Merchants may apply additional fees when you pay by card. These can include:
- Surcharge Fees
- Currency Exchange Fees
What is a Merchant Surcharge?
A merchant surcharge is an extra fee applied by the merchant when you pay with a card. The amount of this fee is determined by the merchant.
For example, if you make a £10 payment, the merchant may add a £0.50 surcharge, so your total charge would be £10.50.
Why Was My Card Payment Charged in a Different Currency, and Why Was I Charged Extra for This?
When you shop abroad or buy from an international website, two currency exchanges might occur:
- On the merchant's side
- On Paytend's side
Merchants may offer to charge you in your home currency (instead of the local currency) when you make a purchase. If you agree to this, the merchant will apply their own exchange rate, which may be less favorable, and charge you extra. This is known as Dynamic Currency Conversion (DCC).
If you want to avoid extra charges, it's best to opt to be charged in the local currency.