MasterCard's Currency Conversion Tool was created to assist customers in Europe to comply with the provision contained in the Payment Services Directive (PSD) that requires transparency of exchange rate information. Specific reference is made to the transparency requirements imposed by Title III of the PSD that apply to payment services made in Euro or any of the official EEA currencies. In addition to providing customers with calculated cross-rates for all EEA currencies, MasterCard has extended the range of currencies to assist customers and their cardholders globally.
MasterCard uses multiple market sources (such as Bloomberg, Reuters, Central Banks and others) to develop exchange rates. These rates generally reflect either wholesale market rates or government mandated rates that are collected during the daily rate setting process. The displayed rates are derived from the buy and sell rates included in the MasterCard daily rate setting process and do not include any charges or markups applied by the Issuer. Please note that due to possible rounding differences, the displayed rates may not precisely reflect the actual rate applied to the transaction amount when converting to the cardholder billing amount. The exchange rate that is applied to a transaction is the exchange rate as of the day of settlement which is the day that MasterCard determines the settlement amount to be exchanged between the acquirer and the issuer. The settlement date is therefore typically different from the date of the actual transaction. MasterCard does not provide the exchange rate when purchases are converted from the local currency by the merchant to the cardholder's currency at the point of sale.