How foreign transaction fees work

Foreign currency fees (FX fees) are charges that may apply when you pay in a currency different from your company’s main currency, or when a payment is processed outside your country.

This article explains:

• What is a foreign transaction fee
• What affects the cost when you use your Pleo card abroad
• Where to see FX fees in Pleo
• How FX fees are calculated (high-level)
• How multi-currency can help you avoid FX fees (when applicable)

Using your Pleo card abroad

Once you’ve activated your Pleo card, you can use it abroad to:

• Make purchases (in-store and online)
• Withdraw cash at ATMs

Always choose the local currency at the terminal

When paying in person abroad, some terminals ask whether you want to pay in:

• the local currency (for example, EUR in France), or
• your home currency

We recommend choosing the local currency whenever possible. Paying in your home currency can trigger extra charges (this is often called Dynamic Currency Conversion).

What is a foreign transaction fee

A foreign transaction fee (also called an FX fee) is an additional cost that may apply when a card payment:

• is made in a currency other than your company’s main currency, or
• is processed by a bank or merchant location outside your country (even if the currency looks familiar)

What affects the cost when you use your Pleo card abroad

The final amount you see for a foreign-currency transaction can be affected by:

• The exchange rate at the moment of purchase, and
  • In Pleo, we use Mastercard’s exchange rate. For your own reference, you can also check the European Central Bank’s exchange rates.
• Any applicable FX fee
  • The applicable FX fee for your Pleo card is listed in the relevant Terms and Conditions.

Where to see FX fees in Pleo

You can see FX fees in Pleo in two places, depending on what you’re looking at:

1) Running Balance Statement (export)

If you download the Running Balance Statement, FX fees are shown explicitly for eligible transactions in dedicated columns:

• FX Fee – the monetary amount of the FX fee charged for that transaction line
• FX Fee Currency – the ISO currency code for the fee amount (this can be empty when the FX fee is 0 / not applicable)

FX fees are exposed for transaction types where an FX fee is charged, including:

• Card payments
• Invoice payments
• Currency exchanges
• ATM withdrawals

2) Transaction/expense details (in-app)

For some international transactions, FX costs can be less obvious in-app because the FX fee may not always be shown as a separate line item.

If you want the clearest view of the FX fee charged, use the Running Balance Statement export.

How FX fees are calculated (high level)

When an FX fee applies, the final amount you see can include:

1. The original purchase amount (in the foreign currency)
2. The currency conversion using Mastercard’s exchange rate at the time of purchase,
3. The FX fee from your applicable Terms and Condition.

How multi-currency affects FX fees (when applicable)

If your company uses multi-currency, Pleo will automatically pay from the matching currency account when there are enough funds available. This can help you avoid FX fees for that transaction.

FAQ

Why do I see extra costs when I pay in my home currency?

• In some cases, you may be able to avoid FX fees—for example, if you pay from a matching currency account with sufficient funds using multi-currency. However, FX fees may still apply in other situations depending on the transaction and your applicable Terms and Conditions.

Can I avoid FX fees completely?

• If you see extra costs when paying in your home currency, this can be caused by Dynamic Currency Conversion offered by the payment terminal. To help avoid this, choose the local currency when prompted.