Mastercard vs Visa FX Rate

danielson81

Hi,

I have a Halifax Clarity and Nationwide Select credit card with 0% fees abroad etc.

According to: http://www.moneysavingexpert.com/travel/travel-credit-cards#halifax

The rate you'll get is set by Mastercard – it tends to be higher than Visa's and Amex's rate, making this the joint top card for spending.

However I purchased something abroad for €27 on the same day last week in Malta.

Nationwide Select Visa:

Currencies fluctuate every day. The rate shown applies to transactions processed by Visa Europe on 21 August 2017 with a currency conversion fee of 0.00%

27.00 Euro = 24.70 Pound Sterling

* * * * *

1 Euro = 0.9149633100 Pound Sterling

- Or -

1 Pound Sterling = 1.0929400000 Euro

Halifax Mastercard

Transaction Details
* Required
Transaction Date *

21-Aug-2017
EURO- EUR
Transaction Amount *
27.00
Your Card Details
Bank Fee *

0.00
GREAT BRITISH POUND- GBP
Your Card Currency Amount
24.73
1 EUR = 0.915996 GBP

Ok, ok it's only 3p, but with multiple transactions etc, this might add up in the long run?

Although they are both excellent spending cards abroad still!

[Deleted User]

If you were to always use whichever card that was going to give you a worse rate, then yes it would add up. Although not to very much.

However, you'd be exceptionally unlucky, especially if you used Mastercard as your main card, as the rate tends to be better.

eskbanker

Now you know why MSE says MasterCard's rate "tends to be higher than Visa's" rather than a more definitive "is always higher....".

System

The big benefit of the Clarity is the charge free ATM withdrawals, if you need them.

stevenhp1987

Mastercard rate is better more often that not. But, it is not always better.

On average, if you use the Mastercard over the Visa, you will come out tops. If you monitor the exchange rates carefully for each card schema you will come out a few pence better off.

Given the time involved for a few pence, the Mastercard is better overall.

eDicky

There are variables that make a rate comparison for actual card usage impractical. For example two purchases made with a MasterCard and a Visa on the same day may well be settled and the final rate set on separate dates, when exchange rates have meanwhile moved one way or the other.

In practical use, either card (if without fees) are so much better than losing 2-3% on fees or exchanging cash, and any difference between them has no real significance.