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Foreign exchange rates discussion [FOREX]--all cards

Foreign exchange rates discussion [FOREX]--all cards

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Old Feb 25, 16, 6:27 am
  #196  
 
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This seems contrary to recent posts preferring Amex to Visa.
Actually it makes perfect sense, because earlier posts mentioned that Visa/Mastercard uses exchange rates on day of usage and Amex the day it settles (?). So in instances with a rapidly dropping currency you'll see Amex lose out. Conversely, when exchange rate is stable or currency is rising then Amex will come out ahead.

In reply to poster above
Still need to decide what to use for restaurants - I used to use my CSP for travel all the time but as noted above sounds like Visa FX rates haven't been great recently.
CSP is still worthwhile for dining. I use it for dining/taxi, because I consider 2x UR better than 1 SPG point or 2% cashback even with its higher f/x rate. Don't have a Citi ThankYou card for comparison.

For what its worth, I'm using Amex SPG for everyday spend, CSP for dining/taxi's and the Amex SPG for SPG hotel stays. I've kicked Barclays Arrival+ to the curb because of higher redemption threshold. I have a Capital One Quicksilver One Mastercard as backup for everyday spend, but haven't had a need to use it yet (useful if Marriott destroys SPG). Next time I get to the states hope to get a City Thankyou card and see how that works out.
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Old Feb 25, 16, 7:11 am
  #197  
 
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Originally Posted by luna6 View Post
Actually it makes perfect sense, because earlier posts mentioned that Visa/Mastercard uses exchange rates on day of usage and Amex the day it settles (?). So in instances with a rapidly dropping currency you'll see Amex lose out. Conversely, when exchange rate is stable or currency is rising then Amex will come out ahead.
With falling exchange rates, the charge in dollars should be lower the later the date that is used to calculate exchange rates. The pound has been getting cheaper (likely due to talk of Brexit).

If Visa uses day of usage and Amex uses the same or a later day, Amex should be the same or lower, rather than being about 1.25% higher.
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Old Feb 26, 16, 9:15 am
  #198  
 
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Originally Posted by luna6 View Post
Actually it makes perfect sense, because earlier posts mentioned that Visa/Mastercard uses exchange rates on day of usage and Amex the day it settles (?).
My observation is that MC and Visa use rates of the posting date (settlement date) as the posted amount are always different from the pending amount, where pending amount using rates of the transaction (usage) date. For Amex I'm not sure.
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Old Feb 26, 16, 6:41 pm
  #199  
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I want to make a large purchase using my MC over the weekend denominated in ZAR (it fell off a cliff today from 15.6 ZAR to 16.2 ZAR per 1 USD).I suppose the transaction will post next Monday. I've seen that VISA takes the 'worst' rate they can of the previous transaction date, but what about MC? Should I wait a bit longer?
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Old Feb 28, 16, 6:31 pm
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Originally Posted by G-CIVC View Post
I want to make a large purchase using my MC over the weekend denominated in ZAR (it fell off a cliff today from 15.6 ZAR to 16.2 ZAR per 1 USD).I suppose the transaction will post next Monday. I've seen that VISA takes the 'worst' rate they can of the previous transaction date, but what about MC? Should I wait a bit longer?
If it's a true market currency, then MC is almost always better than Visa.

However we should never expect that we can catch the best rate point... Or we will be making a fortune doing currency trading.
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Old Feb 28, 16, 6:44 pm
  #201  
 
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I've just done a test with 4 different cards:
Mastercard - the lowest
Discover - 0.35% higher than MC
Visa - 0.55% higher than MC
Amex - not yet showing with the USD equivalent (perhaps since there's no official trading now in the weekend)
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Old Feb 29, 16, 5:21 am
  #202  
 
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Originally Posted by richarddd View Post
With falling exchange rates, the charge in dollars should be lower the later the date that is used to calculate exchange rates. The pound has been getting cheaper (likely due to talk of Brexit).

If Visa uses day of usage and Amex uses the same or a later day, Amex should be the same or lower, rather than being about 1.25% higher.
Regarding Amex, not necessarily true.
This from Amex t&c's
"Unless otherwise required by law, we will chose a rate that is acceptable to us for that date. The rate we use will be no more than the HIGHEST official rate published by a government agency or the HIGHEST interbank rate we identify from customary banking sources on the conversion date or the PRIOR business day. This rate may differ from the rates that are in effect on the date of your charge".
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Old Feb 29, 16, 6:33 am
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Originally Posted by richarddd View Post
In London, I used my Chase Sapphire Preferred Visa and Amex SPG for 5 top ups to my Oyster card. I did them within about a minute. Chase translated to $7.17, Amex to $7.26. There were no separate currency conversion fees. Charge was on 2/17.

This seems contrary to recent posts preferring Amex to Visa.

The Visa rate (1.434) approximated the highest inter-bank spot in 2/17, according to https://www.poundsterlinglive.com/be...-on-2016-02-17. The Amex (1.452) rate was higher, although the pound was dropping at the time.
Originally Posted by luna6 View Post
Actually it makes perfect sense, because earlier posts mentioned that Visa/Mastercard uses exchange rates on day of usage and Amex the day it settles (?). So in instances with a rapidly dropping currency you'll see Amex lose out. Conversely, when exchange rate is stable or currency is rising then Amex will come out ahead.
Originally Posted by richarddd View Post
With falling exchange rates, the charge in dollars should be lower the later the date that is used to calculate exchange rates. The pound has been getting cheaper (likely due to talk of Brexit).

If Visa uses day of usage and Amex uses the same or a later day, Amex should be the same or lower, rather than being about 1.25% higher.
Originally Posted by bigbuy View Post
Regarding Amex, not necessarily true.
This from Amex t&c's
"Unless otherwise required by law, we will chose a rate that is acceptable to us for that date. The rate we use will be no more than the HIGHEST official rate published by a government agency or the HIGHEST interbank rate we identify from customary banking sources on the conversion date or the PRIOR business day. This rate may differ from the rates that are in effect on the date of your charge".
My point was that, contrary to the post to which I responded, if rates are falling (e.g., fewer dollars per pound), using a later date will give you a lower price, not a higher price. The OP got it exactly backwards.

Your post does not seem responsive to that issue. It could be consistent with my post that Amex gave a worse rate.

Earlier posts were to the effect that Amex generally gives a better exchange rate than Visa. Both Amex and Visa appear to use the highest rate on the relevant day, which suggests neither is generally better than the other, it depends on which date is used and how market rates are moving.

From the t&c you post, Amex seems to use posting date rather than date of use. Visa seems to be the same, given that the amount shown in "pending charges" is often different than the final amount. Amex does not seem to post "pending charges" for forex transactions, perhaps to avoid showing different pending and final amounts.
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Old Feb 29, 16, 11:13 am
  #204  
 
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Originally Posted by zyxlsy View Post
No, Arrival+ from Barclay is a MasterCard.

I stopped using Visa in countries where their currencies follow market rates. In countries with rate control, I find Visa usable.

My concern is A+ using a worse rate for large transactions, mentioned by some of the posts here. They also say it started in Jan 2016.

I haven't been able to independently verify this. My transactions in Singapore were not all huge enough and the results were inconsistent.

I still tend to believe A+ doesn't do this dirty thing. But who wants to gamble on a $1000 charge where the potential hidden fee can be over $10?
I've just done a large AUD transaction on my A+ so will let you know when it posts.

If they're adding 1% then the A+ will see the shredder as large foreign spend is the only reason I still keep it.
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Old Mar 1, 16, 7:37 am
  #205  
 
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Originally Posted by patrick.barnes View Post
I've just done a large AUD transaction on my A+ so will let you know when it posts.

If they're adding 1% then the A+ will see the shredder as large foreign spend is the only reason I still keep it.
Well this is some meat in the recent posts~

Keep me posted, and fingers crossed!

If true, I still will keep it, so that it is my backup card to try in Europe's unmanned stations...
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Old Mar 1, 16, 12:47 pm
  #206  
 
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Originally Posted by zyxlsy View Post
Well this is some meat in the recent posts~

Keep me posted, and fingers crossed!

If true, I still will keep it, so that it is my backup card to try in Europe's unmanned stations...
That's why I signed up for Revolut.

Zero issues anywhere C+P is required.

The A+ is still useful for that, but why pay $89/year for it? I was saving thousands a year in FX fees so... that was my only reason to keep it.
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Old Mar 2, 16, 7:34 am
  #207  
 
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Originally Posted by patrick.barnes View Post
That's why I signed up for Revolut.

Zero issues anywhere C+P is required.

The A+ is still useful for that, but why pay $89/year for it? I was saving thousands a year in FX fees so... that was my only reason to keep it.
Maybe for the 2% cashback??? I'm for that to be honest, and the C+P of course.

However, at a Osaka Shinkansen kiosk requiring passwords, A+ didn't work, but my Amex SPG worked when I keyed in a password that even I wasn't sure was correct or not... But it just worked, and the transaction did not appear as cash advance like I feared.
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Old Mar 2, 16, 8:45 am
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Originally Posted by zyxlsy View Post
Maybe for the 2% cashback??? I'm for that to be honest, and the C+P of course.

However, at a Osaka Shinkansen kiosk requiring passwords, A+ didn't work, but my Amex SPG worked when I keyed in a password that even I wasn't sure was correct or not... But it just worked, and the transaction did not appear as cash advance like I feared.
You can get a PIN for an SPG card? That's cool.

Or are you sure you set one? Maybe it'll take anything if the card is really chip and sig?

I know, years ago, the only way I could get a bike from Paris Velib was to use an Amex because they didn't have chip yet, so the system had to fall back to the magnetic strip (couldn't do it with Visa because they required a chip for Visa). Maybe this is a similar security fallback?
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Old Mar 2, 16, 12:22 pm
  #209  
 
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Okay, so to put the A+ fears aside:

Transaction for $3204 AUD on 02/29, posted same day (02/29):

USD $2281.57

Rate: 0.71210049937578

Xe.com rate for 02-28: 0.7126000000
Xe.com rate for 02-29: 0.7148934607

So MC beat the best mid market rate for both dates (taking into account possible timezone differences).

No 1% hidden markup noticed.
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Old Mar 2, 16, 3:00 pm
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Originally Posted by Michael Ad View Post
You can get a PIN for an SPG card? That's cool.
You can't...
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