If card transaction currency differs from the currency of the card account, currency exchange rate is determined by VISA Payment System. The transaction amount will be reflected with VISA exchange rate valid on the date of processing the transaction in the settlement system.

JSC Isbank Georgia issues cards in two currencies - GEL and USD. If requested amount exceeds the balance on the card account, transaction will be rejected; because one card is linked to only one currency account.

If card account balance is sufficient for the transaction - authorization request is confirmed. After authorization, the transaction amount is blocked on client’s account. The total blocked amount will be equal to the transaction amount converted with VISA exchange rate valid on the date of processing the transaction in the settlement system plus 5% margin of the transaction amount added in order to insure the currency risk of the bank plus 2% exchange commission of the bank. In case of ATM cash withdrawal, additional fee for international transactions will be applied in accordance with established bank tariffs.   

Blocked Amount = Transaction Amount in Foreign Currency x Payment System Exchange Rate + %5 (Margin to secure currency risk) + 2% (currency exchange commission) + Optional (international ATM commission)

When final debit transaction record is delivered to the Bank from clearance via VISA channel, client account is debited by the clearance amount, meanwhile previously blocked amount is released together with blocked 5% margin. As debited amount is in foreign currency, conversion is done at the rate set by the bank (currently, the same as National Bank of Georgia) on the day of transaction settlement.

In case if transaction currency is the same as the currency of the International Payment System (Visa) and customer account; only transaction amount will be blocked on the client account, currency risk margin of 5% will not be applied.

Note: Since funds could be deducted few days after transaction is made by the customer, one should consider that there could be a difference between VISA exchange rate at the moment of blocking the amount and exchange rate valid on the day of transaction processing.

Example 1: The POS purchase transaction abroad

Customer Account currency

Customer Account balance

GEL

500

     


Amount requested by the customer – 100 (TRY) Turkish Lira

VISA Conversion ratio - 100 TRY = 15 USD

 As transaction currency differs from the card currency and settlement currency, agreed between the Bank and Payment system (GEL, USD), the requested transaction amount will be determined in USD. Wherein, currency exchange from TRY to USD will be in accordance with the rate set by VISA on the processing date of transaction.

The final debit amount will be converted at the rate set by the bank (currently, the same as National Bank of Georgia) on the day of transaction settlement.

 

GEL

Transaction currency

Account balances

500

-

Requested funds

-

-100TRY *

Blocked funds**

48,15

-

Deducted funds***

-45,9

-

Balances in accounts after conversion and debiting

       454,10

-

 

* Sample Exchange rate: 1 TRY = 0,15 USD

* Sample Exchange rate:  1 USD = 3GEL

** Blocked funds calculated as - 100TRY=15 USD, 15 USD + 5% currency risk margin + 2% exchange commission of the bank, (15USD+0,75USD+0,3USD) = 16,05 USD, 16,05 USD*3GEL (bank Exchange rate) = 48,15GEL


*** Deducted funds calculated as 5% margin released and again become available on the client's account, so deducted funds 15 USD + 2% exchange commission of the bank (15USD+0,3USD) = 15,3 USD, 15,3 USD*3GEL (bank Exchange rate) = 45,9GEL,

Note that date of transaction and date of reflecting on the account may differ; moreover, date of transaction reflection on the account and currency exchange transaction date may also differ. 

Example 2: ATM withdrawal transaction in abroad

Customer Account currency

Customer Account balance

GEL

500

     

 


Amount requested by the customer – 100 (TRY) Turkish Lira

VISA Conversion ratio - 100 TRY = 15 USD

 As transaction currency differs from the card currency and settlement currency, agreed between the Bank and Payment system (GEL, USD), the requested transaction amount will be determined in USD. Wherein, currency exchange from TRY to USD will be in accordance with the rate set by VISA on the processing date of transaction.

The final debit amount will be converted at the rate set by the bank (currently, the same as National Bank of Georgia) on the day of transaction settlement.

 

GEL

Transaction currency

Account balances

500

-

Requested funds

-

-100TRY *

Blocked funds**

-66,15

-

Deducted funds***

-63,90

-

Balances in accounts after conversion and debiting

436,10

-

* Sample Exchange rate:

1 TRY = 0.15 USD

* Sample Exchange rate: 

 1 USD = 3GEL

* ATM withdrawal commission

-3%, min.6 USD

** Blocked funds calculated as:

100TRY=15 USD, 15 USD + 5% currency risk margin + 2% exchange commission of the bank + 3%, min.6 USD withdrawal commission fee, (15USD+0,75USD+0,3USD+6 USD) = 22,05 USD, 22,05 USD*3GEL (bank Exchange rate) = 66,15 GEL

*** Deducted funds calculated as:

5% margin released and again become available on the client's account, so deducted funds 15 USD + 2% exchange commission of the bank + 3%, min.6 USD withdrawal commission fee, (15USD+0,3USD+6 USD) = 21,3 USD, 21,3 USD*3GEL (bank Exchange rate) = 63,9GEL,

Note that date of transaction and date of reflecting on the account may differ; moreover, date of transaction reflection on the account and currency exchange transaction date may also differ. 

Example 2: The POS purchase transactions in Georgia

 

Customer Account currency

Customer Account balance

USD

50

     

 

Amount requested by the customer – 100 GEL

Bank Conversion ratio - 100GEL = 30 USD

 

As transaction currency is other than the card currency, 2% exchange commission bank fee will be deducted. But, due to the fact that transaction currency is the same as the settlement currency, agreed between bank and Payment system (GEL, USD) margin of 5% is not applied.

Taking into consideration that within the country, despite the fact that the client's card currency is USD, all POS purchase transactions can only be made in GEL; final debit amount will be GEL and conversion from GEL to USD will be made to the card account at the rate set by the bank (currently, the same as National Bank of Georgia) on the day of transaction reflection.

 

USD

Transaction currency

Account balances

50

-

Requested funds

-

-100GEL*

Blocked funds**

30,60

-

Deducted funds***

30.60

-

Balances in accounts after conversion and debiting

19.40

-

* Sample exchange rate:  1GEL=0.30USD,

** Blocked funds calculated as: 100GEL=30USD, 100GEL + 2% exchange commission of the bank, (100GEL+2GEL) = 102GEL, 102GEL*0.30USD (bank Exchange rate) = 30.60 USD

*** Deducted funds calculated as: 100 GEL + 2% exchange commission bank fee (100GEL+2GEL) = 102GEL, 102GEL*0.30USD (bank Exchange rate) = 30.60 USD

Note that date of transaction and date of reflecting on the account may differ; moreover, date of transaction reflection on the account and currency exchange transaction date may also differ. 

 

 

 

Information on the sources of currency exchange rates: