diff --git a/changelog/fix-9996-currency-conversion-fee-phrasing b/changelog/fix-9996-currency-conversion-fee-phrasing
new file mode 100644
index 00000000000..bdee2cbc00f
--- /dev/null
+++ b/changelog/fix-9996-currency-conversion-fee-phrasing
@@ -0,0 +1,4 @@
+Significance: minor
+Type: fix
+
+Use "currency conversion fee" instead "foreign exchange fee" in payment timeline and various other places.
diff --git a/client/payment-details/timeline/map-events.js b/client/payment-details/timeline/map-events.js
index b76f659ac63..7e5570ce8ce 100644
--- a/client/payment-details/timeline/map-events.js
+++ b/client/payment-details/timeline/map-events.js
@@ -410,12 +410,12 @@ export const feeBreakdown = ( event ) => {
 			fixedRate !== 0
 				? __(
 						/* translators: %1$s% is the fee percentage and %2$s is the fixed rate */
-						'Foreign exchange fee: %1$s%% + %2$s',
+						'Currency conversion fee: %1$s%% + %2$s',
 						'woocommerce-payments'
 				  )
 				: __(
 						/* translators: %1$s% is the fee percentage */
-						'Foreign exchange fee: %1$s%%',
+						'Currency conversion fee: %1$s%%',
 						'woocommerce-payments'
 				  ),
 		'additional-wcpay-subscription':
diff --git a/client/payment-details/timeline/test/__snapshots__/map-events.js.snap b/client/payment-details/timeline/test/__snapshots__/map-events.js.snap
index 4126cb1ff38..b229ba674be 100644
--- a/client/payment-details/timeline/test/__snapshots__/map-events.js.snap
+++ b/client/payment-details/timeline/test/__snapshots__/map-events.js.snap
@@ -397,7 +397,7 @@ exports[`mapTimelineEvents single currency events formats captured events with f
           International card fee: 1.5%
         </li>
         <li>
-          Foreign exchange fee: 2%
+          Currency conversion fee: 2%
         </li>
         <li>
           Discount
diff --git a/client/utils/account-fees.tsx b/client/utils/account-fees.tsx
index 711d3d337ed..a1c8056f78d 100644
--- a/client/utils/account-fees.tsx
+++ b/client/utils/account-fees.tsx
@@ -166,7 +166,7 @@ export const formatMethodFeesTooltip = (
 			) }
 			{ hasFees( accountFees.fx ) ? (
 				<div>
-					<div>Foreign exchange fee</div>
+					<div>Currency conversion fee</div>
 					<div>{ getFeeDescriptionString( accountFees.fx ) }</div>
 				</div>
 			) : (
diff --git a/client/utils/test/__snapshots__/account-fees.tsx.snap b/client/utils/test/__snapshots__/account-fees.tsx.snap
index 89321bc7582..d92aa6ae54e 100644
--- a/client/utils/test/__snapshots__/account-fees.tsx.snap
+++ b/client/utils/test/__snapshots__/account-fees.tsx.snap
@@ -23,7 +23,7 @@ exports[`Account fees utility functions formatMethodFeesTooltip() displays base
     </div>
     <div>
       <div>
-        Foreign exchange fee
+        Currency conversion fee
       </div>
       <div>
         1%
@@ -102,7 +102,7 @@ exports[`Account fees utility functions formatMethodFeesTooltip() displays base
     </div>
     <div>
       <div>
-        Foreign exchange fee
+        Currency conversion fee
       </div>
       <div>
         1%
diff --git a/includes/class-wc-payments-captured-event-note.php b/includes/class-wc-payments-captured-event-note.php
index 10c48567952..07e902d8632 100644
--- a/includes/class-wc-payments-captured-event-note.php
+++ b/includes/class-wc-payments-captured-event-note.php
@@ -327,9 +327,9 @@ private function fee_label_mapping( int $fixed_rate, bool $is_capped ) {
 
 		$res['additional-fx'] = 0 !== $fixed_rate
 			/* translators: %1$s% is the fee percentage and %2$s is the fixed rate */
-			? __( 'Foreign exchange fee: %1$s%% + %2$s', 'woocommerce-payments' )
+			? __( 'Currency conversion fee: %1$s%% + %2$s', 'woocommerce-payments' )
 			/* translators: %1$s% is the fee percentage */
-			: __( 'Foreign exchange fee: %1$s%%', 'woocommerce-payments' );
+			: __( 'Currency conversion fee: %1$s%%', 'woocommerce-payments' );
 
 		$res['additional-wcpay-subscription'] = 0 !== $fixed_rate
 			/* translators: %1$s% is the fee percentage and %2$s is the fixed rate */
diff --git a/tests/fixtures/captured-payments/discount.json b/tests/fixtures/captured-payments/discount.json
index 2fa6a911d74..5bf6f936c45 100644
--- a/tests/fixtures/captured-payments/discount.json
+++ b/tests/fixtures/captured-payments/discount.json
@@ -60,7 +60,7 @@
     "feeBreakdown": {
       "base": "Base fee: 2.9% + $0.30",
       "additional-international": "International card fee: 1%",
-      "additional-fx": "Foreign exchange fee: 1%",
+      "additional-fx": "Currency conversion fee: 1%",
       "discount": {
         "label": "Discount",
         "variable": "Variable fee: -4.9%",
diff --git a/tests/fixtures/captured-payments/foreign-card.json b/tests/fixtures/captured-payments/foreign-card.json
index 234878b2372..df45c326d62 100644
--- a/tests/fixtures/captured-payments/foreign-card.json
+++ b/tests/fixtures/captured-payments/foreign-card.json
@@ -53,7 +53,7 @@
     "feeBreakdown": {
       "base": "Base fee: 2.9% + $0.30",
       "additional-international": "International card fee: 1%",
-      "additional-fx": "Foreign exchange fee: 1%"
+      "additional-fx": "Currency conversion fee: 1%"
     },
     "netString": "Net payout: $95.47 USD"
   }
diff --git a/tests/fixtures/captured-payments/fx-decimal.json b/tests/fixtures/captured-payments/fx-decimal.json
index b95e9318c84..2f065036122 100644
--- a/tests/fixtures/captured-payments/fx-decimal.json
+++ b/tests/fixtures/captured-payments/fx-decimal.json
@@ -45,7 +45,7 @@
     "feeString": "Fee (3.9% + $0.30): -$4.39",
     "feeBreakdown": {
       "base": "Base fee: 2.9% + $0.30",
-      "additional-fx": "Foreign exchange fee: 1%"
+      "additional-fx": "Currency conversion fee: 1%"
     },
     "netString": "Net payout: $100.65 USD"
   }
diff --git a/tests/fixtures/captured-payments/fx-partial-capture.json b/tests/fixtures/captured-payments/fx-partial-capture.json
index f10ff7aa9e9..691390d4852 100644
--- a/tests/fixtures/captured-payments/fx-partial-capture.json
+++ b/tests/fixtures/captured-payments/fx-partial-capture.json
@@ -57,7 +57,7 @@
     "feeString": "Fee (3.51% + £0.21): -$0.88",
     "feeBreakdown": {
       "base": "Base fee: 2.9% + $0.30",
-      "additional-fx": "Foreign exchange fee: 1%",
+      "additional-fx": "Currency conversion fee: 1%",
       "discount": {
         "label": "Discount",
         "variable": "Variable fee: -0.39%",
diff --git a/tests/fixtures/captured-payments/fx-with-capped-fee.json b/tests/fixtures/captured-payments/fx-with-capped-fee.json
index 8c1b602a3eb..4c31a8435d7 100644
--- a/tests/fixtures/captured-payments/fx-with-capped-fee.json
+++ b/tests/fixtures/captured-payments/fx-with-capped-fee.json
@@ -55,7 +55,7 @@
     "feeBreakdown": {
       "base": "Base fee: capped at $6.00",
       "additional-international": "International card fee: 1.5%",
-      "additional-fx": "Foreign exchange fee: 1%"
+      "additional-fx": "Currency conversion fee: 1%"
     },
     "netString": "Net payout: $971.04 USD"
   }
diff --git a/tests/fixtures/captured-payments/fx.json b/tests/fixtures/captured-payments/fx.json
index 8ceee7b7438..f18ca9297ab 100644
--- a/tests/fixtures/captured-payments/fx.json
+++ b/tests/fixtures/captured-payments/fx.json
@@ -46,7 +46,7 @@
     "feeString": "Fee (3.9% + $0.30): -$4.20",
     "feeBreakdown": {
       "base": "Base fee: 2.9% + $0.30",
-      "additional-fx": "Foreign exchange fee: 1%"
+      "additional-fx": "Currency conversion fee: 1%"
     },
     "netString": "Net payout: $95.84 USD"
   }
diff --git a/tests/fixtures/captured-payments/jpy-payment.json b/tests/fixtures/captured-payments/jpy-payment.json
index 6c7a6b3ee05..4b4c6c152c9 100644
--- a/tests/fixtures/captured-payments/jpy-payment.json
+++ b/tests/fixtures/captured-payments/jpy-payment.json
@@ -57,7 +57,7 @@
 		"feeBreakdown": {
 			"base": "Base fee: 3.6%",
 			"additional-international": "International card fee: 2%",
-			"additional-fx": "Foreign exchange fee: 2%"
+			"additional-fx": "Currency conversion fee: 2%"
 		},
 		"netString": "Net payout: ¥4,507 JPY"
 	}
diff --git a/tests/fixtures/captured-payments/subscription.json b/tests/fixtures/captured-payments/subscription.json
index b7312ea0c02..d0e1fe705e4 100644
--- a/tests/fixtures/captured-payments/subscription.json
+++ b/tests/fixtures/captured-payments/subscription.json
@@ -53,7 +53,7 @@
     "feeString": "Fee (4.9% + $0.30): -$3.04",
     "feeBreakdown": {
       "base": "Base fee: 2.9% + $0.30",
-      "additional-fx": "Foreign exchange fee: 1%",
+      "additional-fx": "Currency conversion fee: 1%",
       "additional-wcpay-subscription": "Subscription transaction fee: 1%"
     },
     "netString": "Net payout: $52.87 USD"