When you make a purchase in a currency other than USD, you may occasionally see an authorization amount that looks much higher than the exchange rate you expected.
If the transaction is still showing as Authorized and has not yet Settled, don’t worry.
This is a normal card-network behavior and is especially common when spending in currencies that are not one of the major global currency pairs.
Examples of major currency pairs include:
USD / EUR
USD / GBP
USD / CAD
USD / AUD
USD / JPY
USD / CHF
For many other currencies, exchange rates can move more significantly and may have less liquidity available than major pairs.
To protect against exchange-rate movements between the time the transaction is authorized and the time it settles, some merchants, processors, and card networks may temporarily authorize a larger amount than the final charge is expected to be.
This helps ensure there are sufficient funds available in the event the exchange rate moves before settlement occurs.
As a result, you may see:
An authorization amount that appears significantly higher than expected
Multiple authorization amounts before settlement
A temporary hold that does not reflect the final exchange rate
Once the transaction moves from Authorized to Settled, it will typically settle at the actual exchange rate used by the card network.
In most cases, the final settled amount is generally within approximately 2-2.5% of prevailing spot foreign exchange rates, although exact rates can vary depending on the currency pair, network, merchant, and timing of settlement.
If your transaction is still in the Authorized state, there is usually no action required.
If the transaction has already Settled and the final amount still appears incorrect, please contact us through the chat widget in the bottom-right corner of the website and we’ll be happy to investigate.