![]() ![]() The issuing banks may then adjust the exchange rates further in your credit card bill. Visa, MasterCard, Amex, and UnionPay calculate blended exchange rates from a range of sources such as wholesale currency markets or government-mandated rates, then make these rates available to the issuing banks. How do card associations determine foreign exchange rates?īefore we attempt to minimise the "costs" from the foreign exchange rate, let us first understand how card associations determine these rates on your credit card bill. Please include your card and bank specific benefits and fees in your overall assessment. Note: This article only focuses on foreign exchange rates. There are two exceptions UnionPay and JCB generally give the best exchange rates for CNY/SGD and JPY/SGD respectively (no surprise there!). ![]() Our results show that all else being equal, you can expect to save ~0.1-0.7% on average with MasterCard as it generally provides better exchange rates than Visa and UnionPay across most currencies, at least 70% of the time. It is important to understand this because the exchange rates provided by each card association can differ by 1-2%, meaning you could pay S$10-20 extra for a S$1,000 transaction, on top of your credit card fees. Is this an additional fee? How can we avoid, or at least minimise this "fee"? However, what about the foreign exchange rates? In the disclosure above, the foreign exchange rate is said to be “determined by Visa / MasterCard / Amex”. Here’s a typical breakdown, using DBS as an example: FeeĬurrency conversion charge imposed by card associationsģ.0%, plus the foreign exchange rate determined by Visa / MasterCardģ.0%, plus the foreign exchange rate determined by Amex For example, the total fees for DBS issued credit cards are 3.0% for Visa/MasterCard and American Express (Amex) cards. These fees are usually disclosed by the issuing bank in the cardholder agreement. the administrative fee imposed by the bank.the currency conversion charge imposed by card associations (Visa, MasterCard, or American Express).Depending on the card, you can expect to pay 1.0-3.5% in fees when you use your credit card in another country. The calculator is informative, The applied exchange rate and the final cost of transaction currency conversion are based on the payment organization’s rate on the transaction initiation date.įor transactions in European Economic Area currencies within the European Economic Area, the calculator allows you to check the total amount of currency conversion fees as a percentage of the margin against the most recent reference euro exchange rate announced by the European Central Bank (ECB).įor transactions made in a currency other than PLN, the bank charges a currency conversion fee in accordance with the Table of Fees and Commissions (currently 6.8% of the transaction value).Most travellers are aware of the fees associated with using their credit cards overseas. ![]() Calculation results are based on the latest exchange rates published by Mastercard and Visa payment organisations, and by the European Central Bank. This calculator enables calculation of currency conversion cost for a currency transaction executed with the use of the Credit Card as per the rules described in Credit Card Regulations. ![]()
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