![]() The OANDA rate is always better than the Visa or Master Card rate.In the 3 days I looked at, Master Card always had a higher rate than Visa, costing you anywhere from 2 to 29 cents more that Visa on a transaction of 50 Euros. Master Card has consistently one of the worst rates for every day.Obviously my sample size of only 3 days makes it impossible to draw any scientific conclusions, but just with this quick look I feel pretty comfortable taking Visa’s word. To me, this says that on average, Visa rates are a pretty good representation of wholesale markets. On July 30th, Visa had one of the worst exchange rates, but on September 16th it had one of the best. The rankings are different on any given day.What are the takeaways from these charts? For more information on the sources, please see the bottom of the post. Each date is sorted by highest cost (in USD) of 50 Euros. The tables contain the EUR to USD currency exchange rate for a transaction that was posted on the given date. I looked up the currency conversion rates on three different dates, just to see if there were any discrepancies. ![]() ![]() The rates listed in Yahoo!Finance, for example, are said to be “bank rates,” while OANDA says its rates reflect interbank rates for transactions of $1 million or more. With the exception of Master Card and Visa, every source can be considered a player in the wholesale currency market. ” To answer this question, I looked up the currency conversion rate from a number of different sources and put them in the tables below. They only state that “the Visa rate is selected from a range of rates available in the wholesale currency markets…” Needless to say, I’m curious to know how Visa’s rate compares to this “wholesale currency market. How do Visa’s currency exchange rates compare with wholesale currency markets? If you noticed in the statement above, Visa remained pretty ambiguous about how they come up with each day’s exchange rate. Most consumers find that using Visa is a convenient and cost-effective way to make purchases and obtain cash when traveling internationally. The rate Visa makes available to issuing banks may vary from the rate Visa itself receives. Visa makes this rate available to issuing banks, which may adjust the rate when billing cardholders by applying a foreign transaction fee. The Visa rate is selected from a range of rates available in wholesale currency markets or the government-mandated rate in effect one day prior to the applicable central processing date. Since it is pretty useful, I just copied and pasted the website’s response to below:Įvery day-except weekends, Memorial Day, Christmas Day and New Year’s Day-Visa calculates the rate for the next day’s transactions. So how does Visa calculate its currency exchange rate? has a very informative currency exchange FAQ page. But what about Visa? How do they come up with the rate that all Visa branded credit cards use (before the bank foreign transaction fee), and how does that compare with other options for currency exchange? As it turns out, Capital One simply uses the exchange rate that is posted on the Visa Corporate Exchange Rates webpage (Link Updated 11/2014). In my previous post, I explained exactly how Capital One calculates its currency exchange rate.
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