Originally Posted by
zyxlsy
By looking at the info, my feeling is that the extra miles for oversea transactions in foreign currency is more like a offset of foreign currency conversion fee, right?
You see, you get 1 HKD for 2 HKD to 20HKD, and the conversion fee is like 2%? 1 for 2 is kind of an earning, but 1 for 20 just covers the conversion fee IMO...
Bit more than offset. Let's just say miles cost a bit under HK$0.07 (US$0.009).
Citi promo: $2/mile = .07/2 = 3.5%
HSBC promo: HK$20 spend = 1 RC = 15 miles = $1.05. $1.05/20 = 5.25%
The fee is 1.95%, of which V/MC takes 1% and banks 0.95%.
Even if RewardCash is exchanged for goods 95% of its face value (they can be exchanged for a form of store credit at supermarkets) then the rebate is still 4.75% > 1.95%.
Originally Posted by
zyxlsy
Can I assume HK banks are doing to just to promote oversea usage of their cards? Any other benefits to them?
Hope you can't pay your bill and rack up finance charges I guess.
Or spend so much you bust your promo limits and get ordinary earn at around $1/$250 spend.