![]() That being said, if you were to compare what you’re charged by your credit card provider to what banks or foreign exchange offices will charge you for exchanging currency, you’re likely getting the best rates by using your credit cards.īanks and exchange offices set their own individual rates and the markup can be quite high depending on the currency you’re getting. Even if you spent that much, you’d only be saving $9.20 compared to Visa and $8.20 compared to Amex. ![]() Are You Getting the Best Currency Exchange Rate Possible?Īlthough the exchange rate fluctuates daily, the markup that Visa, Mastercard and American Express charge compared to the Bank of Canada rate appears to be fairly consistent.īased on the straight math, you would pay the least exchange fees with Mastercard, but it’s pretty minimal and likely won’t make a huge difference unless you’re charging $10,000+ USD to your credit card. the currency exchange + 2.5% foreign transaction fee together. With all three providers, there’s a difference of roughly $31.60 between what you would pay with just the base currency exchange vs. Where you do get gouged is on foreign transaction fees. When looking at just the base exchange rates (no foreign transaction fee), a mere 90 cents separates Mastercard, which has the lowest exchange rate, from Visa, which has the highest rate. The graph above shows how much you would pay in Canadian dollars if you were to charge $1,000 USD to your Canadian Visa, Mastercard or American Express credit card with and without foreign transaction fees. How Does the Exchange Rate Affect Your Bottom Line? All three card processors do charge a slight markup compared to the Bank of Canada’s, with Visa’s markup the highest at between 0.44%–0.54%, depending on the currency exchanged. Figures are averaged from daily exchange rates between July 19–23, 2021, and July 26–30, 2021.īased on the data we pulled for these three currencies, the Visa exchange rate is highest and the Mastercard exchange rate is the lowest estimated rates for American Express sit between the two.īut ultimately the differences between the three are quite marginal. The Bank of Canada’s exchange rate is listed as a point of reference to indicate how much each processor marks up the exchange rate. The American Express exchange rate is no longer made public, so for the purposes of this article, we’ve given estimated rates based on past precedent and reports from Amex cardholders. To figure out who charges the lowest fees, we looked at the exchange rates posted by Visa and Mastercard. #Rbc currency converter how to#
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