Dollar on Credit Card: Understand the Spread and How to Save

Making international purchases with a credit card is practical, but it can also be more expensive than you think. In addition to the IOF (Tax on Financial Transactions), card operators apply a fee called exchange rate spread which can significantly increase the final purchase value. Understanding this extra cost is essential for those who regularly buy from international websites or travel abroad.

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What is the currency spread?

THE spread is an additional value applied to the official dollar rate at the time of conversion. It represents the financial institution's profit margin on the exchange transaction.

For example: if the official dollar rate is R$ 5.00 and the bank applies a spread of 5%, the final rate used will be R$ 5.25. This small increase may seem irrelevant for a single purchase, but for large or recurring expenses, the amount becomes significant.

In addition to the spread, the government also charges the IOF, currently 4,38% about international transactions made with a credit card.

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Spread comparison between banks and fintechs

The spread varies from bank to bank. Some traditional institutions charge high fees, while fintechs or cooperatives may offer more advantageous conditions. See examples of average spreads:

• Harvest: 7,00%
• BTG Pactual, Santander, Pan: 6,00%
• Itau, Credicard: 5,50%
• Bradesco: 5,30%
• C6 Bank, Banco do Nordeste, PicPay, Next: between 4% and 5%
• Bank of Brazil, Caixa, Inter, Nubank, Nomad (credit): about 4%
• Sicoob, Unicred, Cresol: 0%

In other words, depending on the card used, the final amount on the invoice can vary greatly for the same purchase.

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How to calculate the impact of the spread on your purchase

Let's look at a practical example to understand how the spread weighs on your pocket:

• Purchase value: US$ 100
• Commercial dollar (official rate): R$ 5.70
• Spread of 5.3% (Bradesco example):
  • Applied quote: R$ 5.70 + 5.3% = R$ 5.99
  • Subtotal: US$ 100 × R$ 5.99 = R$ 599
  • IOF (4.38%): R$ 26.25
  • Total invoice: R$ 625.25

In other words, a $100 purchase that you thought would cost R$ 570 could end up costing almost R$ 55 more expensive due to the embedded fees.

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How to save money on dollar purchases

Even if you can't completely avoid the spread, there are a few ways to minimize this cost:

• Find out your card's spread: Many banks do not clearly inform this fee, but you can find this information on specialized websites or by calling the call center.
• Give preference to fintechs and cooperatives: Institutions such as Nomad, Inter, Sicoob, Cresol and Unicred tend to practice lower or even zero spreads.
• Use digital accounts with dollar balances: Some services allow you to convert reais to dollars in times of low exchange rates, and use this balance with an international debit card, without additional spread.
• Avoid making purchases in currencies other than the dollar: In this case, the amount is first converted to dollars and only then to reais, which increases the charges even further.

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Conclusion

The spread on a credit card is an invisible but real cost. Knowing how much your bank charges and looking for options with lower rates can generate significant savings, especially if you make frequent purchases on international websites, pay for services in dollars or travel regularly.

Keep an eye on the spread and choosing the right card to use can represent savings of up to 7% per purchase. With the rise of the dollar, this care makes all the difference in your financial planning.