Foreign Purchases - AMEX VS. CITI

[markyboy]

I am thinking about signing up for a Citi Visa Select card, particularly for the extra points on foreign purchases (5 with CITI SELECT vs 2 with Centurion)

Could anyone with give me an idea of the difference in exchange rates, and also whether the 5 points covers all overseas transactions, or is there some catch.

 

[greenfrog86]

I am thinking about signing up for a Citi Visa Select card, particularly for the extra points on foreign purchases (5 with CITI SELECT vs 2 with Centurion)

Could anyone with give me an idea of the difference in exchange rates, and also whether the 5 points covers all overseas transactions, or is there some catch.

You'll find that the exchange rate is calculated and applied by the scheme - in this case Visa for the Select card and Amex for the Centurion card.

To my knowledge, each scheme only has one exchange rate and does not alter this for different products... ie you won't get a better Visa exchange rate between a Platinum and a Signature card.

However there are a few things to keep in mind

• American Express usually calculates the rate by first going through USD... ie Thai Baht purchase goes to USD and then to AUD
• I believe that there are some currencies that could be directly converted - read the T&Cs for the actual card as this is explained
• Visa may also do this, however I'm pretty sure most major currencies are converted directly
• The product issuer (eg Citi) is responsible for the fee that you are charged - this is usually a combination of a fee they are charged by Visa and then a cut for themselves. I believe that Citi is one of the highest in the market at 3.3%

See here for a calculator provided by Visa Exchange Rates - Visa Corporate

 

[markyboy]

so does Amex provide a better rate or does Citi ?

 

[greenfrog86]

so does Amex provide a better rate or does Citi ?

You're welcome.

I'm not doing all the work for you....

The rates are all set daily and should be very very close.

The key thing I see is the fee that is involved. Citi is 3.3% and I think Amex is 3%.

I really don't think that the exact rate used by each scheme is really that important. Certainly not enough to make a decision on the card

 

[cove]

Basically with Citi Select ( non Qantas ) I find you are effectively paying 1 cent per point to Kris Flyer seeing you earn a net 3.33 points for a 3.3% fee.
Now that is right on my pain threshold to earn points!

 

[LovemyCC]

Just a bonus for citi customers when dining at nice restaurants/shops they offer 10-20% off the bill. Sometimes Citibank customers also get a "rebate" (more like a discount) off their purchase. That's my experience in Malaysia. I'm a citi signature user. Had problems before with Amex blocking my account while overseas.

 

[markyboy]

Basically with Citi Select ( non Qantas ) I find you are effectively paying 1 cent per point to Kris Flyer seeing you earn a net 3.33 points for a 3.3% fee.
Now that is right on my pain threshold to earn points!

i wouldve thought 1 cent per point was pretty good myself. also, doesnt the card pay 5 points per dollar for overseas transactions ?

 

[ftm]

I've generally found the exchange rate on Amex better than on Visa. But I haven't done a comparison for a couple of years and I did hear that Amex may have adjusted upwards their 'cut' making them not as attractive as they were previously.

I've always been sceptical of the higher points for foreign exchange spend. They are obviously getting that back from the cardholder somewhere, with the likely place being the exchange rate.

 

[cove]

International purchases on Citi Select earn 5 Citi Reward points. Those 5 points convert to a net 3.33 Kris points and Citi charge a fee of 3.3% for this.

 

[burmans]

i wouldve thought 1 cent per point was pretty good myself.

I'm with cove on this 1c / point is about my pain point for SQ anyway. I'll do it for meeting a target for a flight but there are enough sub 1c deals around (e.g. the ATO tax one) that its not my preferred way to go.

 

[cove]

The greatest thing is everyone can make up their own mind.
When you see that you are a few thousand points short on a trip in premium economy, business class or first class those points may become worth a lot.
You make the call to enjoy the travel you book.