How much does BPI charge for an international transaction?

Decoding BPI’s International Transaction Fees: What You Need to Know

For BPI debit cardholders, the convenience of using your card globally comes with associated costs. While local purchases remain free, international transactions involve a tiered fee structure that’s important to understand before you travel or make online purchases from overseas vendors.

The primary fee is a flat 1.5% transaction fee applied to every international purchase. This fee is levied on the total transaction amount in the foreign currency before conversion to Philippine Pesos (PHP). This means that a $100 purchase will immediately incur a $1.50 fee.

However, the cost doesn’t end there. BPI also applies a 1% forex markup to the exchange rate. This markup affects both the buying and selling rates used for currency conversion. This means that the exchange rate BPI uses will be slightly less favorable to you compared to their published rates – you’ll receive fewer pesos for your foreign currency than you would with a more favorable exchange rate. Conversely, when purchasing foreign currency with your BPI debit card, you’ll pay more pesos than you would with the published rate.

Let’s illustrate with an example:

Imagine you’re purchasing a $100 item in the US. The published BPI exchange rate is $1 USD = ₱55 PHP.

1. Transaction Fee: A 1.5% fee is applied: $100 * 0.015 = $1.50. Your total cost in USD becomes $101.50.

2. Forex Markup: The 1% markup on the exchange rate means the effective rate will be slightly lower than ₱55. Let’s assume, for simplicity, the markup reduces the rate to ₱54.45. (The exact reduction will depend on the prevailing market rates and can fluctuate).

3. Final Cost: Converting the $101.50 at the marked-up rate, you’ll pay approximately ₱5520.28 (101.50 54.45). This is considerably more than the ₱5550 (100 55.5) you would have paid with the published rate without the fees.

Therefore, while the 1.5% transaction fee might seem straightforward, the additional 1% forex markup significantly impacts the overall cost of your international transaction. It’s crucial to factor in both fees when budgeting for international purchases using your BPI debit card. Consider these charges when comparing the cost-effectiveness of using your BPI card versus alternative payment methods for international transactions. Being aware of this complete fee structure allows for better financial planning and informed decision-making.