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Old 01-18-2016, 09:14 AM   #61
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OK audreyh1, I now buy that you have it right based on reading the bankrate.com quote you found to support your belief.

You quoted bankrate.com and I would appreciate if you could post the link to that page you quoted from. It would be handy for me to have when on other travel sites where someone asks about the Visa 1%.

As I wrote, I am happy to have got it wrong. Having the 1% eaten makes 'no transaction fee' all that much better for US card holders. Now they just have to get the chip and PIN part right.








Quote:

Credit card foreign transaction fees
Capital One
Issuer fee: none.
MasterCard/Visa fee: 1%; absorbed by Capital One
Total: 0%
unless it's accurate.
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Old 01-18-2016, 09:36 AM   #62
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Quote:
Originally Posted by OldPro View Post
OK audreyh1, I now buy that you have it right based on reading the bankrate.com quote you found to support your belief.

You quoted bankrate.com and I would appreciate if you could post the link to that page you quoted from. It would be handy for me to have when on other travel sites where someone asks about the Visa 1%.

As I wrote, I am happy to have got it wrong. Having the 1% eaten makes 'no transaction fee' all that much better for US card holders. Now they just have to get the chip and PIN part right.

Quote:

Credit card foreign transaction fees
Capital One
Issuer fee: none.
MasterCard/Visa fee: 1%; absorbed by Capital One
Total: 0%
unless it's accurate.
That bankrate.com quote with link was originally in my reply to you in post #32
Credit Card Foreign Transaction Fee Chart | Bankrate.com

Capital One was the most vocal US bank at first to advertise their no foreign transaction fees credit cards, and it must have been a big selling point, because most major US credit card issuers eventually came out with one or more cards that provided the same feature.
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Old 01-18-2016, 11:38 AM   #63
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Originally Posted by OldPro View Post
Does it say something about our society when we all look for (including myself) the 'sound bite' to tell us the story? If it doesn't fit in a 'tweet' or a 15 second TV news segment, it's too long.
Back when email came to the market in the early 90s, I found that many of my direct reports would only deal with the first issue in an email. So I don't think it is a new phenomenon. And I also read all your posts because it as an old habit.
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Old 01-18-2016, 11:51 AM   #64
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Thanks Meadbh. We found that TD would charge a $5 Plus exchange fee and a 2.5% Vig on foreign debit transactions.

So we found that the Chase Visa would give us cash advances for 1% of the amount withdrawn (minimum $5) and was accepted everywhere in Europe. So we would make a w/d, say 500 euros, then pay off the balance to avoid interest charges. It worked well in Turkey and Sicily.
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Old 01-19-2016, 08:16 AM   #65
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Originally Posted by audreyh1 View Post
That bankrate.com quote with link was originally in my reply to you in post #32
Credit Card Foreign Transaction Fee Chart | Bankrate.com

Capital One was the most vocal US bank at first to advertise their no foreign transaction fees credit cards, and it must have been a big selling point, because most major US credit card issuers eventually came out with one or more cards that provided the same feature.
That's the first site I've seen that actually breaks out the issuer/Visa fee separately audreyh1. Very useful site to direct people to who are looking for what card to use.
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Old 01-19-2016, 08:18 AM   #66
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Originally Posted by kcowan View Post
Back when email came to the market in the early 90s, I found that many of my direct reports would only deal with the first issue in an email. So I don't think it is a new phenomenon. And I also read all your posts because it as an old habit.
Back when e-mail came to the market, I was already retired kcowan.
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Old 06-30-2016, 03:22 PM   #67
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Another tidbit on currency conversion. This time on credit/debit networks. A long mind-numbing discussion** on Flyertalk has some folks reporting that they generally see a better conversion rate from MasterCard than from VISA, often to the tune of 0.5% better. The conjecture is that MasterCard uses some average of the rates on a given day (i.e. the forex mid rate), while VISA probably picks the peak - playing the spread on any given day. Could be. I decided to compare and also look at the spreads for a given day.

I looked at a recent transaction where the VISA EUR to USD rate for the date posted was 1.108689. The conversion for my transaction was almost exact (well within the rounding error of 1c).

I checked the Mastercard EUR to USD conversion for that same posting date which was 1.110700. Almost identical. The MasterCard rate was just a hair worse by 0.18%. Nothing worth bothering about. So I clearly didn't see a MasterCard advantage in this case.

But I got curious about the spread between their EUR to USD rate and the USD to EUR rate for both networks. I compared them by comparing their published EUR to USD rate and inverting the published USD to EUR rate.

6-28-16 EUR to USD USD to EUR spread
VISA 1.108689 0.911652 1.07%
MasterCard 1.110700 0.900090 -0.03%

VISA Exchange Rate Calculator - https://usa.visa.com/support/consume...lculator.html/
Mastercard Currency Conversion Tool - https://www.mastercard.com/global/currencyconversion/

So in this case VISA does have a significant (>1%) spread between converting one direction and the other, but Mastercard essentially has none. Yet for my conversion of Euros back to USD, VISA gave me a slightly better conversion rate.

From my little one day experiment, I would think that if the currency is converted to USD, you have some advantage, but if you are converting USD and billed in some other currency, you are probably at a disadvantage with VISA. But maybe not with Mastercard.

Note that for both networks, the rate used is the rate in effect the day the transaction posted (not the transaction date). VISA rates are based on the foreign exchange range from the previous day. MasterCard - I'm not sure what theirs is based on.

If you have a no FTF MasterCard, you might want to see if you are getting better conversions with VISA. All my cards are VISA and I'm loath to take on yet another one.

P.S. If you thought this was mind-numbing, don't read the FlyerTalk thread!!!
**http://www.flyertalk.com/forum/credi...all-cards.html
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Old 06-30-2016, 03:57 PM   #68
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Oh Good - here is someone who demonstrates essentially no difference and no consistent advantage:
Foreign Exchange Rates - VISA vs. MasterCard vs. Amex - Hungry for Points
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Old 06-30-2016, 04:17 PM   #69
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As long as there's no foreign transaction fee, these conversion factor differences are down in the noise level for me.

For example, some Visa purchases I made in France in Euros earlier this month converted to US$ at a 1.129411764 factor.
The rate quoted for that day on XE.com was 1.1252539629.
That gave the Visa folks just over 2/5 of a cent per Euro, and they're welcome to it.

However, it's definitely important to be aware of this issue.
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Old 06-30-2016, 05:28 PM   #70
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I think several folks on FlyerTalk had convinced themselves that MC had an edge by 1% over VISA when it came to conversion rates. Partly because of the belief that MC uses something closer to the mid-market rate as seen on XE.com for a given day. Whereas VISA seems to choose a max value from the day before (worst).

But I think some can be attributed to maybe a 1 day delay in comparisons - something that averages out in the long run. Also it's easy to get off due to rounding errors on small purchases.

Anyway - someone who had 150 transactions in several different parts of the world usually several different cards in 2015 found that there was no absolutely consistent difference and the cards were usually within 0.1% of each other. In other words - yes, noise.
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