Article: Why is Dynamic Currency Conversion Even Legal?

[Zero]

DCC is not possible with Amex.

Visa and Mastercard publish their exchange rates in advance, so it is always possible to know exactly what you will be charged to the cent (provided you have internet access at the right time and you know what your bank's fee will be).

Currency Converter – Exchange Rate Calculator

Exchange Rates & Currency Conversion Calculator – Use the converter to get an indication of the rate you may receive when using your Visa card. Learn more.

www.visa.com.au

Mastercard Currency Converter | Currency Exchange Rate Calculator

Mastercard currency converter tool calculates foreign exchange rates for all the major currencies worldwide to enable cross-border purchases and ATM transactions.

www.mastercard.com

The Visa exchange rate is updated at midnight UTC, currently 11am Sydney time.
The Mastercard exchange rate is updated at 3.05pm Eastern Time (US), currently 7.05am Sydney time.

(Mastercard used to only publish its exchange rate a day or two late, but this changed in August 2020.)

All my foreign transactions with cards issued by banks in 3 different countries have always used the exact rates quoted by the websites I linked above at the time of the transaction (there seems to be several minutes of leeway with the Mastercard one if you are doing the transaction around 3pm ET).

I believe the HSBC Aus debit card (the one which gives 2% cashback for contactless txns inside Aus) is an exception for certain currencies, where it uses HSBC's own exchange rates.

 

[marki]

DCC is not possible with Amex.

Visa and Mastercard publish their exchange rates in advance, so it is always possible to know exactly what you will be charged to the cent (provided you have internet access at the right time and you know what your bank's fee will be).

Currency Converter – Exchange Rate Calculator

Exchange Rates & Currency Conversion Calculator – Use the converter to get an indication of the rate you may receive when using your Visa card. Learn more.

www.visa.com.au

Mastercard Currency Converter | Currency Exchange Rate Calculator

Mastercard currency converter tool calculates foreign exchange rates for all the major currencies worldwide to enable cross-border purchases and ATM transactions.

www.mastercard.com

The Visa exchange rate is updated at midnight UTC, currently 11am Sydney time.
The Mastercard exchange rate is updated at 3.05pm Eastern Time (US), currently 7.05am Sydney time.

(Mastercard used to only publish its exchange rate a day or two late, but this changed in August 2020.)

All my foreign transactions with cards issued by banks in 3 different countries have always used the exact rates quoted by the websites I linked above at the time of the transaction (there seems to be several minutes of leeway with the Mastercard one if you are doing the transaction around 3pm ET).

I believe the HSBC Aus debit card (the one which gives 2% cashback for contactless txns inside Aus) is an exception for certain currencies, where it uses HSBC's own exchange rates.

I did not know about AMEX. But that explains the transaction charges they are protecting.

 

[serfty]

Came across this last night at a hotel in Japan.

At least I had a choice ... I was presented with a selection of AUD159.60 or JPY14635.

I took the latter on my 28° and was charged $152. That's 5%.

 

[serfty]

The worst I have experienced so far is 15%:

Post in thread 'What cheeses me off'

Sep 10, 2024

Direct Currency Conversion - you have to be alert.

Today I was paying for a hotel booking MYR998 using my 28º and the pinpad was handed to me to enter my PIN - I saw on the screen AUD399.

Handed back and said I wanted to pay in MYR, they indicated what to do and the transaction completed. I have checked my account and the authorisation is AUD347.

$52! That's spot on 15% - really taking the p!55

Mastercard Currency Converter | Currency Exchange Rate Calculator

Mastercard currency converter tool calculates foreign exchange rates for all the major currencies worldwide to enable cross-border purchases and ATM transactions.

www.mastercard.us

• serfty

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[jkbaus]

Using a credit card to withdraw from an ATM will usually mean you are paying a cash advance fee. Rate varies according to which bank’s card you are using. Usually between 2-5%, sometimes capped at say $20.