Using MasterCard abroad
Closer comes the summer, more people are thinking about a vacation. And while it is not interesting to think of holiday money, not thinking about it can cost you £100 additional money during the travel.
Some analysis showed that the specialist overseas credit cards gave you the best offer during the travel however are all the same? Which is really best card?
We noticed that MasterCard credit cards have better exchange rate as that with logo of Visa. But one test isn’t enough. So we acted in a more comprehensive analysis, that we would find out, within this week, if this is true.
The specialist overseas credit cards-what are they?
Some background to this first. Debit and credit cards can be used everywhere, where you see the symbol of Mastercard or Visa, depending on what brand of card. But when you’re using the card abroad, the publisher translates your purchase into the base currency on the card. There are two factors that have an effect:
- The card issuer’s exchange rate. If you look at any credit card will have the logo of MasterCard or Visa. This is the issuer of the card, and they set their exchange rates, which is the rate of your bank gets when you use your card abroad. You can check your Mastercard’s and Visa’s here.
- The card provider’s transaction fee. Charges for transactions by your card provider. For example, HSBC 2.75% charged ” fees “, if you use your standard debit card to spend abroad.
So, when you spend abroad, Bank or credit card provider first used at the wholesale level by Mastercard or Visa on the day when the purchase was supposed to be an Exchange. Then adds his Commission, usually between 2.5% and 3% (you will see the charge on your statement will be divided). You can also see other fees for cash withdrawal, and some even charge a fee for use.
But that’s not our goal for this article. Some specialists in overseas credit cards as our top pick, Halifax clarity, do not charge these fees. Together, we know that these cards are the best way to spend abroad. But all of these cards is the same? Does it matter which one you choose? We were wondering, and for that, because there are no other fees, it’s a straight Mastercard vs. Visa comparison.
Note: we are not included in this comparison is American Express, because while a quick Survey showed, its rates are comparable with Mastercard and Visa cards, issued by a non-Sterling transaction has a 2.99% fee attached.
MasterCard vs. Visa – is one of the cheaper than everyone else?
Do the calculations on the back-of-the-envelope last week, we worked that consumption was the cheapest on the specialized credit card overseas use Mastercard, as issuer, due to Mastercard rate faster than this day Visa.
But Mastercard always offer better prices than Visa? This is the case for the euro and the us dollar (the only major currency that we use for the calculations), or is it better across the Board the Mastercard?
If you want to learn, we have posted courses for wholesale tariffs, Mastercard and wholesale tariffs for issuing a visa for euro and us dollars on two different dates in a month for the last year, to give us a decent number of data points for comparison.
As you can see, almost every data point, courses are either the same as MasterCard Visa or above. There are only a few points where the opposite is true. by breaking down the euro and u.s. dollars, we had 48 different data points. Of these:
Most of the time, the differences are small-it’s not something you would notice when spending $ 10 at a time. But sometimes these differences can be quite large.
For example, in mid-January 2015, for the euro, there was a difference in the amount of 0.04 €, which is a big difference for one euro exchanged. Scale that up and you can get 132.88 € spending £ 100 value at Mastercard, in comparison with 128.89 € on Visa-big 4 € differences, depending on the low values involved.
So Mastercard WINS for the major currencies, but what happens if we look a bit less used currency?
We have looked at in two currencies, the Turkish Lira and the Brazilian real; and the same applies. Although we have looked at only a single data point per month for this currency, still we can see that most of the time, Mastercard has a Crown exchange rate.
How much better is the Mastercard rate the rate of Visa?
Graphs in particular show that Mastercard plastic, barring some irregularities, gives you a better rate than a Visa card for the comparable consumption. But how much better is the rate Mastercard?
We have analyzed the spread with ” index ” rate Mastercard euros over one year (which means that it is always 100 per chart), and then allows Visa euro exchange rate is changing around him.
This is a close-closer as the graph makes it look like we give a small variance in the vertical axis to point out the differences. But it does show that Mastercard’s in points, we’ve caught the winner for all except two.
On average, from data sets in euros and dollars we were looking for, MasterCard’s conversion rates for 0.6% higher than Visa. While we are not checked every day and every currency, it is likely that the data we have shows a pattern that would be replicated.
What does this mean in practice?
In practice, this meant that we were somewhat shuffled after our recommendations of the best maps to take with you to spend abroad, which ensures that we tell you to use Mastercard cards tend to give you the ever so slightly more bang for your buck.
If you do not have a specialist expatriate card already, then this would mean that the reshuffle you have selected the Mastercard. However, if you do not already have an overseas card and this is the Visa and you are satisfied with it, then it’s probably not worth changing, unless you spend a lot every year abroad.
In this study we have stressed and pointed out the differences between the levels. But the fact remains that on average by 0.6%, the difference between the two Exchange rates for most of it, leaving only once, usually equal to one euro or dollar or two difference.
If you want to get a new card, or change the card that you have, then our top picks-reshuffled in the wake of this research-can be seen in cheap Travel credit cards Guide. A brief summary is here:
Are there any other differences between the cards MasterCard and Visa?
In the Uk, you don’t really notice any difference. The card is issued in pounds and you will spend in pounds, that exchange rates are not affected. You may find some of the retailers that accept one and not the other, but this is the exception rather than the rule in this country.
However, if you use credit cards on vacation, you can see more than the difference in the exchange rate. Both Mastercard and Visa are accepted at more than 36 million retail outlets all over the world. But it can happen that traders abroad and others do not accept one-it is unlikely that the card exactly the same coverage. Do let us know on the forum, if you find a country or a place where I wouldn’t have to use MasterCard or Visa, but others did.