Got a VISA-UnionPay Card? Look Out for Extra Charges Overseas

Those holding local VISA-UnionPay credit cards beware – according to the Visa International Service Association, local cards stamped with the “VISA” and “UnionPay” symbols will be required to use the VISA network outside China starting from August 1, even when machines are connected to the UnionPay network. What does this mean for card holders? An extra 1-2 percent on all purchases made with your VISA-UnionPay card.

Formerly, if a credit card machine was connected to the UnionPay network, charges were converted directly into RMB. In contrast, VISA converts all amounts to US dollars first, then into RMB, which means two conversion fees plus a VISA processing fee of 1 percent. The impact on small amounts is negligible, but on very large purchases it can considerably increase costs.

The changes will mainly affect travelers in Southeast Asia, where the VISA-UnionPay network is extensive. In contrast, UnionPay connected machines are rare in Europe and the US, so visitors from China have usually had to use the VISA network in those areas anyway.

By March 2009 over 50 million VISA-UnionPay dual currency credit cards had been issued, so the increased charges will have a potential impact on a large number of people.

According to the Wall Street Journal last week the move by VISA is the result of frustration at being locked out of China, where UnionPay has a monopoly on processing credit card transactions. The only way VISA can pressure the Chinese firm is by hitting UnionPay card holders outside the PRC’s borders, where UnionPay relies on cooperation with VISA to allow multi-currency transactions.

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Merchants Bank UnionPay charged me 15RMB on a 100RMB withdrawal in Bangkok last month... not exactly cheap either, and thats a non VISA variety

This is just great. So now people are going to be paying even more for their credit cards? It's already hard enough to stay on top of your credit score without having to implement credit repair. I'm really getting sick of being subjected to the credit score game...

Su Fei @ ccp

I have just got a bank of construction card, with the union pay facility - No visa / credit card services.
I inquired about the fees & was told, 12 rmb per transaction plus 10% of money withdrawn.

Hi pierrickuk,

The changes only affect cards that are VISA-UnionPay. If your card only has a UnionPay symbol the changes made by VISA shouldn't be make a difference.

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Last year I enjoyed my UnionPay card (not VISA, single currency) in France and wasn't charged for anything and with a better exchange rate than the ones offered in a branch. Turned out to be cheaper than changing money in China and avoided the trouble of traveling with quite some cash.

Anymore info about "normal/simple" UnionPay cards and the charges the cardholder might face?