MilesBuzz! - Best possible exchange rate on a Credit Card?

To my knowledge VISA charges 1% conversion fees on top of the interbank rate for foreign currency conversions. AMEX 1.5 - 2%.

Any better rates around? What about discounts for large transfers?

From a recent discussion [search here at or TravelBuzz], I think the consensus is that Amex or Diner's Club is the best choice for international currency rates.

"Large transfers" means something entirely different to bankers than it does to most travelers. There are two components to the cost of exchanging currencies: fees such as flat, per-transaction charges -- and spread. The spread can end up being the far more costly part of the equation. If your card charges 1-2% on the spread in foreign currency transactions, but charges insignificant additional fees and adheres very closely to the official exchange rate charged for large interbank transactions, (with the exception of the 1.5%-2% on the spread mentioned), that is not really a bad deal. Shop around if you like, but you are dealing with small potatoes in the broad scheme of things and that overall cost is generally far better than you will ever find trading actual currency in most situations. (Oten, exchange booths may trumpet a great exchange rate on their signs and then beat you up with "commission" and an additional flat transaction fee that makes your value shrink considerably). American Express deservedly tends to get high marks for its international travel support and it tends to cater to a well-traveled, sophisticated customer base as a result.

This thread is off topic for MilesBuzz, discussion can be found and continued on FlyerTalk Travel at:

http://www.flyertalk.com/travel/fttravel_forum/Forum11/HTML/006095.html



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burkey
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MilesBuzz
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I can't find the thread where we discussed this several months ago.

No, it's not Amex or Diners Club. I believe that they both charge a 2% surcharge.

The winner is the FUSA UA Visa card which charges no additional markup over the 1% markup charged by Visa USA over the wholesale interbank rate on foreign currency transactions.

An article (http://www.bankrate.com/brm/news/cc/20010416a.asp) at www.bankrate.com (http://www.bankrate.com) also lists Capital One, Wachovia, Fleet and MBNA as banks that add no additional surcharges on foreign transactions, but the article may be out of date, so check with your credit card company or fine print.

-David