Where can I find the day to day credit card exchange rate?

welnik

I today purchased something in Euros and rang Egg to find out what todays exchange rate was. They advised that they use the VISA rate which can be found on https://www.visa.com. I have had a look and its not obvious as to where this info is on the site. Does anyone know whether this is published everyday and where. The rate I got was 1.45 euros to the £. If I had exchanged money at the post office today they were offering 1.38 so its quite a difference.

Rafter

Useful quote from chewjoint about this below.

xe.com does allow you to look at rates over time and on particular dates and is closer to the 1.45 rate you quote above.

The rate you got at the post office is their sell rate which includes commission payable to the post office to cover their costs and also the exchange rate risk they have from holding bank notes in different currencies.

Similarly Visa charge your bank commisssion too but it is the banks decision whether to pass this on or not - Nationwide don't for example.

Even if you are paying 2.5% commission on your credit card for foreign purchases, you still hsave around 2% versus the post office route because the exchange rate is so much better.

Best thing is to get a nationwide card for overseas purchases - that way you save even more.

R.

chewyjoint wrote:

I emailed Visa some time ago to ask if they published their exchange rates. This is the reply they sent;

"Thank you for your message. To determine the exchange rate for all Visa transactions, Visa uses a wholesale market rate or a government mandated rate in effect one day before our system's processing date. Added to this 'base' exchange rate, Visa assesses the Member financial institution a 1% conversion fee. The bank may or may not pass this cost along to the cardholder. This would be indicated in the cardholder's credit card agreement or disclosure statement.

In addition, a Member bank may request that our system calculate an additional percentage to cover any costs they incur as a result of converting a foreign transaction. This fully loaded figure is the exchange rate sent to the Member bank that is ultimately charged to the cardholder.

For general industry currency rates, they can go to https://www.xe.com. For specific information regarding how the exchange rate is applied to accounts, cardholders can contact the financial institution that issued their Visa card."

So as far as I can see if you use one of the cards with no loading suh as Liverpool Victoria or Nationwide then you should get the rate published at https://www.xe.com

welnik

Thanks for that. ive looked into the Nationwide account but you have to use it as your main account and have your wages paid in. I think the amount I save would be outweighed by the A&L's goog 5% interest they pay on credit balances.

It does make me laugh when foreign currency sellers states they will buy back commission free when all they are really doing are giving you less sterling for the currency when you cash it in. It would only really be commission free if they gave you exactly the same rate you purchase at.

regards
Welnik

Galstonian

Nationwide credit card don't charge commission on foreign purchases

Rafter

Welnik,

Assumed you were talking about credit card since you mentioned Egg.

Using credit card for ATM/ Cash advances overseas is a different issue. You will still be charged the cash advance fee and will be charged interest from the date of withdrawl.

I always use a debit card for cash withdrawls overseas and a credit card for purchases. Havn't used a foreign exchange desk or travellers cheque for 5 years and never had a problem finding an ATM machine within 10 metres of the arrival gate at international airports.

grumbler

welnik wrote:

... ive looked into the Nationwide account but you have to use it as your main account and have your wages paid in...

You can just open Nationwide flex account without transferring you account and salary!

P.S. Nationwide rate is very close to interbank rate that I usually check with Oanda.com