Question

Conversion of currency is covered in AS

Answer 1

Explanation:

A currency conversion fee, sometimes called a “foreign currency conversion fee” or “foreign currency exchange fee,” is a charge assessed by a foreign merchant to convert transactions involving foreign currency into dollars. It is calculated by your credit or debit card payment processor (in the case of a purchase)—or your ATM network (in the case of a withdrawal)—or it can be calculated at the point of sale by using a system called dynamic currency conversion (DCC). It is often mistaken for a foreign transaction fee, which is actually a fee on the transaction itself. The currency conversion fee is frequently incorporated into the foreign transaction fee on credit card statements, which explains the confusion

Answer 2

Answer:

Typically, a currency conversion charge equals 1% of the transaction price. It is assessed by the ATM network or credit card payment processor (often Visa, MasterCard, or American Express) and is frequently added to the international transaction cost that you pay.

Explanation:

A foreign retailer will charge a currency conversion fee to convert transactions using foreign currency into dollars. This price is sometimes referred to as a "foreign currency conversion cost" or "foreign currency exchange fee." It can be computed at the point of sale using a method known as dynamic currency conversion, or it can be done by your credit or debit card payment processor (for a purchase) or your ATM network (for a withdrawal) (DCC). It is sometimes misunderstood to be a foreign transaction charge when, in fact, it is a fee for the transaction itself. Confusion arises because credit card statements typically include both the international transaction cost and the currency conversion fee.

Currency conversion can be done manually or through an online currency exchange. To determine the conversion rate before utilizing either option, utilize an online exchange rate calculator or get in touch with your bank.

currency conversion meaning:

It effectively compares the price of one currency to another. The value of one nation's currency relative to other currencies can fluctuate as the exchange rate does. For instance, if the euro/dollar exchange rate is 1.25, one euro can be equivalent to $1.25 in American money.

compute conversions of currencies:

Divide your current currency by the exchange rate if you are aware of it. Assume, for instance, that you want to change 100 USD into EUR and the USD/EUR exchange rate is 0.631. You may do this by simply multiplying 100 by 0.631 to get the amount of EUR you will get: 63.10 EUR.