GBP interbank @ 1.365, Barclays/Visa uses 1.49, Chase/Mastercard 1.46
Post the fall in the value of GBP after the Brexit vote on Thursday, decided to charge two GBP 2,200 charges each to Barclays Arrival/Mastercard and Chase UA/Visa.
The transactions were put through by phone with merchant on Saturday, 25 June
The interbank FX rate on Friday 24 June had closed around 1.365
Barclays Arrival/Mastercard rejected the charge for some other reasons, but in "pending authorisations" I see they have used a rate of 1.49!!. The CS claimed this is "because we charge 25% on cash advances"!!! The supervisor said the current rate is 1.3608 and that is the rate which will ultimately be charged if and when the transaction goes through.
Chase UA/Visa charge for the same amount GBP 2,200 went through at a rate of GBP1 = $1.46, better than Barclays/Mastercard, but still way higher than interbank.
Tried to call Chase CC, but "our systems are down, we cannot take your call so please call back". Secured message has elicited a " relevant department will get back to you in two days" response
Do these credit card companies debit at a higher rate than adjust to a rate closer to market rate? As the charges were incurred on a Saturday, will they want to wait till Monday and use Monday's rate?
First time have looked at this whole issue, and very confused.
Last edited by SingaporeDon; Jun 25, 2016 at 12:59 pm