Overview
The Cross-Border Payments Regulation (CBPR2) aims to increase transparency and fairness in cross-border payments within the EU, especially regarding currency conversion costs. For card issuers, Article 4 introduces specific requirements to ensure cardholders are fully informed about currency conversion markups both before and after making transactions in a currency different from their card’s currency.
Before the transaction
After the transaction
Card issuers and payment service providers must clearly disclose the total currency conversion charges—including any markup over the latest available euro foreign exchange reference rates—before the cardholder authorizes a cross-border transaction.
This information should be displayed in a clear, neutral, and easily understandable way, allowing cardholders to make informed decisions before proceeding with the payment.
After a cross-border transaction is completed, card issuers must promptly send the cardholder an electronic notification (such as SMS, email, or app notification) detailing the actual currency conversion charges and the markup applied. This post-transaction notification must be provided without undue delay, and cardholders should have the option to opt out of receiving such notifications.
