This guide explains why you were charged in USD when the price is shown in BRL, as well as exchange rates, and related fees.
Why Am I Being Charged in USD When the Price Is Shown in BRL?
You are charged in USD because your KAST card is denominated in US Dollars. Even if the price is displayed in Brazilian Reais (BRL), the transaction is converted into USD at the time it is processed by the card network (Visa® ).
Why Was I Charged a Different Amount in USD Compared to BRL?
When you make a purchase in BRL but pay with your KAST card (which is denominated in USD), the transaction is converted using the current exchange rate at the time of processing.
Key factors affecting the final amount:
- Currency of Transaction: KAST processes your transaction in USD even though the price is displayed in BRL. Therefore, the final amount you are charged will reflect the applicable conversion rate and any associated fees.
- Exchange Rate: KAST’s exchange rate might differ from the one shown on public currency sites. This means the final conversion rate for your transaction may be slightly higher or lower than the “mid-market” rate you find online.
- Timing: Exchange rates can fluctuate between the time you make the purchase and when the transaction is processed.
What Fees Are Associated With Transactions?
Depending on the type of transaction and the currencies involved, the following fees may apply:
- FX Fee: A 0.5% - 1.75% fee is applied to purchases made in BRL. This fee is typically added directly to the transaction amount at the time of purchase.
- Low Value Fee: For transactions under $25 USD, a small flat fee ($0.1) may be charged to cover processing costs.
Why Is the Exchange Rate Different From What I See Online?
The exchange rate applied to your transaction is set by the payment processor or card network (e.g., Visa, Mastercard) at the time the transaction is settled. This rate may include a small markup compared to the mid-market rate you see online. Additionally, rates can change throughout the day due to market fluctuations.
How Do I Fix Common Issues?
- Charged Twice or in Unexpected Currency: If you see two charges or a charge in a different currency than expected, check your transaction history for pending or duplicate transactions. Sometimes, a pre-authorization hold may appear temporarily.
- Unexpected Amounts: Review your receipt and transaction details to confirm the currency and any fees applied. If you believe there is an error, contact customer support with your transaction details.
Tips
- Always check your transaction currency in the payment confirmation screen before completing a purchase, especially if the item price is shown in BRL but your KAST card is in USD. This ensures you know whether a currency conversion (and its fees) will apply and can help you avoid unexpected charges.
- If you have questions about a specific transaction, provide the date, amount, and currency to our support team for faster assistance.
Frequently Asked Questions
Do all transactions have fees?
No. Fees only apply when currency conversion is involved or if the transaction falls under specific conditions like low-value payments. If you’re paying in USD, most transactions go through without additional FX fees.
Can the exchange rate change after I make a purchase?
Yes. The rate applied at authorization may differ from the one applied at settlement if there’s a delay in processing. This is normal, as exchange rates fluctuate constantly throughout the day.
Does KAST set its own exchange rate?
No. Exchange rates are set by the card network (Visa). KAST only applies its fees, such as the FX fee, on top of that rate.
Can merchants add their own conversion fees?
Yes. Some merchants use Dynamic Currency Conversion (DCC), which lets you pay in USD but usually at a worse exchange rate. Always choose BRL as the payment currency when using your KAST card in Brazil to avoid merchant-imposed fees.
Why was I charged more than I expected?
The difference usually comes from the FX fee or a shift in the exchange rate between the time of purchase and settlement. Always check the confirmation screen and your receipt to see the final applied rate and any fees.
Do I see the FX fee as a separate charge?
No. The FX fee is usually added into the final transaction amount you see posted.
Are ATM withdrawals in BRL also subject to fees?
Yes. ATM withdrawals in BRL are treated as foreign transactions and may include both an FX fee and a local ATM operator fee. Be sure to review the ATM’s on-screen disclosure before completing a withdrawal.
How can I minimize fees when paying in BRL?
Always choose BRL as the payment currency instead of USD if offered Dynamic Currency Conversion. Also, avoid making multiple low-value transactions under $25, as these may trigger the small flat processing fee.
What should I do if I think the wrong rate was applied?
First, compare the rate on your receipt with the official Visa exchange rate for that day. If it doesn’t match and you believe it’s an error, contact KAST Concierge with your transaction details for investigation.