Originally Posted by
craz
I think what happens is VISA ups the rate by 1% before sending it onto the different banks, now if it does it by the foreign currency involved or the US$ that i dont know.
So if I was buying something for 100 AUD and the rate was say 1 to 1 so either Cap1 gets an invoice for 101 US$ or 101 AUD and then puts it on my acct.
i dont believe in my ex that Visa will bill Cap1 for 101 AUD but only charge me 100 AUD since they dont charge any Forex fees. they dont charge any but I do Believe they pass on Visas fees but dont tack on anything besides that
Every analysis we've run using actual forex market data from Bloomberg and transactions on a variety of cards indicate that the cards we say are 0% on the wiki are truly 0%. Sometimes the rates vary a bit, but they are
not consistently 1% more than the market interbank rates (they're as likely to come in at 1% below the market rate as they are to come in at 1% above the market rate).
Whether the bank is getting billed 101% by Visa/MC and only passing 100% to the customer, or if they just have an arrangement with Visa/MC to not tack on the 1% in the first place, from personal experience there does
not appear to be 1% added to CapOne or Schwab credit card transactions, or to Citigold, Schwab or TD Bank ATM transactions overseas.