MasterCard vs. Visa foreign usage

buffman

I have just ditched my Metro Bank MasterCard credit and debit cards. In their place I am using my Halifax Clarity MasterCard credit card, Nationwide Select Visa credit card and N & P Visa debit card. All these cards do not charge for foreign usage. Having carried out a number of experiments, it appears that the forex rate on a MasterCard is consistently better (by about 1/2%) than Visa. Visa appears to have a 'daily rate' that has a built in cost whereas MasterCard gives the 'spot' rate. As a consequence for cash withdrawals, I am about 1/2% worse off with my 0% charge N & P than I was with MetroBank before they introduced fees. Has anyone else observed this?

redux

I'd never realised that before, but random £/€ tests on 3 or 4 days say so

http://www.visaeurope.com/en/cardholders/exchange_rates.aspx

https://www.mastercard.com/global/currencyconversion/

adindas

I have been following this issues for sometimes. Back a few years ago a few people confirmed that Visa is slightly better than Master that is also my observation using it abroad.

I think will depend on the time they upgrade the currency exchange rate. Unlike interbank exchange rates which change a few times in a day following the currency flotation. The Visa and MasterCard update their rate only once or twice within the day most of time during lunch time.

You can not not draw an accurate conclusion just based on few withdrawals that you have made. If you want an accurate conclusion you will need to withdraws cash in foreign currency "several times within a day at different times and spread over the year" for instance. If you get consistence result that M is better than V and vice versa then it probably is

Also you could actually observe it from Visa and MasterCard websites on daily basis.

Anyway unless the sum is significant then there is no real benefit observing thethe difference as it is very tiny. People who need a large sum of foreign currency will be better off using currency broker rather than rely on V or M exchange rate.

buffman wrote: »

I have just ditched my Metro Bank MasterCard credit and debit cards. In their place I am using my Halifax Clarity MasterCard credit card, Nationwide Select Visa credit card and N & P Visa debit card. All these cards do not charge for foreign usage. Having carried out a number of experiments, it appears that the forex rate on a MasterCard is consistently better (by about 1/2%) than Visa. Visa appears to have a 'daily rate' that has a built in cost whereas MasterCard gives the 'spot' rate. As a consequence for cash withdrawals, I am about 1/2% worse off with my 0% charge N & P than I was with MetroBank before they introduced fees. Has anyone else observed this?

reclusive46

From personal experience (With the majority of my spend in US dollars), I find my Forex free MasterCard and American Express (New Duo cards) are about equal and the Visa exchange rate is about 1 cent worse per pound.

My experience with the MasterCard vs Visa comparison is very limited though, I've only ever had to use the MC twice in a foreign currency (Both for parking meters in Washington DC that don't accept Amex) but this is based on a comparison from when I've used all three networks in one day (MasterCard and Amex for purchases and Visa for withdrawal).

gt94sss2

In my personal experience, I find Mastercard tend to give a slightly better exchange rate that Visa Europe. However, which is better could well depend on the country concerned..

Regards
Sunil

System

I have found the same thing with USD, EUR and SEK.
I can't comment on other currencies.

gt94sss2 wrote: »

In my personal experience, I find Mastercard tend to give a slightly better exchange rate that Visa Europe. However, which is better could well depend on the country concerned..

Regards
Sunil

zagfles

Last time I looked into it MasterCard gave better rates. You can't really tell by comparing the VISA and Mastercard rates on the same day since they are set at different times of day so sometimes one is better, sometimes the other.

The way I compared them was comparing the rate Mastercard give for card in GBP, purchase in EUR to the rate the other way round, ie card in EUR, purchase in GBP. Same for VISA. The Mastercard markup was definitely less. See https://forums.moneysavingexpert.com/discussion/4189433