What Is the LBK or LC charge on your bank statement?
Have you ever noticed a mysterious charge on your bank statement labeled as LBK or LC? You’re not alone. This puzzling charge has troubled a lot of people. Many people have wondered what does LBK or LC charge on your bank statement means.
In this article we will delve into the details of LBK or LC charge on your bank statement, finding its meaning, where does it came from and how to resolve unauthorized charges.
What is LBK or LC?
It is very important to understand the meaning of LBK and LC to understand this charge. LBK stands for “local bank charge,” while LC stands for “local currency.” These charges appear when you make a purchase or transaction in a different currency than your own, your bank may charge you a fee for converting the currency.

Learn about WLY COMPLETE SAVE.
Why does your bank charge you for converting currency?
The bank charges you for converting currency for multiple reasons.
Processing costs
When you make a transaction in a foreign currency, your bank has to convert the amount in foreign currency into your local currency in order to process the transaction. This conversion involves a few steps and can incur fees along the way.
Risk management
The value foreign currency is constantly fluctuating and can change multiple times throughout the day. Banks manage risks associated with currency fluctuations and international transactions by adding markup fee. This is where the LBK or LC charge comes into play.
Conversion fees
Banks charge a flat fee on transaction for the converting the foreign currency into the local currency.
Learn about Charter Service Charges on your bank statement.
How Do LBK or LC charge on your bank statement Appear?
LBK or LC charge on your bank statement appears in a single line and includes date, amount, and a brief description that may include merchant’s name, the type of transaction, or a reference number.
LBK or LC charges may appear on your statement even if you didn’t make a purchase or transaction in different country. It may be due to any recurring payment set up with a company that is based in a different country. In this your bank will still charge you of the processing fee.
How to minimize LBK or LC Charges
Use credit cards or debits as they don’t charge fees for foreign transaction. However, it’s important to note that these cards may have other fees or requirements, so be sure to do your research before applying.
Plan ahead and convert currency when rates are favorable
Open a multi-currency account as they don’t charge for foreign transaction.
LC as “Letter of Credit”
LC can also be used in a different context. A Letter of Credit is a financial instrument used in international trade that provide guarantee to the seller that they will receive payment from buyer. It is a guarantee from the buyer’s bank to the seller. If the buyer is unable to pay, his bank will pay the remaining amount on the behalf of buyer. This is how charges associated with letter of credit can appear on your bank statement.
Learn about SMART LLC on your bank statement.
Unauthorized LBK or LC charge on your bank statement
It is very important to be informed of the unauthorized charges as it is essential to manage your finances regularly. The possible unauthorized charges are as follow
Recurring payments
Recurring payments are one of the commonest unauthorized charges that may appear on your bank statement. Recurring payment may be set up with a company that is based in a different country. So make sure that LBK or LC charge on your bank statement are not from recurring payments.
Fraudulent activities
Fraudulent activity is becoming very common as scammers may use stolen card information for unauthorized transactions that may cause appearance of LBK or LC charges on your bank statement.
Resolving Unauthorized LBK or LC charges on your bank statement
Immediately contact your bank and inquire about the charges appearing on your credit card statement. Provide them all the details and if possible ask for refund.
Frequently monitor your account any suspicious activity. Keeping record of all the transactions would help you to stay at the top of your finances.
Closing:
In conclusion, LBK or LC charge on your bank statement are simply fees associated with converting currency for international transactions. LC can also be seen in other context where it simply means letter of credit, a document that guarantees the buyer’s payment to the sellers. LBK or LC charge on your bank statement are legitimate charges and understanding them help you manage your finances regularly.