Credit card exchange rates

[pagey]

Hi, I realise credit cards often charge a 2% or so fee for foriegn payments, but do they also have an adjusted exchange rate - or is the exchange rate the official rate?

If different card issuers offer different rates and charges, which compnay offer the best card for the frequent traveller?

[dzug]

They all use the interbank rate at the time of the transaction (that is the time the transaction is processed, not the time you use the card). It varies slightly all the time - even for two transactions on the same day. It's the official rate insofar as there is such a thing. Visa or Mastercard may then take a 1% fee - I'm not wholly clear on which and when.

Most card issuers then charge a commission of 2.75% - it doesn't vary a lot.

Nationwide don't charge the 2.75% and may (not sure on this) refund the 1%.

Liverpool Victoria don't charge the 2.75% in Europe but do outside.

I don't know of any others.

Note that the interbank rate is not what you get if you go and buy foreign cash in a bank or bureau de change - that's the tourist rate. It's typically 5% better than that, so using a card usually makes sense despite the charges.