For those in Perth always looking for a better, faster, cheaper way

Wednesday, March 17, 2010

Everydaymoney credit card: Reuters Interbank Wholesale exchange rate or Credit Card Exchange rate?

I was buying tickets on the Jetstar Asia website when I was asked which foreign exchange rate would I like to take? They offered the Reuters Interbank Wholesale exchange rate or let my credit card company determine the fee? Because I was buying two separate but identical fee flights, I used this to compare the rates.

Reuters Interbank Wholesale
SG$148 = AUD$120.13
SG x 0.8117 = AUD

The Jetstar itinerary and tax invoice said  "This transaction is based on a Reuters Interbank Wholesale
exchange rate and includes all fees and charges. Cardholder choice is final."

The second transaction, I opted for the EverydayMoney option to see what I would get. 

Everyday Money Credit card
SG$148 = AUD$116.68
SG x 0.788 = AUD

Everyday Money offered a better exchange rate. However, there is also a 2% overseas transaction charge which took Everyday Money up to AUD$119.01. It seems that going with the Everyday Money credit card exchange rate was better than Reuters by 1% even after factoring in the overseas transacation charge.

EDIT: Everyday Money credit card has since increased their Overseas Transaction Charge to 3% so be warned! 

As you may know, each credit card's exchange rate and overseas transaction rates will be different so be careful with all such transactions. But if you have an everyday money credit card, let everyday money handle overseas transactions. Also see our comparison of Overseas Transaction charges between AMEX platinum, everydaymoney and BP Citibank cards.

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