑换费高达 18%。

努维货币管理解决方案

无论您的客户是想在网上还是在店内与您做生意，我们都能让您的生意更轻松，并鼓励客户再次光临。在像本地人一样做生意方面，我们提供了两全其美的服务。

1. 多种货币定价： 用世界上最流行的货币为您的商品和服务定价
2. 动态货币兑换（DCC 和 eDCC）：从外汇加价中赚取额外收入，吸引更多国际客户

进一步了解我们的货币管理解决方案。

摘要

在使用多币种卡之前，旅行者通常在银行、邮局、兑换处或自动取款机上用现金兑换货币。这通常涉及不规则和昂贵的汇率和费用，以及兑换过多或过少货币的风险。

前些年，消费者几乎没有选择余地。银行多年来对此类服务收取高额费用，但如今非银行也能参与竞争。

多币种卡是一种支付卡，有助于摆脱这种模式。

它们主要有两种形式：预付卡和信用卡、借记卡或虚拟卡。

预付费多币种卡 具有成本效益和稳定性。它们可以减少意外费用，但要求持卡人严格遵守计划的消费预算。

多币种信用卡、借记卡或虚拟卡允许提取现金、转账和实时货币兑换。它们的汇率比预付卡更不稳定，不过这可能取决于使用的是哪家信用卡或借记卡提供商。

多币种卡的兑换率由威士卡和万事达卡集中管理，但不同的金融机构和银行卡提供商仍可自行设定成本和兑换费，这些成本和兑换费可能参差不齐，变化不定。