Personal Finance

Saving 2.5%

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  • Jan 1st, 2015 5:48 pm
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Deal Addict
Jan 2, 2013
1640 posts
442 upvotes
Mississauga

Saving 2.5%

So as I make another trip out of the country and get ready to pay 2.5% on my CC transactions (I used to have the Marriott visa but for some reason it never worked a lot of the times.) I'm wondering if I can get a "prepaid credit card" from the US at only the exchange rate (I'd get it in store and pay USD cash), and then use it in other countries.

Have I now successfully avoided paying 2.5%? Or did I miss a caveat?
26 replies
Deal Addict
Jul 15, 2009
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How much of a fee are you going to pay to get the US cash?
Deal Addict
Jan 2, 2013
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Mississauga
Not much.. Preferred exchange rate (TD in this case.) I'm sure there's ways to get better exchange rates too.
Deal Addict
Sep 15, 2008
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Pawtucket
apoorv wrote: So as I make another trip out of the country and get ready to pay 2.5% on my CC transactions (I used to have the Marriott visa but for some reason it never worked a lot of the times.) I'm wondering if I can get a "prepaid credit card" from the US at only the exchange rate (I'd get it in store and pay USD cash), and then use it in other countries.

Have I now successfully avoided paying 2.5%? Or did I miss a caveat?
Most of the prepaid credit cards come with an activation fee and can only be used within the US. Just something to be aware of.
Deal Addict
Jan 2, 2013
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Mississauga
redboy69 wrote: Most of the prepaid credit cards come with an activation fee and can only be used within the US. Just something to be aware of.
That's what I was looking for.. The visa prepaid (US) page says millions of locations but I'm sure that'll end up being US only.
Deal Addict
Jan 2, 2013
1640 posts
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Mississauga
If you read the OP, I mention having the Marriott card previously but having issues with it going through quite a few times while in other countries.. I'm assuming I'll have the same luck with the Amazon / Sears if they're run by the same bank?
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Jan 27, 2007
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T.
How much are you spending? Even if you spend $5k, 2.5% is only $125.

Is it really worth worrying about?

Also you will get a min of 1% in points on your card so ur net cost is even less.

Priorities.
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Jul 17, 2008
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peelhic wrote: The amazon.ca visa card has no foreign transaction fees so you might want to look into this one if your going to the US alot.
https://www.chase.com/online/canada/canada-home-en.htm
Does this also apply going to Europe/Japan/South America, etc?

There is also the exchange rate vs the exchange fee. For example (a random example, I am not saying this is true), Chase could not charge the 2.5% exchange fee, but their exchange rate could be much worse than other credit cards that do charge the 2.5%
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Jul 27, 2003
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Edmonton
Messerschmitt wrote: There is also the exchange rate vs the exchange fee. For example (a random example, I am not saying this is true), Chase could not charge the 2.5% exchange fee, but their exchange rate could be much worse than other credit cards that do charge the 2.5%
All VISA branded cards use the same exchange rate provided by VISA, so a foreign transaction through the Chase VISA card will definitely be 2.5% less than the same transaction using another VISA card that does charge the 2.5% fee.

Other cards (e.g. MasterCard, AMEX) have their own exchanges rates.
Deal Addict
Jan 2, 2013
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ChinpokoMon wrote: All VISA branded cards use the same exchange rate provided by VISA, so a foreign transaction through the Chase VISA card will definitely be 2.5% less than the same transaction using another VISA card that does charge the 2.5% fee.

Other cards (e.g. MasterCard, AMEX) have their own exchanges rates.
Which I asssume would be fairly similar..
Deal Expert
Mar 25, 2005
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Jucius Maximus wrote: +1, this applies to Chase credit cards such as amazon.ca, Future Shop, Sears, etc.
That is not true. Read the disclosures per card.
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Jul 27, 2003
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apoorv wrote: Which I asssume would be fairly similar..
The AMEX exchange rate is usually a little better than VISA's, but not 2.5% better so you'll still come out ahead with Chase's no-exchange-fee cards.
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Nov 29, 2011
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Grimsby
+1 for the Amazon.ca Visa. No US transaction fee. I have one and only use it on trips to the States. I call ahead of time and warn them of the States I'll be travelling to and for which dates.
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Deal Addict
Jan 2, 2013
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Mississauga
Yeah I'll probably reapply and hope it works.
Sr. Member
Sep 22, 2005
957 posts
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BC
no forex markup of 2.5% with chase cc.
Used in USA, Asia, Mexico.
beware of DCC, always stick to the local currency,
aprofetto wrote: +1 for the Amazon.ca Visa. No US transaction fee. I have one and only use it on trips to the States. I call ahead of time and warn them of the States I'll be travelling to and for which dates.
Sr. Member
Sep 22, 2005
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BC
if you shop at costco us, walmart usa has no charge for amex gift card this month. so at least you can turn the shopping to some points.
Deal Expert
May 30, 2005
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Richmond Hill
apoorv wrote: If you read the OP, I mention having the Marriott card previously but having issues with it going through quite a few times while in other countries.. I'm assuming I'll have the same luck with the Amazon / Sears if they're run by the same bank?
Sort it out with Chase - it shouldn't have any problems being used overseas. That is, after all, the main purpose of the card.

Also, if you were going to use prepaid, why not just use cash?
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Deal Addict
Jan 2, 2013
1640 posts
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Mississauga
Well just avoiding carrying cash (and who knows how much)- also it's easier to just have it preloaded and use it as opposed to get it exchanged, use a portion and then keep the rest or re-exchange it back. A card is definitely more convenient.

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