Thanks kaka for the detailed and informative reply! haha i must admit it took me quite some time to get my head around with figures!! Didn't realise there was so much theory involved.
Let's see.
So if I want a return ticket from HKG-BNE for Christmas next year then, (assuming $7000 HKD tix) cpm=700000/60000=11.6
Since my valuation is not over 12cpm, this means that I can't justify using the VISA card to pay for anything IF the fees are 3%.
Just looking through the link posted and also your data below (THANKS SO MUCH!) it seems that the rate/premium ranges from less than 1% to a bit over 2% or so, which means that I shouldn't be losing out when using the card in Japan. (Please let me know if my reasoning is on the right track as I could be totally calculating wrongly
) Amex actually offers good rates sometimes but I suppose theres the risk of it suddenly charging a high premium. I'll probably take it along just in case. By the way, theres really no way of knowing how much was charged until you get the bill right?
Originally Posted by
kaka
Therefore, unless you have a valuation of over 12cpm(For $100 spending, you get 100/4=25miles, 25miles*12cpm=$3, 3% rebate), 3% fees does not cover the value of miles. Since I have a higher earn rate (with Fubon HK VI/MC or HSBC inc. "Red Hot Rewards of Your Choice"), I do pay by VI/MC in japan. YMMV in this respect.
Thanks to
percysmith,
http://www.hongkongcard.com/forum/fo...ow.php?id=3939 has a comprehensive view on exchange rates on different credit card. (edit: I'm surprised there isnt JPY analysis there, pls see below.)
Right. I've taken some data points from my last trip. Seems like HSBC fix the rate when it gets billed in their system (not when the purchase was made). i've gotten around 2% surcharge. so I do get my mile's worth. The only time I've hit over 3% charges was AMEX in GBP (see above link).
Post date hsbc rate oanda rate Premium
15/nov 10.28810 10.0918 1.95%
15/nov 10.28818 10.0918 1.95%
17/nov 10.30933 10.1059 2.01%
17/nov 10.30911 10.1059 2.01%
17/nov 10.30938 10.1059 2.01%
18/nov 10.31746 10.1096 2.06%
18/nov 10.31867 10.1096 2.07%
18/nov 10.31712 10.1096 2.05%
i calculate using oanda average rate because i usually get JPY within 0.5% of the average ask/bid quoted price. so the actual premium is 0.5% lower then the above quoted premium.