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Foreign exchange rates discussion [FOREX]--all cards

Foreign exchange rates discussion [FOREX]--all cards

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Old Dec 13, 15, 1:07 am
  #136  
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I thought extra fees like the MC ones above were supposed to be separate line items on statements now. I seem to recall a massive lawsuit that was settled by agreeing to such, anyway.
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Old Dec 13, 15, 6:38 am
  #137  
 
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Originally Posted by Bow Rider View Post
I'll second the awesome thread comment, very useful information.

FWIW, Charles Schwab offers an ATM/debit card with no foreign exchange fees and no ATM fees anywhere in the world (though it is a VISA card). The underlying checking account has no minimum balance or monthly fees. You have to open a brokerage account at the same time although you don't have to fund it. Applying incurs a hard pull.

After reading this thread the VISA card aspect makes it somewhat less desirable but I think it is still better than any other cash getting card that I have. I'll be in Chile next week and I'll compare exchange rates with a USAA MC debit card.
They pull your Equifax. Which is my least pulled CR. I just applied yesterday and they said they couldn't verify so I need to send them a paper application. Sigh. Probably because my employer doesn't show up on my CR.

Probably will lead to a double pull. But don't care since my valuable CRs are from Experian followed by Transunion. I also don't plan to apply for any new credit so all my inquiries will most likely drop in the next 2 years.
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Old Dec 17, 15, 8:44 am
  #138  
 
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I just started using the Revolut (prepaid) MasterCard for foreign currency transactions. I purchased Swedish rail tickets yesterday online. 909 SEK and it hit my card at $106.76 - which was dead on for xe.com and google conversion rates yesterday (would've cost me slightly less today). I pull the cash from my bank account in $s and pay in local currency.
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Old Dec 17, 15, 1:29 pm
  #139  
 
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Originally Posted by Phantom707 View Post
I'm reporting what I've read from other threads. http://www.flyertalk.com/forum/credi...ose-1-fee.html

According to those comments, the A+ does charge a FTF. Barclay doesn't charge it, but MasterCard does (and this enables Barclay to claim it as a no FTF card). This is usually offset by the lower exchange rate that MasterCard offers.

However, that doesn't mean that it will always be offset by the exchange rate, and it does mean that there is still a FTF in principle, even if not in effect.

Again, I'm not commenting on my own experience regarding the Arrival+. I'm only reporting what others have said.

Edit: I do see that you, patrick.barnes did comment in that thread. However, there are people who directly responded to your statements with counterclaims. Again, I don't have personal experience with the Arrival+ and am only reporting.
Those people are quoting clueless front line CSR and are not actually basing their posts on actual transaction data.

No one can get a 100% accurate FX spot rate since that rate changes every microsecond. I'm just saying that over thousands of transactions, the MC FX rate is as close to interbank rates as possible, and that neither the A+ or Citi MC cards marketed as 0% FTF include any additional mark up over the advertised MC rates.

Meanwhile, rates on Visa cards claiming 0% FTF *do* include a hidden markup of up to 1%. I've run the same transactions in the same currencies on 4 different cards at exactly the same time to confirm all of the above. My A+ and Citi Prestige gave me identical rates, and my Chase CSP and CU issued Visa gave identical (craptacular) rates.

Amex just gives you a rate they determine which has no basis in reality apart from being "close enough". It tends to be on par with the Visa rate or slightly better.

I doubt any of this stuff matters to most people, but for those that spend a lot of money internationally... Seems worth it to save ~1% on each transaction by using a MC.
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Old Dec 17, 15, 5:36 pm
  #140  
 
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Originally Posted by patrick.barnes View Post
Those people are quoting clueless front line CSR and are not actually basing their posts on actual transaction data.

No one can get a 100% accurate FX spot rate since that rate changes every microsecond. I'm just saying that over thousands of transactions, the MC FX rate is as close to interbank rates as possible, and that neither the A+ or Citi MC cards marketed as 0% FTF include any additional mark up over the advertised MC rates.

Meanwhile, rates on Visa cards claiming 0% FTF *do* include a hidden markup of up to 1%. I've run the same transactions in the same currencies on 4 different cards at exactly the same time to confirm all of the above. My A+ and Citi Prestige gave me identical rates, and my Chase CSP and CU issued Visa gave identical (craptacular) rates.

Amex just gives you a rate they determine which has no basis in reality apart from being "close enough". It tends to be on par with the Visa rate or slightly better.

I doubt any of this stuff matters to most people, but for those that spend a lot of money internationally... Seems worth it to save ~1% on each transaction by using a MC.
No they're not. At least one person is reporting first hand experience. http://www.flyertalk.com/forum/25046389-post7.html Albeit yes, that's hearsay, but there are other examples through the thread.

This person, http://www.flyertalk.com/forum/25055865-post31.html, reports that the Barclay Arrival+ consistently was higher than a Capital One Visa card.

Just because your experience says one thing doesn't mean that it can be generalized to everyone else. It's possible other people experienced differences with the same card, and the reports are that this has happened.
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Old Dec 18, 15, 12:17 am
  #141  
 
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Visa ups their spread?

I have a Canadian dollar, no FTF Visa credit card issued by Chase Canada (it's an Amazon.ca branded card). I've been paying with it while living in Australia half time. The forex cost of using it for expenses here has compared favourably with any method for bringing lump sums from Canada, even without considering the 1% dividend Chase pays on all purchases.

I have routinely monitored the actual exchange rate charged on each Australian dollar transaction and it has always been equal, or very close, to the daily rates published here by Visa Inc. I think any differences are due to wide swings in the rate within a day.

What has struck me recently is that the spread between Visa's rates and those reported by OANDA or XE suddenly widened on Dec 5 2015. For the 2.5 years I've been using the card, the spread has always been about half a percentage point. Suddenly it has jumped to about 1.25 percentage points for my last 26 transactions. I've sent a note asking Visa about it.

In the meantime I'm wondering if anyone can shed some light on the relationship between Visa's rates and the interbank rates, for this or any other currency pairs?
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Old Dec 18, 15, 9:01 pm
  #142  
 
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Just would like to share my data points in China.

I happened to have three pretty large transactions in Beijing over a less-than-24-hour-span. Here are the numbers:

1) Ritz Carlton from Chase (Visa): CNY 20636 to USD 3193.69, 6.46149
2) SPG Business from Amex (Amex): CNY 619.90 to USD 95.97, 6.45931
3) IHG from Chase (MC): CNY 17119.13 to USD 2644.98, 6.47231

The first happens at 2pm, second at 8pm, third at 10am the next day.

If we leave how different networks calculate rates aside, and just compare how transactions in a short timespan are converted into USD, we can see at least in China, Visa doesn't have the big disadvantage it has in other countries. Maybe because CNY is a controlled currency?

The MC transaction might be a little irrelevant, as CNY is going down every second these days...
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Old Dec 19, 15, 9:09 am
  #143  
 
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I've found discover is usually accepted around South America.
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Old Dec 19, 15, 8:22 pm
  #144  
 
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Test today:

38,000 COP @ midmarket exchange rate of 3328.50.

Chase Sapphire Preferred: 11.40
Discover IT: 11.34

So for all the Discover bashing going on, I thought this was an interesting point. I made the same purchase yesterday on Discover and got the exact same exchange rate, so I'm not sure what day or formula they use.

All that being said, I've found that here in Colombia at least, Discover IT is accepted everywhere that Visa is, and the exchange rate seems to be the same or better.

Cheers
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Old Jan 3, 16, 6:33 pm
  #145  
 
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The pound to dollar rate is absolutely disgusting right now.
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Old Jan 3, 16, 7:57 pm
  #146  
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Originally Posted by Owenc View Post
The pound to dollar rate is absolutely disgusting right now.
That depends on your point of view

Wish I had the time to come and visit ....
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Old Jan 4, 16, 1:53 am
  #147  
 
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Originally Posted by Owenc View Post
The pound to dollar rate is absolutely disgusting right now.
Pretty good from the American to UK. It used to be 2 USD to 1 GBP at one point in the past.
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Old Jan 5, 16, 6:40 pm
  #148  
 
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I did two identical charges on SGD in-store within a space of seconds (same card machine) with Chase Sapphire Preferred Visa and Barclays AA MC.

Chase Visa gave a rate of 1.41137 SGD/USD
Barclay MC gave a rate of 1.4200 SGD/USD

Chase rate is worse off by USD4.42 per SGD1000. This transaction was on 1/1. I don't know if that day being a public holiday made the difference worse since Visa had to pre-set the rate before the holiday.
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Old Jan 6, 16, 6:40 am
  #149  
 
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Originally Posted by Owenc View Post
The pound to dollar rate is absolutely disgusting right now.
Go to Canada instead? The pound is getting around 2.05 Canadian. 😀
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Old Jan 24, 16, 8:31 am
  #150  
 
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0.5% higher foreign exchange rate with Chase vs Cap one

I just made 2 identical charges in some foreign currency, a few seconds apart. I used a Chase card for the first charge and a Cap one quicksilver for the second.

The dollar amount with the Chase card was about 0.5% higher than the Capone!

I thought that these credit card companies are using mid market wholesale rates or something like that, and never imagined such a huge difference could be possible.

Anybody has some insight on how this works? Is it perhaps that one bank has a longer lag in updating their conversion rates and therefore would sometimes be higher and sometimes lower than banks with a shorter lag? If not, which credit card companies generally use the conversion rates which are best for the consumers?
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