Question
I have both the Citi MC AA World Card and a Starwood AMEX.
Which gives more favorable rates when charging foreign purchases?
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I have both the Citi MC AA World Card and a Starwood AMEX.
Which gives more favorable rates when charging foreign purchases?I thought they both charged a 3% foreign transaction fee. I decided to opt out of the miles for this and use a Capital One MC which has a 0% fee, and they cover the 1% fee charged by MC.
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I thought they both charged a 3% foreign transaction fee. I decided to opt out of the miles for this and use a Capital One MC which has a 0% fee, and they cover the 1% fee charged by MC.
I believe Amex is 2% and Citi is 3. The exchange rate on Amex tends to suck though so it's a wash.
I use a Merrill+ Visa for foreign purchases but will switch to a Capital One if they ever add fees.
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One other factor may make a difference.
If I recall correctly, the Citi AA Mastercard charges a 3% foreign transaction fee irrespective of whether the foreign transaction is billed in dollars or in another currency, while AMEX charges the 2% only in cases where the foreign charge must be converted to dollars by AMEX.
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Neither Citi AA MC or AMEX gives you good rates. Both charge a foreign exchange fee. I have a Merrill+ card for "no foreign transaction fees". However, I suspect that this benefit will go away. (MBNA, the card sponsor, recently removed this benefit from their quantum card.)
Capital One also has no foreign transaction fee. That is the only reason that they are in my wallet.
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I thought AMEX gave you Wall St journal listed exchange rate for your purchase.
As for Merrill Lynch's card. I wouldnt trust them as far as I could throw them. My guess is that they are skimming you on the rate to make up for the "no fee" business.
Ken in Phx
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When you refer to the AMEX fee and exchange rate, I figure these statements apply to the (new) Citi AMEX product. Is that correct? Thanks.
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When you refer to the AMEX fee and exchange rate, I figure these statements apply to the (new) Citi AMEX product. Is that correct? Thanks.
I don't know about the Citi AMEX; what I was referring to was the regular AMEX charge cards and the AMEX "credit" cards like Starwood, HHonors, Delta co-branded AMEX.
I thought AMEX gave you Wall St journal listed exchange rate for your purchase.
If you're talking about the Citi AMEX, could be. As to the other AMEX cards, they seem to use the www.oanda.com bankrate to which they add their 2% fee.
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As for Merrill Lynch's card. I wouldnt trust them as far as I could throw them. My guess is that they are skimming you on the rate to make up for the "no fee" business.
My Merrill+ is consistently better by 2 to 2.5% than my Amex SPG when it comes to exchange rates (comparing same day purchases in Canadian dollars and Euros so far). Only reason I still use this card since they killed the Ritz-Carlton program :(
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The exchange rate on Amex tends to suck though so it's a wash.
No doubt. Your actual exchange rate with Amex will be close to 7% since they use a rate higher than the forex rate.
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As for Merrill Lynch's card. I wouldnt trust them as far as I could throw them. My guess is that they are skimming you on the rate to make up for the "no fee" business.Wouldnt trust who, VISA/MC ? MBNA is the CC issuer and VISA/MC controls the FOREX rate. Merrill Lynch isnt involved at all.
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Removed my post... I have said enough.
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No doubt. Your actual exchange rate with Amex will be close to 7% since they use a rate higher than the forex rate.
That's not my experience!*
I've used AMEX since 1980, and the only time I got anything near a 7% exchange rate (comparing to the oanda interbank rate) was a hotel charge for three weeks in Ankara. I called them on it, and they corrected to 2% at once.
There have been a few other cases over the years, averaging about once a year, but none since 2003, where the rate used in figuring the charge was more than one-half percent above the oanda rate plus 2%, and those were from currencies in small African and Asian countries. In each case, a phone call was all it took to get the correct rate.
Considering that I travel quite a bit, to Europe (including eastern Europe outside the EU and Eurozone), Africa and Asia, and certainly run more than 100 foreign exchange charges per year (probably closer to 250 per annum the last five years), I think my experience would reflect it if AMEX were indeed charging "close to 7%".
*Edited to add: Just noticed you're in/from Malta, Kibison. If you have a card issued by other than AMEX US, your exchange rates may well be higher than mine.
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In the UK if you make a purchase other than GBP you actually get 2 exchanges. If you are buying something in euro's it first gets changed to dollars and then into pounds and add 2.75% on top of that!
Not very competitive!
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So I'm still trying to figure out:
Which is the best points bearing card that does not bear a Foreign Exchange Fee? It appears to be the Merrill+ but is there a Cap One or other that has a good rewards program?
My intentions are to use this card only for overseas travel, but I still intend on using my other cards (SPG Amex, Amex Plat, Diners) for other purchases, so I do not intend on putting more than 10k a year on this card. Therefore, I would like something probably fee free where I could get a minor redemption every couple or few years.
Any advice here?
Thanks in advance,
Jayzee9
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...It appears to be the Merrill+ but is there a Cap One or other that has a good rewards program?
... Therefore, I would like something probably fee free where I could get a minor redemption every couple or few years. Cap One points expire after 3 years and it's a fare-based redemption system, so keep that in mind. I just think of my 3% savings overseas as my "reward."
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So I'm still trying to figure out:
Which is the best points bearing card that does not bear a Foreign Exchange Fee? It appears to be the Merrill+ but is there a Cap One or other that has a good rewards program?
My intentions are to use this card only for overseas travel, but I still intend on using my other cards (SPG Amex, Amex Plat, Diners) for other purchases, so I do not intend on putting more than 10k a year on this card. Therefore, I would like something probably fee free where I could get a minor redemption every couple or few years.
Any advice here?
Thanks in advance,
Jayzee9
There is a Capital One Visa Signature which is probably the best Cap One rewards card. Merrill+ is a good card though. It is my preference.
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I suspect that a points card is not a good choice for foreign transactions. Sad, but probably true.
I only like miles/points when they don't cost anything extra.
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I suspect that a points card is not a good choice for foreign transactions. Sad, but probably true.
I only like miles/points when they don't cost anything extra.
Actually, both of these cards (CapOne and ML Plus) offer points and no foriegn transaction fee. Read the thread...
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I have both the Citi MC AA World Card and a Starwood AMEX.
Which gives more favorable rates when charging foreign purchases?
good reference..
http://www.flyertalk.com/forum/showthread.php?t=401958
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So I'm still trying to figure out:
Which is the best points bearing card that does not bear a Foreign Exchange Fee? It appears to be the Merrill+ but is there a Cap One or other that has a good rewards program?
My intentions are to use this card only for overseas travel, but I still intend on using my other cards (SPG Amex, Amex Plat, Diners) for other purchases, so I do not intend on putting more than 10k a year on this card. Therefore, I would like something probably fee free where I could get a minor redemption every couple or few years.
Any advice here?
Thanks in advance,
Jayzee9
Why don't you get the pentagon federal credit union's card? 1% fee but 1.75% cash back on everything (so you save around .75%)
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I have always used AMEX abroad and paid the 2% foreign exchange transaction fee. Now it appears as AMEX affiliates itself with major banks that they are showing flexibility with this rate. The AMEX card USAA now issues members through its bank only charges 1% foreign currency transaction fee for its AMEX card charges and rebates up to 1.25% of all purchases in its cash rewards program. So this summer I'll be using my new USAA/AMEX instead of my Plat when I charge in foreign currency.
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I have always used AMEX abroad and paid the 2% foreign exchange transaction fee. Now it appears as AMEX affiliates itself with major banks that they are showing flexibility with this rate. The AMEX card USAA now issues members through its bank only charges 1% foreign currency transaction fee for its AMEX card charges and rebates up to 1.25% of all purchases in its cash rewards program. So this summer I'll be using my new USAA/AMEX instead of my Plat when I charge in foreign currency. I just realized recently too that the new USAA/AMEX provides $1million in flight insurance while the AMEX Plat still only offers $500K unless you pay for additional insurance, so I suppose I'll also be using this card for air tickets.
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I'd rather pay extra 3% and have the points, personally. $10,000 in charges is only $300 extra, for example.
(My understanding is AMEX comes out to be about 3% total because their exchange rates are slightly higher.)
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As of June 30 MBNA (at least the U.S. LH Visa that is) now also charges a 3% foreign exchange fee. The 3% is assessed on the $-amount, oncie it is changed from the foreign currency to the U.S. $s.
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Thanks to the advice of everyone on this forum, I applied for and got a Merrill Lynch + Card. I waited to purchase a couple SQ PER-SIN tickets for the card to arrive, as the transaction was going to occur in $SIN. I used this as a test for the card to see if it produces results as expected.
On July 30th, I purchased two SQ Y tickets from PER - SIN totalling SGD 1524.
If you look at oanda.com, this comes out to $965.474. I just looked at my online statement, and I was charged $965.47. That is a bank rate my friends that I was charged, and I am very happy about it!
Thanks--I definitely plan on using this card often for my foreign activity. Too bad my SPG card can't even come close to this!
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That is fantastic. How long did it take for the card to arrive?
Do you know if all the Merrill cards have the same foreign currency transaction rates? I use my SPG as primary, so getting the Merilly !% cashback as a secondary may be the right fit.
https://www.card.ml.com/MLRewardsCenter/View-Cards/Compare-Cards/ML-View-Cards-Compare-All.htm
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That is fantastic. How long did it take for the card to arrive?
Do you know if all the Merrill cards have the same foreign currency transaction rates? I use my SPG as primary, so getting the Merilly !% cashback as a secondary may be the right fit.
https://www.card.ml.com/MLRewardsCenter/View-Cards/Compare-Cards/ML-View-Cards-Compare-All.htm
They approve you instantly on the web and assign a credit limit upon approval. From that point, it took about a week or so for the card to arrive.
The cashback card looks okay (and has no foreign txn fee) but is only for people who have other accounts with Merrill, as that's where they put the cash. The other Merrill cards have fees associated with them. Merrill+ is not bad, as you can convert to BA miles, which are not entirely useless. They can also be used in other capacities.
I'm going to continue to use SPG as my primary, but I will use Merrill+ for any and all international txns.
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Bear in mind that one can convert Merrill+ points to BA miles only in blocks of 5,000. If you plan to use the card only for foreign transactions, and if you have only a small froeign charge volume, it's probably worth studying the other redemption options beforehand.
At the other extreme there are some worthwhile benefits if you charge $20,000 or $50,000 in a calendar year.
dennis
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how much are you planning to charge and how much could the finance charge be?
I use my Chairman Card overseas and it is the only card I carry except for my CitiBusiness Premier Pass...
Chairman is for all personal charges and my wife goes to India for 3 months at a time and she charges all the jewelry and clothing to it...the finance charge does not worry me since I earn all the points including the flight points while travelling in India...
So, I probably earn 10-12000 pts just for travelling in India and maybe pay 150-200 in finance charges...no big deal...
No reason to justify having a Capitol One card in my wallet...where the point earning is stupid, the customer service is terrible and point redemption is like a snowball's chance in hell....
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So, I probably earn 10-12000 pts just for travelling in India and maybe pay 150-200 in finance charges...no big deal...
As a Citibank shareholder (and as someone interested in having Citi continue their card reward programs) I thank you for paying the 3% charge :p
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So I'm still trying to figure out:
Which is the best points bearing card that does not bear a Foreign Exchange Fee? It appears to be the Merrill+ but is there a Cap One or other that has a good rewards program?
My intentions are to use this card only for overseas travel, but I still intend on using my other cards (SPG Amex, Amex Plat, Diners) for other purchases, so I do not intend on putting more than 10k a year on this card. Therefore, I would like something probably fee free where I could get a minor redemption every couple or few years.
Any advice here?
Thanks in advance,
Jayzee9
ML Plus is fee-free (recommended). CapitalOne has a Visa Signature, but it has a fee.