Warning to Visa Card users - bad exchange rates

[popstar]

I usually use my Master Card when booking travel, but Ive just had an expensive experience using Visa.

Visa's exchange rates are draconian.

I made a booking through British Airways on Friday August 5th last for a hotel.
Had a problem with Master Card secure code, so I used my Visa.

Usually Master Card works out at a difference of 3% above the interbank rate when buying from overseas, which is a very good deal.

On checking my Visa statement online today, I find that Visa have gouged 7.5% on top of Friday's interbank rate.

So instead of my GBP570 purchase costing me about AU$903.00, it has cost me AU$941.00

Tried complaining to Visa Australia, but both calls I made went to a call centre in the Philippines, got the usual run around, so I'm feeling very frustrated.

I will never use Visa again for a foreign currency purchase unless there is no other option.

I suggest travellers get a Master Card instead.

[bikehike11]

I usually use my Master Card when booking travel, but Ive just had an expensive experience using Visa.

Visa's exchange rates are draconian.

I made a booking through British Airways on Friday August 5th last for a hotel.
Had a problem with Master Card secure code, so I used my Visa.

Usually Master Card works out at a difference of 3% above the interbank rate when buying from overseas, which is a very good deal.

On checking my Visa statement online today, I find that Visa have gouged 7.5% on top of Friday's interbank rate.

So instead of my GBP570 purchase costing me about AU$903.00, it has cost me AU$941.00

Tried complaining to Visa Australia, but both calls I made went to a call centre in the Philippines, got the usual run around, so I'm feeling very frustrated.

I will never use Visa again for a foreign currency purchase unless there is no other option.

I suggest travellers get a Master Card instead.

Hey, thanks for your this aprreciable information. I would love to let others know about this too. :)

[Nothing But Adventure]

Hi There, Currency conversion rates for Visa are also at 3% the problem is however that the issuing banks can add their own little percentages on and so can the merchants.

Generally merchants will charge an extra 1.5-2% on top of the conversion rate and your banks will add an overseas purchase fee of something like $3.50-$5

For instance if you went to a travel aganet here in AU you would NOT pay the conversion rate but they will still slap you with 1.5-2% CC Fees. I can tell you now, that Visa and Mastercard only charge merchants 1.1% and therefore the extra profit goes to the merchant.

The 7.5% you worked out would most likely include your banks fee, Visas fee and the merchants also.