How do currency conversions work with a VCC on Twitter Ads?

Currency conversions with a Virtual Credit Card (VCC) on Twitter Ads work similarly to how they do with regular credit cards or debit cards. Here's a breakdown of how they work, along with some key points to consider:

1. Currency Conversion on Twitter Ads
When you run ads on Twitter, you are billed in the currency associated with the country of your Twitter Ads account. For example:

If your account is set to a US region, Twitter will bill you in USD.

If your account is set to a European region, you may be billed in EUR, GBP, or another local currency.

2. Payment Using a VCC
When you link a Virtual Credit Card (VCC) to your Twitter Ads account, Twitter will attempt to charge the VCC in the local currency of your Twitter Ads account (e.g., USD for US accounts). If your VCC is denominated in a different currency (e.g., GBP or EUR), the VCC provider will automatically convert the amount into the currency of the card.

3. Currency Conversion Process
The conversion process works as follows:

Currency Conversion Fee: Your VCC provider may charge a foreign transaction fee (typically 1-3% of the total amount) for converting the currency. This fee is added on top of the original ad spend.

Exchange Rate: The VCC provider uses their own exchange rate, which may differ slightly from the market rate. The exchange rate applied at the time of the transaction is generally determined by the VCC issuer, such as Revolut, Privacy.com, or Wise.

Real-Time Conversion: The conversion typically happens in real time when the transaction is processed. If the currency conversion rate changes between the time of the charge and the payment, the VCC provider will apply the new rate when they charge your card.

4. Example of How It Works
Let's say you have a VCC denominated in GBP (British Pounds), but you are running a campaign on a Twitter Ads account set to USD (United States Dollars).

Step 1: You are charged $100 for your Twitter Ads campaign.

Step 2: The VCC provider sees that the charge is in USD, but your card is in GBP.

Step 3: The provider will convert the $100 to GBP using their exchange rate.

Step 4: If there's a foreign transaction fee of 2%, your final charge would be $100 (converted to GBP) + the 2% fee.

The final amount deducted from your VCC might look like this:

Conversion to GBP: $100 x 0.75 (exchange rate) = £75.

Foreign Transaction Fee: £75 + (2% fee) = £76.50.

So, your VCC will be charged £76.50 for a $100 USD campaign, depending on the provider's exchange rate and fees.

5. Minimizing Currency Conversion Fees
If you want to minimize the extra cost of currency conversion, here are some tips:

Choose a VCC with no foreign transaction fees: Some providers, like Revolut and Wise, offer VCCs that charge no foreign transaction fees and use more competitive exchange rates.

Use a VCC in the same currency as your Twitter Ads account: If possible, use a VCC in the same currency as the account you're running ads on. For example, if your Twitter Ads account is in USD, consider using a VCC denominated in USD to avoid conversion altogether.

Check for better exchange rates: Some VCC providers offer better exchange rates than others, so compare rates before making large transactions.

Preload your VCC with the appropriate currency: Some providers, like Revolut, allow you to hold multiple currencies in a single account, so you can pre-load your VCC with the exact currency of your Twitter Ads account.

6. Considerations for Multi-Currency Campaigns
If you're running ads on multiple accounts set to different currencies (e.g., USD, EUR, GBP), you may end up using a VCC with multi-currency support, which can help you better manage conversions and fees.

Multi-currency VCC providers: Some providers, like Wise and Revolut, allow you to hold and spend in multiple currencies. This way, you can use the appropriate currency for each campaign without incurring extra conversion fees.

Separate VCCs for different currencies: If you're managing multiple Twitter Ads accounts in different currencies, it's a good practice to use a separate VCC for each account to avoid currency conversion fees entirely.

7. Tracking Currency Conversion
Most VCC providers offer detailed transaction records, showing you both the original charge (in the campaign's currency) and the converted charge (in the currency of your VCC). This allows you to track any additional costs due to currency conversion.

Summary:
Currency conversion on Twitter Ads when using a VCC involves:

Conversion of the ad charge from the account's billing currency to the VCC's currency.

Potential foreign transaction fees (1-3%) for the conversion.

Provider exchange rates that may differ from market rates.

To minimize fees, use a VCC that either matches the currency of your Twitter Ads account or one that charges no foreign transaction fees. Using multi-currency VCCs can also simplify the process when managing multiple campaigns in different currencies.