Does BPI charge for international transactions?

BPI Introduces Cross-Border Fee for International Online Purchases in Pesos

Starting October 9, 2023, Bank of the Philippine Islands (BPI) debit cardholders will encounter a new fee when shopping online with international retailers. A 1.5% cross-border fee will now be applied to purchases made in Philippine Pesos (PHP) from these retailers. This fee specifically targets transactions using Dynamic Currency Conversion (DCC).

DCC allows cardholders to see the transaction amount in their local currency (in this case, PHP) at the point of sale. While seemingly convenient, it often results in a less favorable exchange rate compared to letting your bank handle the conversion. BPI’s new 1.5% cross-border fee adds another layer of cost to these DCC transactions.

This means that if you’re buying a product from an international website and choose to pay in PHP through DCC, BPI will charge you 1.5% of the total PHP amount. For example, a PHP 10,000 purchase would incur a PHP 150 cross-border fee.

This new fee emphasizes the importance of understanding how DCC works and its potential impact on your spending. While seeing the price in PHP might feel more comfortable, it could ultimately cost you more. Opting to pay in the foreign currency and letting BPI handle the conversion might be a more cost-effective approach, although this still subjects the transaction to BPI’s standard foreign exchange rates and any associated fees.

Cardholders are encouraged to carefully review the payment options during international online purchases. Understanding the implications of DCC and the new cross-border fee can help you make informed decisions and potentially save money. Contacting BPI directly for clarification on their foreign exchange rates and any applicable fees is always recommended for transparency and to ensure you’re getting the best possible exchange rate on your international transactions.