Abroad Credit Card Use May Be Settled By Daily Exchange Rate
The Central Bank of Brazil issued on November 23 the Circular N. 3.810, which permits the international credit card issuers to offer to card users the alternative of settling off the credit card bills based upon use of the foreign exchange rate of the date on which the obligation was incurred. Withal, the option of payment based on the exchange rate of the credit card bill issuance date remains available.
The adoption of this new regime of payment must be expressly chosen and accepted by the customer. Otherwise, the invoice will be issued considering the exchange rate of the credit card bill issuance date. In addition, the costumer will also be able to choose among the available options of payment on the spot upon using the electronic card reader machine. Offers such as that are already available in the local market and acquirers provide the customers with the alternatives of using either foreign currency or in the respective amount in reais for payment.
This change shall provide the international credit card user greater predictability regarding the amounts due regarding foreign obligations, which is considered an important measure especially in periods of currency instability. The due amount spent in national currency might be immediately identified by the costumer, thus eliminating the effects of currency fluctuation between the transaction date and the effective due date of the credit card bill.
Furthermore, the new rules extended the payment methods for acquisition of goods and services abroad by using domestic credit card and bank transfer. Before this change the only available payment method for this kind of transaction was upon use of international credit cards.
Circular nº 3.813 of the Central Bank of Brazil can be accessed in the link below:
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