Foreign exchange rates discussion [FOREX]--all cards
Jan 24, 2016, 9:13 am
#151
Join Date: Nov 2012
Posts: 3,537
I just made 2 identical charges in some foreign currency, a few seconds apart. I used a Chase card for the first charge and a Cap one quicksilver for the second.
The dollar amount with the Chase card was about 0.5% higher than the Capone!
I thought that these credit card companies are using mid market wholesale rates or something like that, and never imagined such a huge difference could be possible.
Anybody has some insight on how this works? Is it perhaps that one bank has a longer lag in updating their conversion rates and therefore would sometimes be higher and sometimes lower than banks with a shorter lag? If not, which credit card companies generally use the conversion rates which are best for the consumers?
The dollar amount with the Chase card was about 0.5% higher than the Capone!
I thought that these credit card companies are using mid market wholesale rates or something like that, and never imagined such a huge difference could be possible.
Anybody has some insight on how this works? Is it perhaps that one bank has a longer lag in updating their conversion rates and therefore would sometimes be higher and sometimes lower than banks with a shorter lag? If not, which credit card companies generally use the conversion rates which are best for the consumers?
Jan 24, 2016, 9:50 am
#152
Join Date: Jul 2012
Programs: Delta Gold, Alaska Gold 75K, LATAM Black
Posts: 3,393
0.5% higher foreign exchange rate with Chase vs Cap one
There was a post here on FT maybe a few months ago with a guy who tested about a bunch of cards and their forex fees. Try to look it up. It was really interesting
Jan 24, 2016, 10:36 am
#153
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,953
Jan 25, 2016, 11:00 am
#155
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,953
Jan 25, 2016, 2:32 pm
#156
Join Date: Oct 2011
Programs: TK E+
Posts: 398
I wrote a python script to pull data from visa/mastercard (xe requires you to pay $ to access their API)
probably against visa/mastercard ToS to host it on a website.... might convert this into a Chrome extension to make it more user friendly if I'm not lazy...
http://pastebin.com/Khe7J3a1
probably against visa/mastercard ToS to host it on a website.... might convert this into a Chrome extension to make it more user friendly if I'm not lazy...
http://pastebin.com/Khe7J3a1
Feb 3, 2016, 5:53 pm
#157
Join Date: May 2011
Location: Aotearoa New Zealand
Programs: United 1K, Air New Zealand, Qantas, Alaska, etc.
Posts: 56
Barclays charging hidden foreign exchange fees
Barclays has started charging a hidden foreign exchange fee on their Arrival+ (and presumably other cards, as well). I'd used the Arrival+ for some largish transactions in New Zealand dollars last year, and saw that they applied the expected exchange rate for the settlement date as quoted by MasterCard (https://www.mastercard.com/global/currencyconversion/) I did some more transactions in January, but now the exchange rate used by Barclays is around .5-1.0+% in their favor.
This appears to be a violation of their terms and conditions. If you're using Barclays for an large foreign currency purchases you might want to check this for yourself and confirm - the USD amount should match that quoted by MasterCard for the settlement date, which would typically be the next U.S. business day after the transaction took place.
I've confirmed that Citi is still using the MasterCard rates on their cards, at least the Premier.
I've tried contacting Barclays about this but have gotten nowhere, with secure mails just sending me canned responses and live representatives saying they have no control over the exchange rate. Seems like a great class action suit in the making.
This appears to be a violation of their terms and conditions. If you're using Barclays for an large foreign currency purchases you might want to check this for yourself and confirm - the USD amount should match that quoted by MasterCard for the settlement date, which would typically be the next U.S. business day after the transaction took place.
I've confirmed that Citi is still using the MasterCard rates on their cards, at least the Premier.
I've tried contacting Barclays about this but have gotten nowhere, with secure mails just sending me canned responses and live representatives saying they have no control over the exchange rate. Seems like a great class action suit in the making.
Last edited by Flying Kiwi; Feb 3, 2016 at 6:12 pm
Feb 3, 2016, 7:36 pm
#158
Join Date: Dec 2009
Location: New York, NY
Programs: AA Gold. UA Silver, Marriott Gold, Hilton Diamond, Hyatt (Lifetime Diamond downgraded to Explorist)
Posts: 6,776
Sounds like Dynamic Currency Conversion to me. Is it illegal? Don't think so. Is it a shady practice? I do think so.
Feb 3, 2016, 9:29 pm
#159
Join Date: May 2011
Location: Aotearoa New Zealand
Programs: United 1K, Air New Zealand, Qantas, Alaska, etc.
Posts: 56
Anyway, no, this is not a DCC issue. This is an issue with regular purchases charged in the foreign currency.
Last edited by mia; Feb 4, 2016 at 7:25 am Reason: Remove note to moderator
Feb 5, 2016, 3:34 pm
#160
Join Date: Oct 2005
Location: SF
Programs: UA, VX, QF, EY, VA
Posts: 756
Feb 6, 2016, 7:07 am
#161
Join Date: Feb 2013
Location: Irvine CA & PEK
Programs: Hyatt Globalist, Marriott Titanium, Hilton Diamond, IHG Spire Ambassador, Qantas Platinum, United S
Posts: 664
Guys, I'm here for an easy answer.
For Singapore, should I use Amex SPG or Barclay Arrival+?
My feeling is that they are about the same for USD/JPY, but 1 SPG point is in my idea more valuable than 2 Arrival points. Therefore I used Amex SPG mostly in Japan.
Do you guys have different opinions?
For Singapore, should I use Amex SPG or Barclay Arrival+?
My feeling is that they are about the same for USD/JPY, but 1 SPG point is in my idea more valuable than 2 Arrival points. Therefore I used Amex SPG mostly in Japan.
Do you guys have different opinions?
Feb 6, 2016, 7:31 am
#162
Join Date: Nov 2012
Posts: 3,537
Guys, I'm here for an easy answer.
For Singapore, should I use Amex SPG or Barclay Arrival+?
My feeling is that they are about the same for USD/JPY, but 1 SPG point is in my idea more valuable than 2 Arrival points. Therefore I used Amex SPG mostly in Japan.
Do you guys have different opinions?
For Singapore, should I use Amex SPG or Barclay Arrival+?
My feeling is that they are about the same for USD/JPY, but 1 SPG point is in my idea more valuable than 2 Arrival points. Therefore I used Amex SPG mostly in Japan.
Do you guys have different opinions?
Feb 6, 2016, 10:59 pm
#163
Join Date: Feb 2013
Location: Irvine CA & PEK
Programs: Hyatt Globalist, Marriott Titanium, Hilton Diamond, IHG Spire Ambassador, Qantas Platinum, United S
Posts: 664
I will test again soon as I'm heading to Singapore. Maybe I'll find a convenience store and do two swipes.
I kind of think Amex uses almost the same rates as MC does, and I would like to know whether your experience explicitly tells differently, thanks~
Feb 7, 2016, 3:53 am
#164
Join Date: Nov 2012
Posts: 3,537
Jan 3 I did a $100 transaction in Tokyo using A+, and the rate was fine...
I will test again soon as I'm heading to Singapore. Maybe I'll find a convenience store and do two swipes.
I kind of think Amex uses almost the same rates as MC does, and I would like to know whether your experience explicitly tells differently, thanks~
I will test again soon as I'm heading to Singapore. Maybe I'll find a convenience store and do two swipes.
I kind of think Amex uses almost the same rates as MC does, and I would like to know whether your experience explicitly tells differently, thanks~