Qantas Cash

[fdken]

Hopefully someone can check my assumptions:

I am looking at transferring some cash to the Qantas Card for upcoming trips to multiple destinations. I have a minor balance from a trip to new Zealand earlier.

I am wondering about the point in loading into the other currencies rather than just loading as Aus dollars

My reading of PDS is that you load into different currencies at the exchange rate on the website, however if you do not have the currency balance available it will take at the MasterCard wholesale rate plus 3%. When I compare the rates it seems to me better value to transfer at wholesale plus 3% and not have small amounts left over etc. as I think it is a better exchange. refer https://www.qantascash.com/media/pds/qantas-cash-long-form-pds_19july2013.pdf

When I look at Qantas echange rates for today Buy Foreign Currency | Multi Currency Card | Qantas Cash Currency Card
I get 1 Aud : 0.968 Cad : 91.01 Yen : 1.0223 NZD : 0.889 USD

MasterCard wholesale rates are https://www.mastercard.com/global/currencyconversion/ for 1st April
1 Aud : 1.0211 Cad : 95.22 Yen : 1:0604 NZD : 0.9227 USD which even with an extra 3% taken off should be a better rate.

For simplicity I don't see the value in locking in a currency unless you want to gamble on currency rate movements which could go either way.

I am sure someone will tell me if I am incorrect.

 

[markis10]

Locking in the rate obviously means an initial premium above spot rates. If your not locking in the currency, I would question why use the card, given its 3-5% dearer than other methods?

 

[fdken]

I think every card, including just credit card charges a rate 2.4-4 above the wholesale rate for foreign currencies so I don't think there is much of an ability to avoid it. I have always used a Citibank Visa Debit card on previous trips. At least with Qantas I get points and it gives me an alternate card in case I lose the citibank one, (Not that it has ever happened), I am thinking that putting in as Aud would not have any commission rate.

 

[markis10]

I think every card, including just credit card charges a rate 2.4-4 above the wholesale rate for foreign currencies so I don't think there is much of an ability to avoid it. I have always used a Citibank Visa Debit card on previous trips. At least with Qantas I get points and it gives me an alternate card in case I lose the citibank one, (Not that it has ever happened), I am thinking that putting in as Aud would not have any commission rate.

No, there are a lot of cards that give you close to spot rates these days. If you look at the Citibank Plus, you can withdraw at many ATMs world wide with no fees and very close to XE.com rates (I use it to make small cash purchases in Asia on a regular basis, withdrawing $20 no fees at a time keeps the leftover change to a minimum). ING offer similar but do have a small fee, while Bankwest Plat offers credit and points and 28 degrees similar in terms of credit. They will all be at least 4% cheaper per transaction.

Example

Real world scenario, need beer money on a Saturday night in Singapore:

Citibank ATM $200 SGD = $172.08 debited to my plus account or 1.1622
Qantas Cash currently 1.1278


XE
200.00 SGD = 170.317 AUD
Singapore Dollar ↔ Australian Dollar
1 SGD = 0.851584 AUD 1 AUD = 1.17428 SGD

 

[fdken]

I dragged the following off of the citibank terms and conditions as I have a Citibank Plus account with attached Visa Debit. I think it is one of the best offferings as you also are earning interest on the funds. But if there is a 3% on wholesale cost vs the higher exchange into currency, the difference from 2.5% to 3% is offset by the FF points.

I do appreciate your reply to the my initial query
Thanks
fdken

Citibank Visa Debit Card / Citibank Debit Card – overseas transactions

5
International Transaction Fee

2.50%
6
Charged for all overseas ATM and electronic point-of-sale transactions made in a foreign currency using your Citi
Visa Debit / Citi Debit Card. For Citi Visa Debit transactions, this amount includes a 1% service and assessment
fee payable by Citibank to Visa

 

[markis10]

I dragged the following off of the citibank terms and conditions as I have a Citibank Plus account with attached Visa Debit. I think it is one of the best offferings as you also are earning interest on the funds. But if there is a 3% on wholesale cost vs the higher exchange into currency, the difference from 2.5% to 3% is offset by the FF points.

I do appreciate your reply to the my initial query
Thanks
fdken

Citibank Visa Debit Card / Citibank Debit Card – overseas transactions

5
International Transaction Fee

2.50%
6
Charged for all overseas ATM and electronic point-of-sale transactions made in a foreign currency using your Citi
Visa Debit / Citi Debit Card. For Citi Visa Debit transactions, this amount includes a 1% service and assessment
fee payable by Citibank to Visa

If you have a close look you will see that the Citibank Plus does not have the fee, ITS FEE FREE! As per my example, there is no ATM fee and the exchange rate is very close to the mid market rates published by Onanda or XE. If you want to pay 3-4% per transaction, feel free to continue down your present path, dont forget to add the ATM fees as well.



If you look at the fees and charges doc:

http://www.citibank.com.au/global_docs/pdf/Feesandcharges.pdf

 

[serfty]

Here's an example of a withdrawal transaction I did in California last month:

XE Travel Expense Calculator

Credit and Debit Card Charges Calculator

Date of transaction: March 8, 2014

USD/AUD mid-market rate: 1.108840

Receipt or invoice amount: 43.00 USD

Card statement amount: 47.45 AUD

Value at mid-market rate: (excluding charges) 47.41 AUD

Foreign exchange charges: 0.04 AUD or 0.075%.