MBNA Everyday credit card foreign exchange rate

rliu

Hi, I have the MBNA Everyday credit card from a few years ago, which has no foreign exchange commissions or fees. I just wondered if anyone knows if the exchange rate, for GBP to euro in particular, is calculated day by day and updated overnight (like at a physical bureau de change on the high street), or if they updated it more regularly during the day? Today for example I believe GBP is up about 0.8% on the currency markets against euro, starting the day at 1 to 1.082 and ending at 1 to 1.091, so will they be updating their rates overnight and use one rate tomorrow, or will they constantly change this throughout the day tomorrow?

Also I'm aware that even on a fee free card that the rate offered is typically a little bit, around 0.1-0.2% lower, than what the currency markets offer.

Edi81

The rate is set by Mastercard or Visa depending on which one the card is issued through.

Highland76

I have the same card (now Visa issued rather than Amex). The forex rates are determined by Visa, not MBNA. Whatever the Visa forex rate calculator gives you for a particular day, is the same rate which mbna will use. Just be aware that the rate used will be on the day mbna process the transaction, which is usually a few days after you made the transaction.

https://www.visa.co.uk/support/consumer/travel-support/exchange-rate-calculator.html.

SnowTiger

rliu wrote: »

Hi, I have the MBNA Everyday credit card from a few years ago, which has no foreign exchange commissions or fees. I just wondered if anyone knows if the exchange rate, for GBP to euro in particular, is calculated day by day and updated overnight (like at a physical bureau de change on the high street), or if they updated it more regularly during the day?

I have a different MBNA card. The back of my statement contains this:

Payment scheme exchange rate: For rates please call Customer Services on the number above. Indicative rates can also be found at:

Mastercard - https://www.mastercard.com/global/currencyconversion/index.html
VISA - https://www.visaeurope.com/en/cardholders/exchange_rates.aspx

rliu

Thanks for responses, seems the Visa website is pretty much accurate in regards to the FX rate charged. Just secured myself tickets for Euro 2020 next summer!
Last time I used the card was in Portugal in June, I spent around €600 and a month later there was £0.15 or something interest added to my statement. Is there a daily interest then on this card for foreign currency transactions? Remember reading 7.8% APR or something.

Highland76

The Everyday Visa card has an apr of 7.4% which is applied to cash withdrawals, no cash withdrawal fee though. Therefore you won’t get charged a huge amount in interest providing you pay them off fairly quickly.

PRAISETHESUN

The exchange rate that is used will typically be that for the day on which it the payment is processed, rather than the day on which you made a payment. My understanding is that they will process at the end/start of the day, you shouldn't get variability in the rate used over the course of the day.