In foreign transactions, the Transaction Amount is taken online from the customer's account, but what actually matters is the amount transmitted through clearing.
When the original transaction's value in US Dollars is calculated separately at both the online stage and at clearing, possible exchange rate fluctuations can create risk for the bank.
To reduce this kind of risk, banks perform the currency conversion using a marked-up exchange rate (for example, 1%). As a result, a larger amount is deducted from the customer's account when converting from Dollars to Turkish Lira.
While the marked-up rate is generally used by banks, there are also banks that do not use a marked-up rate.
Calling your bank before making foreign transactions in particular, to find out the commissions that will be charged, will reduce the chance of running into surprises.
You can find detailed information on how the foreign transaction flow works at the link below.
How can the difference be reduced?
When paying abroad with a card, the terminal may offer to charge you in Turkish Lira instead of the local currency. This is called dynamic currency conversion and is generally more expensive. Choosing the local currency is usually more advantageous.
It is also useful to find out the margin your bank applies and when it sets the exchange rate. Some banks use the real-time rate, while others use the rate on the clearing date.
If you will be making a large number of foreign purchases, you may prefer a card or account with a lower exchange rate margin.
