How much does UnionBank charge for international transactions?

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

Planning an overseas trip or making an international purchase? Understanding the fees associated with your transactions is crucial to budgeting effectively. This article clarifies UnionBank’s charges for international transactions, ensuring you’re not caught off guard by unexpected costs.

UnionBank applies two main fees to international transactions made using your UnionBank credit or debit card:

1. UnionBank Service Fee: This fee is a percentage-based charge levied by UnionBank itself. The maximum fee is 2.525% of the converted transaction amount. This means the fee is calculated after the foreign currency has been converted to Philippine Pesos (PHP). It’s important to note that the actual fee might be lower than 2.525% depending on the specific circumstances of the transaction, but you should always budget for the maximum to avoid surprises.

2. Mastercard/Visa Assessment Fee: In addition to UnionBank’s service fee, a further 1% assessment fee is added by either Mastercard or Visa (depending on your card type). This fee, like the UnionBank service fee, is also calculated on the converted transaction amount.

Let’s illustrate with an example:

Imagine you make a purchase of US$100, and the exchange rate is ₱55.00 per US dollar. The converted amount would be ₱5,500.

• UnionBank Service Fee: ₱5,500 x 2.525% = ₱138.88 (maximum)
• Mastercard/Visa Assessment Fee: ₱5,500 x 1% = ₱55.00

Total Fees: ₱138.88 + ₱55.00 = ₱193.88

Your total cost for the US$100 purchase would be ₱5,500 + ₱193.88 = ₱5,693.88.

Key Takeaways:

• Transparency is key: Always check your statement carefully to understand the exact fees applied to each international transaction.
• Budget accordingly: Factor in these fees when planning international spending. The maximum fee of 3.525% (2.525% + 1%) should be considered when budgeting.
• Alternatives exist: Consider alternative payment methods for international transactions, such as international money transfer services, which may offer more competitive fees.

While UnionBank provides a convenient way to make international transactions, understanding their fee structure is vital for responsible financial management. By being aware of these charges, you can better manage your finances and avoid unexpected expenses when engaging in international transactions. Always contact UnionBank directly for the most up-to-date information on their fees and policies.