Results 1 to 19 of 19

Thread: Additional charge by banks over Visa's official exchange rate

  1. #1
    Member
    Join Date
    Aug 2008
    Location
    North
    Posts
    463

    Default Additional charge by banks over Visa's official exchange rate

    Recently bought some items on a UK website using Citibank credit card and realised the exchange rate charged was much higher than the rate I roughly checked at the time of purchase. So I'm starting this thread to put together information on how much more banks charges on card holders' online purchases to help fellow forumers make better decisions.

    If you have made any purchases online using Visa, please check the amount in your bank statement against Visa's official exchange rate here (bank fee set to 0%) and contribute to the list below:

    Bank FX charge Currency of purchase Currency of statement
    Citibank_2.01%_____GBP_________________SGD

    (Anyone knows how to set the spacing, pls feel free to do the necessary modifications.)

  2. #2
    Senior Member
    Join Date
    Mar 2002
    Location
    Hong Kong
    Posts
    3,688

    Default Re: Additional charge by banks over Visa's official exchange rate

    Usually credit cards gives worse rates than overseas bank transfers, but then for overseas bank transfers there is are bank fees.......

    CC gives the ease of use and points

    HS

  3. #3
    Member
    Join Date
    Dec 2005
    Location
    BEHIND YOU!!!!!!
    Posts
    678

    Default Re: Additional charge by banks over Visa's official exchange rate

    this is bopien as we normally use credit card to pay through paypal

  4. #4
    Member
    Join Date
    Dec 2004
    Location
    Planet Earth
    Posts
    656

    Default Re: Additional charge by banks over Visa's official exchange rate

    Quote Originally Posted by vaxvms View Post
    this is bopien as we normally use credit card to pay through paypal
    You can now transfer money to your paypal account from a DBS/POSB account via internet banking to pay for purchases instead of using a credit card. But don't know whether the exchange rate is any better or not with this method.

    http://www.dbs.com/newsroom/2010/press100812.aspx

    To activate this new service, DBS/POSB customers can simply log into their iBanking accounts and add PayPal as a new bill payee. Funds can then be easily transferred from their DBS/POSB bank accounts to their PayPal accounts via bill payment from the same secure iBanking environment.

  5. #5
    Member
    Join Date
    Oct 2007
    Location
    Hillview
    Posts
    67

    Default Re: Additional charge by banks over Visa's official exchange rate

    my experience is that my Citibank visa bills usually have better exchange rate than the (cash) counter rate. so much so that I use credit card as much as possible rather than changing into local currencies.
    anyway, i will check my bill

  6. #6
    Member
    Join Date
    Oct 2007
    Location
    Hillview
    Posts
    67

    Default Re: Additional charge by banks over Visa's official exchange rate

    Bank FX charge Currency of purchase Currency of statement
    Citibank 2.01% GBP SGD
    Citibank 1.926% UAE Dirham SGD
    Citibank 2.249% India INR SGD

    just check my recent bill, yeah, the visa webby quote better rate than my credit card bill

  7. #7
    Member
    Join Date
    Aug 2008
    Location
    North
    Posts
    463

    Default Re: Additional charge by banks over Visa's official exchange rate

    Quote Originally Posted by hongsien View Post
    Usually credit cards gives worse rates than overseas bank transfers, but then for overseas bank transfers there is are bank fees.......

    CC gives the ease of use and points

    HS
    yeah, CC is convenient...just that consumers should know what they are paying for and make informed choices. The hidden charges are

    Quote Originally Posted by vaxvms View Post
    this is bopien as we normally use credit card to pay through paypal
    although bopien, but still can choose if we know which bank charges the least.

    Quote Originally Posted by kietgnoel View Post
    You can now transfer money to your paypal account from a DBS/POSB account via internet banking to pay for purchases instead of using a credit card. But don't know whether the exchange rate is any better or not with this method.

    http://www.dbs.com/newsroom/2010/press100812.aspx
    Thanks for the info. Anyone tried it before? As long as the transaction date and billed rate is available, we can make the comparison.

    Quote Originally Posted by sampan View Post
    Bank FX charge Currency of purchase Currency of statement
    Citibank 2.01% GBP SGD
    Citibank 1.926% UAE Dirham SGD
    Citibank 2.249% India INR SGD

    just check my recent bill, yeah, the visa webby quote better rate than my credit card bill
    Thanks, sampan. Now we know the charge is not constant across different currencies (at least not in Citibank).

  8. #8
    Senior Member
    Join Date
    Mar 2002
    Location
    Hong Kong
    Posts
    3,688

    Default Re: Additional charge by banks over Visa's official exchange rate

    Quote Originally Posted by sampan View Post
    my experience is that my Citibank visa bills usually have better exchange rate than the (cash) counter rate. so much so that I use credit card as much as possible rather than changing into local currencies.
    anyway, i will check my bill
    Cash counter rate, which bank do you compare to? Citibank counter cash rates on that same day compared to your Citibank CC rate? Cause I noticed different banks have different exchange counter rates, Mustafa for example has very low exchange rates but they don't have CC, only cash exchange.......

  9. #9
    Member
    Join Date
    Aug 2008
    Location
    North
    Posts
    463

    Default Re: Additional charge by banks over Visa's official exchange rate

    Quote Originally Posted by sampan View Post
    my experience is that my Citibank visa bills usually have better exchange rate than the (cash) counter rate. so much so that I use credit card as much as possible rather than changing into local currencies.
    anyway, i will check my bill
    Quote Originally Posted by hongsien View Post
    Cash counter rate, which bank do you compare to? Citibank counter cash rates on that same day compared to your Citibank CC rate? Cause I noticed different banks have different exchange counter rates, Mustafa for example has very low exchange rates but they don't have CC, only cash exchange.......
    Since no physical cash is involved in online purchases, I think the TT rate is a better comparison.

  10. #10

    Default Re: Additional charge by banks over Visa's official exchange rate

    This is practised by all banks. The rates are never the same as VISA official rates. Just as forex rates are different as well. If you noticed, bank forex rates are usually higher than those in the change alley. Even within the change alley you can see different rates just two stores apart... Heck, even if you TT, you still pay a different rate from forex rate...

    So what is new?!?!?

  11. #11
    Member
    Join Date
    Aug 2008
    Location
    North
    Posts
    463

    Default Re: Additional charge by banks over Visa's official exchange rate

    Quote Originally Posted by Alpc View Post
    This is practised by all banks. The rates are never the same as VISA official rates. Just as forex rates are different as well. If you noticed, bank forex rates are usually higher than those in the change alley. Even within the change alley you can see different rates just two stores apart... Heck, even if you TT, you still pay a different rate from forex rate...

    So what is new?!?!?
    I think you don't get what I mean. Visa's official rates are already above the forex rate. The banks are taking another bite in the pie in addition to charging the merchants for the transaction. I'm not saying that the rates banks charge must be the same as Visa's official rates but by knowing how much each bank charge, consumers can then make better informed choices.

    Money changers in Change Alley/The Arcade (or anywhere else for that matter) deals in physical cash. Their rates are certainly always poorer than the rates for Telegraphic Transfers. Again, TT rate is poorer than forex rate due to a profit margin earned by the banks. Nothing new but not what I'm driving at. Cheers.

  12. #12

    Default

    There is a hidden charge of 1 -1.5% for every CC transaction by the different banks. Anyone knows is it better to sign in local currency or SIN dollars when we use CC oversea ?
    Last edited by airfins; 13th July 2014 at 01:55 AM.
    Canon 30D, G11, 50 f1.8II, 10-22 f3.5-4.5, 24-70 f2.8L, 70-200 f2.8L IS, EX580II

  13. #13

    Default

    Visa charge an admin fee of 2.5% on foreign currency transactions. They only deal in US and Aust$, any other currency will first be converted to the 2 above initially then to Sg$.
    Amex charge 3.25%.

  14. #14

    Default

    Quote Originally Posted by airfins View Post
    There is a hidden charge of 1 -1.5% for every CC transaction by the different banks. Anyone knows is it better to sign in local currency or SIN dollars when we use CC oversea ?
    There is a levy of 0.8%.

  15. #15

    Default Re: Additional charge by banks over Visa's official exchange rate

    Actually, don't most of the banks list their fees quite clearly on their sites now? I think what TS refers to is referred to by the banks as an 'administrative fee'.

    Maybank:

    Card Transactions in Foreign Currencies and Transactions Processed Overseas

    a) Card Transactions in foreign currencies other than US Dollars will be converted into US Dollars before being converted into Singapore Dollars. Card Transactions in US Dollars shall be converted to Singapore Dollars on the date of conversion. All conversions are subject to such exchange rate at such time as may be determined by the respective card association(s), namely Visa International Service Association and/or MasterCard International Incorporated at its absolute discretion. The conversion rate applied is based on the Posting Date of the Card Transaction to the Card Account which may be different to the rate in effect on the date of the Card Transaction.

    b) Pursuant to clause (a), the Bank shall charge the Cardmember the converted amount and the administrative fee of 1.5% (excluding Visa Diamante, Infinite and World Mastercard) of the said amount (or such fee as the Bank may determine from time to time). For Visa Diamante, Visa Infinite, and World Mastercard, the administrative fee shall be 1.75% of the said amount (or such fee as the Bank may determine from time to time).

    In addition, all Card Transactions in foreign currency are subject to charges by the respective card association as follows:

    For Card Transactions processed by MasterCard International:
    i) Card Transactions in foreign currencies incurred outside of Singapore will be subject to a 1% charge on the converted Singapore dollar amount;
    ii) Card Transactions in foreign currencies incurred in Singapore will be subject to a 0.2% charge on the converted Singapore dollar amount

    For Card Transactions in foreign currencies processed by Visa, a 1% charge will be levied.

    c) If the Cardmember has chosen to convert the overseas Card Transaction (including online Card Transactions) into Singapore dollars at the point of payment via dynamic currency conversion (a service offered at certain overseas ATMs and merchants), or the transaction is in Singapore dollar but processed by an overseas merchant (including online Card Transactions), the Cardmember acknowledges that the process of conversion and exchange rates applied will be determined by the relevant ATM operator, merchant or dynamic currency conversion service provider, as the case may be.

    All card transactions in Singapore dollars but processed overseas will be subject to an administrative fee of 0.8%.

    The Bank may charge, credit and debit, as may be appropriate, all sums payable to the Bank under this Agreement to the Card Account.

    http://info.maybank2u.com.sg/persona...editcards.aspx
    POSB:

    Fees for Foreign Currency Transactions

    Card transactions in US dollars shall be converted to Singapore dollars on the date of conversion. Transactions in foreign currency other than US Dollars will be converted into US dollars before being converted into Singapore dollars. All conversions shall be based on the prevailing wholesale interbank rates or the government-mandated rate, as shall be determined by the respective card associations, namely VISA International, MasterCard International & American Express International, Inc. The rate used for the conversion may be different from the rate in effect on the date of the transaction due to market fluctuation.

    All card transactions in foreign currency are subject to a charge imposed by the respective card associations, either as a reimbursement charge representing the charge imposed on us or as a direct charge to you. For foreign charges converted by Visa/MasterCard, Visa/MasterCard applies a conversion factor of 1% to the converted amount. For foreign charges converted by American Express, American Express applies a conversion factor of 1% to the converted amount.

    An administrative fee for services provided or actions taken by us in relation to such foreign currency transactions shall be payable by you and debited to your Card Account. Our prevailing administrative fee is 1.5% of the foreign currency transaction amount for transactions involving VISA International and MasterCard International and 2% of the foreign currency transaction amount for transactions involving American Express International, Inc.

    http://www.posb.com.sg/personal/card...s/default.page
    Citibank:

    Transactions in Foreign Currencies
    Card transactions effected in US dollars will be converted into Singapore dollars. Card transactions effected in foreign currencies other than US dollars will be converted to US dollars before being converted into Singapore dollars. The conversion will take place on the date on which the transaction is received and recorded by us ("posting date"). The currency conversion will be based on our prevailing foreign exchange rate or an exchange rate determined by VISA, MasterCard International, or American Express depending on whether the conversion is done by us ,VISA, MasterCard International, or American Express.

    Notwithstanding clause (a), if your card transaction (including online card transaction) is converted into Singapore dollars via dynamic currency conversion (a service offered at certain ATMs and merchants which allows a cardmember to convert a transaction denominated in a foreign currency to Singapore Dollars at the point of withdrawal/sale), you acknowledge that the process of conversion and the exchange rates applied will be determined by the relevant ATM operator, merchant or dynamic currency conversion service provider, as the case may be. You acknowledge that we do not determine whether a card transaction will be converted into Singapore dollars via dynamic currency conversion and, where your card transaction is for a retail purchase, you may have to check with the relevant merchant whether such conversion was done.

    All Visa card transactions which are converted pursuant to clause (a) will be subject to an administrative fee of up to 2.5% on the converted Singapore dollar amount, or such other rate as determined by us and notified to you. All Visa retail card transactions presented in foreign currency that you choose to pay in Singapore Dollars at point-of-sale via dynamic currency conversion or any online Visa retail card transactions on overseas websites in Singapore Dollars will be subject to an administrative fee of 0.8% on the transaction amount, or such other rate as determined by us and notified to you.

    All card transactions which are converted pursuant to clause (a) and (b) and which are processed by MasterCard International will be subject to:
    the following charges which will be levied by MasterCard International on the converted Singapore dollar amount:
    (1) 1% for card transactions in currencies other than Singapore dollars incurred outside of Singapore;
    (2) 0.2% for card transactions in currencies other than Singapore dollars incurred in Singapore; and
    (3) 0.8% for card transactions in Singapore Dollars incurred outside of Singapore

    an administrative fee of up to 1.5% on the converted Singapore dollar amount, or such other rate as determined by us and notified to you.

    All card transactions which are converted pursuant to above clause (a) and which are processed by American Express will be subject to an administration fee of up to 3.3% on the converted Singapore dollar amount, of which 1.5% will be retained by American Express, or such other rate as determined by us and notified to you.

    http://www.citibank.com.sg/gcb/stati...andbankingfees
    http://www.citibank.com.sg/global_do...nking_fees.pdf
    Last edited by kandinsky; 13th July 2014 at 09:50 PM.

  16. #16
    Senior Member
    Join Date
    Nov 2004
    Location
    BB West
    Posts
    2,184

    Default

    Banks don't charge us, they close shop liao. Get use to it, thr moment you take out $ from your cc, interest started.
    Only Sony device mostly, haha!

  17. #17

    Default Re: Additional charge by banks over Visa's official exchange rate

    Quote Originally Posted by wendysun View Post
    Standard Chartered credit cards would not have this problem.sc.com/hk/credit-cards/
    why are you bumping up this old thread? you got only 1 post?? you working for sc?? or are you a bot? and why are you guys even replying... why am i even replying?? sibei fed up. will report to moderator.
    Objection !!!

  18. #18

    Default Re: Additional charge by banks over Visa's official exchange rate

    Quote Originally Posted by ninelives View Post
    why are you bumping up this old thread? you got only 1 post?? you working for sc?? or are you a bot? and why are you guys even replying... why am i even replying?? sibei fed up. will report to moderator.
    btw , i "used" sc for oversea transaction/banking/shopping. their rates suck !! dont use sc for online shopping.
    Objection !!!

  19. #19

    Default Re: Additional charge by banks over Visa's official exchange rate

    Quote Originally Posted by ninelives View Post
    why are you bumping up this old thread? you got only 1 post?? you working for sc?? or are you a bot? and why are you guys even replying... why am i even replying?? sibei fed up. will report to moderator.
    Lol. I had similar thoughts when I saw the thread in the morning. Forgot about it when I saw it again at night and just replied.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •