How Do I Actually Calculate My Foreign Conversion Rate with a Visa Debit Card?

alt on 23/05/2019 - 15:09
Last edited 23/05/2019 - 15:10

Hi,

So I am trying to purchase something in USD using Paypal through my NAB Visa Debit card and I'm trying to compare what rate I would get if I let my card/bank handle the conversion instead of Paypal.

I am lost as to what exactly my rate would be. Currently Paypal is offering something like USD$0.6638 to the AUD$1, which is displayed before I confirm the payment. Using what I think is the correct process, below, I'd be getting ~USD$0.66686 to the dollar.

I'm thinking that what happens is that Visa handles the conversion rate and NAB adds on it's own fee. Would that be correct?
And so according to NAB the Foreign currency transaction fee is 3%. Which I input into the Visa Exchange Rate Calculator which gives a USD to AUD rate of 1.499558.

Can anyone clear this up for me as I can't seem to find anything that explicitly rules out other possibilities.

Thanks in advance!

Financial

Comments

  • dazweeja on 23/05/2019 - 15:33
    +2

    I think that's correct. If it's through the Visa system, as opposed to an ATM withdrawal or POS transaction, I think you should get something close to the Visa rate plus the foreign transaction fee.

    But you might want to consider getting another debit card in future that doesn't charge the foreign transaction fee like ING, Macquarie or Citibank, or, for credit cards, Bankwest Zero Platinum or 28 Degrees.

    • Baysew on 23/05/2019 - 15:37
      +3

      Save yourself the 3% Transaction Fee!

      Cards with No Overseas Transaction Fees

      • dazweeja on 23/05/2019 - 16:06

        That's the link should have posted ;)

        I travel with an ING, Citibank and Bankwest Zero Platinum these days but mainly use the ING. So much easier - and cheaper - than the old days of using money changers and travel cards!

        • alt on 26/05/2019 - 03:29

          Yeah probably will sign up for one of those in the future, thanks for the help guys (or girls)!

  • tonyduffe on 23/05/2019 - 20:03
    +1

    I'm thinking that what happens is that Visa handles the conversion rate and NAB adds on it's own fee. Would that be correct?

    That would be correct. Remember you can do better there's a bunch of companies that don't charge the additional 3% and only charge you the Mastercard or Visa rate. See here and here

    And so according to NAB(nab.com.au) the Foreign currency transaction fee is 3%. Which I input into the Visa Exchange Rate Calculator (visa.com.au) which gives a USD to AUD rate of 1.499558.

    That's correct that's the rate at the time you've done the calculation however once you've done the transaction it will go pending and the rate you're actually build is on the day of settlement for that card transaction.

    Can anyone clear this up for me as I can't seem to find anything that explicitly rules out other possibilities.

    I hope that helps.

    • alt on 26/05/2019 - 03:30
      +1

      Thanks tony! Will definitely be looking into the fee free cards :)

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