Credit cards abroad/ when FX converted?

GAKent

I'm going to Ukraine in a couple of weeks and it looks like the currency there is heading for freefall. How do you best use a credit card when paying abroad in countries where theres rapid inflation?

I've heard that the foreign currency, in this case UAH is only converted when you get the statement, not when you pay, but this does not make sense to me as if you pay on say 1st feb for the hotel and its 1000 UAH at a rate of 10 to 1 and you pay your bill on 28 Feb and it's 100UAH to GBP, youre only paying £10 for a hotel room! Surely this is too good to be true?

Ive got a visa card btw

Thanks!

King_Of_Fools

The exchange rate varies daily (even during the day) and is set at the point the transaction is processed (usually 1 or 2 days after the purchase):
http://www.corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp

nomoneytoday

The fx rate used will be set by the bank when they receive the transaction.

Unless the Ukraine Hryvnia falls in that day or two the rate will be close to the 12.75 (or whatever it is in a couple of weeks when you stay)

NickX

If the value of the Ukranian currency is falling against Sterling, then you want as long as delay as possibe between making the transaction and it getting processed to benefit from any further falls in their currency.