When making payments on foreign websites using a Maldivian rufiyaa (MVR) card, the final amount deducted is often higher than the simple exchange rate calculation.

For example, a USD 100 purchase may appear to cost MVR 1,542 at a rate of MVR 15.42 per dollar. But bank statements may show a deduction closer to MVR 1,619, roughly 5 percent more.

According to Bank of Maldives (BML), this difference is not an error or hidden charge, but the result of standard cross-border transaction costs.

International payments pass through multiple institutions, each of which applies a fee. These typically include:

Since the transaction crosses borders, the payment is first converted from MVR into USD, and then into the merchant’s local currency. Each step introduces conversion costs, exchange rate margins and processing fees.

BML also charges an additional fee known as the Optional Issuer Fee (OIF), which is standard among banks offering international transactions.

Fees vary depending on the type of transaction:

The higher fee applies specifically to six platforms identified by BML as being widely used for commercial imports via personal cards:

BML says these fees were introduced to curb misuse of personal accounts for business imports and to prioritize essential foreign transactions.

However, these higher charges do not apply to cards linked to USD accounts.

BML reports that around USD 45 million is spent monthly on foreign transactions using its cards, with about 75 percent spent on online platforms. Of that, roughly USD 11 million is spent on the six listed e-commerce sites alone.

While online shopping may feel borderless, the financial system behind it is not. Understanding how and when these fees apply can help avoid surprises and make more informed spending decisions.