FlyerTalk Forums - View Single Post - Problem? USAA Switches from Mastercard to Visa
Old Oct 27, 2015 | 3:17 am
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Phantom707
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Originally Posted by AllieKat
Remember that Visa gives worse exchange rates than the other networks almost 100% of the time. Visa rates have a buy/sell spread. MasterCard rates don't. So the odds of Visa being in your favour are exceptionally low (though non-zero).
A purported upcoming benefit is elimination of foreign transaction fees. USAA charges a 1% fee unless you're on active duty. It's possible this change might swing in favor of customers who aren't in active duty.

And I've had a situation where a Mastercard exchange rate was worse than Visa (although this was less than a quarter of a percent). Many people do not realize that Mastercard implements a currency conversion fee and a cross border fee, totaling around 1.1%. This charge is passed on to banks who often pass it to customers. Because they didn't implement the fee, the banks are still able to advertise their cards as no foreign transaction fee. There's a thread on this forum about it.
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