Since the exchange rate differences between Visa, Mastercard and American Express are relatively minor, the best strategy for saving money on purchases in foreign currencies is using a credit card that doesn’t charge foreign transaction fees. ‘No foreign transaction fee’ credit cards Generally speaking, if you’re trying to get USD from your bank, the rates will be comparable to what your credit card charges, but if you need a currency that’s not commonly held such as the Turkish lira or Brazilian real, there could be a markup of up to 10%! Other ways to save on foreign currency purchases 1. 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. 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 American Express, but it’s pretty minimal and likely won’t make a huge difference unless you’re charging $10,000+ USD to your credit card. All three card processors do charge a slight markup compared to the Bank of Canada’s, with Mastercard’s markup the highest at between 2.45% to 2.61%, depending on the currency exchanged. Figures are averaged from daily exchange rates between Novemto November 29, 2022.īased on the data we pulled for these three currencies, the Mastercard exchange rate is the highest and the American Express exchange rate is the lowest estimated rates for Visa 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. You might not always notice these fees on your credit card statement, as many issuers automatically include them in the purchase amounts charged to the card, rather than listing the fees as separate line items.ĭoes one card processor offer lower exchange rates than the other? How do the exchange rates and foreign transaction fees affect your bottom line in the long run? Visa, Mastercard and Amex exchange rates compared The foreign transaction fee charged by your card issuer, e.g., RBC or TD. This is the difference between the value of the Canadian dollar and the value of a foreign currency on any given day.

The daily currency exchange rate set by your card processor, e.g., Mastercard, Visa or American Express. There are two factors that determine how much your Canadian credit card is charged when you make a purchase in a foreign currency: We may receive a commission for products or services you sign up for through partner links. Please be aware this post may contain links to products from our partners. We adhere to strict standards of editorial integrity to help you make decisions with confidence.

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