{"id":1178,"date":"2014-02-27T14:54:00","date_gmt":"2014-02-27T14:54:00","guid":{"rendered":"https:\/\/www.ubagroup.com\/57-marina\/2014\/02\/27\/how-exchange-rate-is-determined-when\/"},"modified":"2020-09-02T18:33:29","modified_gmt":"2020-09-02T18:33:29","slug":"how-exchange-rate-is-determined-when","status":"publish","type":"post","link":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/","title":{"rendered":"Using your UBA Card Abroad or Online? Read This!"},"content":{"rendered":"<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">International payment cards like<br \/>\nMasterCard and Visa are now commonly issued in Nigeria and most Nigerians are<br \/>\nbeginning to use them to buy things online, pay at PoS terminals or withdraw<br \/>\nmoney from ATMs when they travel outside the country. <\/span><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\">\n<div class=\"separator\" style=\"clear: both; text-align: center;\"><a style=\"margin-left: 1em; margin-right: 1em;\" href=\"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg\" width=\"640\" height=\"640\" border=\"0\" \/><\/a><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"separator\" style=\"clear: both; text-align: center;\"><\/div>\n<p>&nbsp;<\/p>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">When international payment cards are<br \/>\nhowever used to buy items in dollars or pounds or in other international<br \/>\ncurrencies, it results in a need for an exchange rate to be determined for<br \/>\nconverting the foreign currency to Naira. This exchange rate plus any<br \/>\nadditional charges will now determine how much will be deducted or debited from<br \/>\nthe customer\u2019s account with the bank that issued the card for his or her<br \/>\ntransaction. <\/span><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><\/div>\n<div class=\"separator\" style=\"clear: both; text-align: center;\"><\/div>\n<p>&nbsp;<\/p>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">The exchange rate eventually applied<br \/>\nby a bank to deduct the Naira equivalent from a customer\u2019s account has become a<br \/>\nsource of great controversy as usually the customer is taken aback when he or<br \/>\nshe sees that the rate applied to deduct or debit money from his account is<br \/>\ndifferent from a rate applied by another bank or from a rate that is available<br \/>\npublicly or on the Central Bank of Nigeria (CBN) website. <\/span><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">So how do banks arrive at the rate<br \/>\nto apply when you use your MasterCard or Visa card to buy items online or pay<br \/>\nthrough PoS or withdraw from a foreign ATM in Dollars or Pounds or in other<br \/>\ninternationally recognized currencies? <\/span><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">First note that the exchange rate is<br \/>\nset at the transaction point by MasterCard or Visa, not by the bank.<\/span><\/div>\n<div class=\"separator\" style=\"clear: both; text-align: center;\"><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">\u00a0<\/span><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">Also note that the bank that issued<br \/>\nthe cards will have to settle the bank that owns the ATM or PoS or web channels<br \/>\nwhere the transaction took place in Dollars. <\/span><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">The settlement usually happens a day<br \/>\nafter the transaction.<\/span><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">Because, the settlement takes place<br \/>\na day after the transaction, the final transaction amount is subject to<br \/>\nfluctuations in currency. This means that the exchange rate on the day of the<br \/>\ntransaction will not necessarily be the exchange rate on the day of settlement.\u00a0\u00a0 <\/span><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">The Naira may depreciate or<br \/>\nappreciate between the day (Today) when customer used the card to execute his<br \/>\nor her transaction and when the issuing bank in Nigeria settles in USD the<br \/>\nsecond day (tomorrow).<\/span><\/div>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><\/div>\n<div class=\"separator\" style=\"clear: both; text-align: center;\"><\/div>\n<p><span style=\"font-family: 'Century Gothic', sans-serif; font-size: 14pt; text-align: justify;\">Please do not forget that that<br \/>\ninterbank rate is higher than the CBN rate. Interbank dollars are dollars<br \/>\nacquired by banks from sources other than the CBN which they now trade with<br \/>\neach other for profit.<\/span><\/p>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><\/div>\n<p>&nbsp;<\/p>\n<div class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-family: 'Century Gothic','sans-serif'; font-size: 14.0pt;\">In effect, the exchange rate when<br \/>\nyou use an international debit card is closer to the rate obtainable from<br \/>\n\u201cblack\u201d market. However, using your card is safer and more secured. \u00a0<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>International payment cards like MasterCard and Visa are now commonly issued in Nigeria and most Nigerians are beginning to use them to buy things online, pay at PoS terminals or withdraw money from ATMs when they travel outside the country. &nbsp; &nbsp; When international payment cards are however used to buy items in dollars or [&hellip;]<\/p>\n","protected":false},"author":38,"featured_media":1351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[225],"class_list":["post-1178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lion-king","tag-financial-tips"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.6 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Using your UBA Card Abroad or Online? Read This! | UBA Lion King Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Using your UBA Card Abroad or Online? Read This!\" \/>\n<meta property=\"og:description\" content=\"International payment cards like MasterCard and Visa are now commonly issued in Nigeria and most Nigerians are beginning to use them to buy things online, pay at PoS terminals or withdraw money from ATMs when they travel outside the country. &nbsp; &nbsp; When international payment cards are however used to buy items in dollars or [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/\" \/>\n<meta property=\"og:site_name\" content=\"UBA Lion King Blog\" \/>\n<meta property=\"article:published_time\" content=\"2014-02-27T14:54:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-09-02T18:33:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"403\" \/>\n\t<meta property=\"og:image:height\" content=\"403\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"abioduncoker\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"abioduncoker\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/\",\"url\":\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/\",\"name\":\"Using your UBA Card Abroad or Online? Read This! | UBA Lion King Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg\",\"datePublished\":\"2014-02-27T14:54:00+00:00\",\"dateModified\":\"2020-09-02T18:33:29+00:00\",\"author\":{\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/#\/schema\/person\/e0e91b207665c9c9d9b0eff0cec3b8db\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#primaryimage\",\"url\":\"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg\",\"contentUrl\":\"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg\",\"width\":403,\"height\":403},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.ubagroup.com\/57-marina\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Using your UBA Card Abroad or Online? Read This!\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/#website\",\"url\":\"https:\/\/www.ubagroup.com\/57-marina\/\",\"name\":\"UBA Lion King Blog\",\"description\":\"UBA Official Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.ubagroup.com\/57-marina\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/#\/schema\/person\/e0e91b207665c9c9d9b0eff0cec3b8db\",\"name\":\"abioduncoker\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ubagroup.com\/57-marina\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f27ae81b202c8e665e3be03f6028c651?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f27ae81b202c8e665e3be03f6028c651?s=96&d=mm&r=g\",\"caption\":\"abioduncoker\"},\"url\":\"https:\/\/www.ubagroup.com\/57-marina\/author\/abioduncoker\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Using your UBA Card Abroad or Online? Read This! | UBA Lion King Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/","og_locale":"en_US","og_type":"article","og_title":"Using your UBA Card Abroad or Online? Read This!","og_description":"International payment cards like MasterCard and Visa are now commonly issued in Nigeria and most Nigerians are beginning to use them to buy things online, pay at PoS terminals or withdraw money from ATMs when they travel outside the country. &nbsp; &nbsp; When international payment cards are however used to buy items in dollars or [&hellip;]","og_url":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/","og_site_name":"UBA Lion King Blog","article_published_time":"2014-02-27T14:54:00+00:00","article_modified_time":"2020-09-02T18:33:29+00:00","og_image":[{"width":403,"height":403,"url":"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg","type":"image\/jpeg"}],"author":"abioduncoker","twitter_card":"summary_large_image","twitter_misc":{"Written by":"abioduncoker","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/","url":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/","name":"Using your UBA Card Abroad or Online? Read This! | UBA Lion King Blog","isPartOf":{"@id":"https:\/\/www.ubagroup.com\/57-marina\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#primaryimage"},"image":{"@id":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#primaryimage"},"thumbnailUrl":"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg","datePublished":"2014-02-27T14:54:00+00:00","dateModified":"2020-09-02T18:33:29+00:00","author":{"@id":"https:\/\/www.ubagroup.com\/57-marina\/#\/schema\/person\/e0e91b207665c9c9d9b0eff0cec3b8db"},"breadcrumb":{"@id":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#primaryimage","url":"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg","contentUrl":"https:\/\/www.ubagroup.com\/57-marina\/wp-content\/uploads\/sites\/4\/2014\/02\/blog-postwk11.jpg","width":403,"height":403},{"@type":"BreadcrumbList","@id":"https:\/\/www.ubagroup.com\/57-marina\/how-exchange-rate-is-determined-when\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.ubagroup.com\/57-marina\/"},{"@type":"ListItem","position":2,"name":"Using your UBA Card Abroad or Online? Read This!"}]},{"@type":"WebSite","@id":"https:\/\/www.ubagroup.com\/57-marina\/#website","url":"https:\/\/www.ubagroup.com\/57-marina\/","name":"UBA Lion King Blog","description":"UBA Official Blog","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ubagroup.com\/57-marina\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.ubagroup.com\/57-marina\/#\/schema\/person\/e0e91b207665c9c9d9b0eff0cec3b8db","name":"abioduncoker","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ubagroup.com\/57-marina\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f27ae81b202c8e665e3be03f6028c651?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f27ae81b202c8e665e3be03f6028c651?s=96&d=mm&r=g","caption":"abioduncoker"},"url":"https:\/\/www.ubagroup.com\/57-marina\/author\/abioduncoker\/"}]}},"_links":{"self":[{"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/posts\/1178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/comments?post=1178"}],"version-history":[{"count":2,"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/posts\/1178\/revisions"}],"predecessor-version":[{"id":3664,"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/posts\/1178\/revisions\/3664"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/media\/1351"}],"wp:attachment":[{"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/media?parent=1178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/categories?post=1178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ubagroup.com\/57-marina\/wp-json\/wp\/v2\/tags?post=1178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}