I can't figure out how exactly banks enable me to pay in local currency abroad.
Can someone make a list of how the transaction actually happen, like in the following example for a domestic transfer:
- you scan your card at the shop
- payment system provider verifies your card
- you accept the payment
- the information is exchanged with your bank and it verifies that you possess the required amount
- the information is exchanged between the merchant bank account and your bank
- the transaction is recorded
- finally the banks clear the batch transactions at the end of the period
might not be accurate, but still it should be something similar.
But how does it work when you pay abroad in a local currency? Which bank exactly does the merchant get money from?
Does my bank buy the currency from that bank or buys it somewhere else and sends it to them? If someone can guide me through the process as detailed as possible I would appreciate it a lot.
Submitted February 08, 2019 at 05:02AM by GosuGamerL http://bit.ly/2WRGnwW
