Understanding FX Fees, Markups, and Exchange Rates for Plasma Card Transactions
When using your Plasma card for transactions in a foreign currency, it’s important to understand how FX fees, markups, and exchange rates are applied. This guide provides a comprehensive overview to help you navigate these charges effectively.
FX Markups by Membership Plan
Plasma applies different FX markups depending on your membership plan:
Lite Plan: 1% FX markup
Core Plan: 0.5% FX markup
Platinum Plan: 0% FX markup (no Plasma markup)
These markups are added to the base exchange rate when you spend in a currency different from your account currency.
Third-Party Fees (Visa Network)
In addition to Plasma’s markup, third-party fees from the Visa network may apply. These fees are typically around 1% and are charged on all plans, including Platinum. The Visa network also determines the base exchange rate used for currency conversion.
Dynamic Currency Conversion (DCC)
When you’re making a purchase outside the U.S., some merchants or card terminals may ask whether you want to pay in USD or in the local currency.
You should always choose the local currency.
DCC may seem convenient because you see the price in USD at checkout, but the merchant’s exchange rate often includes hidden fees and markups. These markups can sometimes add an extra 4–8% to your purchase.
Estimating FX Rates
To estimate the FX rate before making a transaction, you can use the Visa exchange rate calculator. Select the relevant currency pair, choose the transaction date, and enter the applicable bank fee (e.g., 1.5% for Core plan) to get an estimate of the rate and amount.
Pending vs. Settled Transactions
For pending transactions, the FX rate and fees displayed are only estimates. The final amounts are calculated once the transaction settles, which can take a few days. If discrepancies persist after settlement, review the transaction details in the app.
FX Rates for SEPA Deposits
For SEPA deposits, Plasma uses the live market rate at the time the transfer settles. The FX spread is determined by the banking infrastructure partner, and Plasma cannot guarantee or publish an exact spread in advance. To understand the precise rate and any associated fees, you can review the transaction details after the deposit is completed. If you are unsure about the costs, consider sending a small test transfer first to estimate the expenses before making a larger deposit.
Why FX Rates Vary Between Currencies
FX rates can vary due to differences in how currencies are valued. For example, currencies pegged to USD, like AED, tend to have minimal spreads, while fluctuating currencies like EUR may show larger variances. These differences are determined by the Visa network’s exchange rate.
Why FX Rates Differ Between Card Transactions and SEPA Deposits
The FX rates for card transactions and SEPA deposits differ because they rely on separate networks with distinct pricing mechanisms. Card transactions use the Visa network's exchange rate, while SEPA deposits are processed through a banking rail with its own rate and timing. These independent systems result in rate differences, which Plasma cannot align or cap.
Related Resources
Visit Plasma’s help center for a detailed breakdown of fees.
Use the Visa exchange rate calculator for real-time rate estimates.
Review transaction details after SEPA deposits to understand the exact rate and fees.
Consider sending a small test transfer to estimate costs before making larger deposits.
By understanding these factors, you can better anticipate the costs associated with foreign currency transactions and make informed decisions when using your Plasma card.