Credit card for non-AUD purchases

[GPSGuided]

With falling AUD, got into reviewing my CC's foreign currency purchase arrangements. Has any one used or looked into 28degrees Mastercard? They promote themselves as a foreign currency fee free Mastercard service and uses MC International's daily exchange rate, rather than some arbitrary internally set Forex rate. All sounded pretty favourable than using my AUD CC for such purchases.

Thoughts? Alternatives?

[Strider]

Why not use PayPal?

[GPSGuided]

Good question. Two reasons I guess. 1) PayPal is not universal on all commercial sites/stores. 2) PayPal's Forex rates can be a bit dodgy the last time I looked. Looking at MC Global's AUD-USD settlement rate for 25/5 at 0.7817 is pretty close to market's spot on Mon 25/5 (just a tad above 0.78). AUD has been falling a bit since and is now at 0.7688 spot. MC Global has yet to publish their settlement rate for today.

[norts]

What about getting a traveller card. You can lock in your exchange rate.
norts

[GPSGuided]

That's another option I guess but you'll have to be happy to keep a balance with the traveller card's carrier along with projections on one's future spending pattern, or more hassles with fund transfers. I'm happy to accept the rate of the day as long as it's close to the market rate but less happy with the various forex fees of traditional CCs.

[whynotwalk]

Hi GPSG - we used a 28 Degrees MC on our 2013 European trip. It was excellent. We stacked it with $A before the trip and used it as a debit card. At the time that meant it didn't attract anything more than the ATM user fee of whatever random ATM we were using (which didn't add up to much). But they do change their rules, rates and charges, so they may treat ATM withdrawals differently now. I would read all the fine print carefully. And be sure to pay off any debits before the due date, as their interest charges are fierce.

Returning to your original question, we now also use it to buy on-line because of its exchange-rate advantage. Overall I have had no issues, and reckon it's well worth considering,

cheers

Peter

[GPSGuided]

Thanks Peter for sharing your experiences. Based on what I've read, they've added a cash advance fee. Not sure if that affects ATM withdraws when the card acct is in credit. I think for O/S ATM withdraws, a 'traveller card' may be a better option as one can budget the amount that'll be expended within a relatively limited time frame. For general net shopping, I'm not willing to keep a significant balance in the account.

Went through their online application process and was surprised how quick and easy it was. They really are pushing credits with little oversight. No wonder we hear those 'stuck in debt' stories in the media. At 21% interest rate, it's easy to get hurt.

[Hallu]

Paypal takes a currency conversion fee, about 5 %, included in its own exchange rate. You think it's free because you don't see any added fees, but it's included in paypal's exchange rates.

[GPSGuided]

Paypal takes a currency conversion fee, about 5 %, included in its own exchange rate. You think it's free because you don't see any added fees, but it's included in paypal's exchange rates.

Thanks for confirming this. That's why I was interested in 28 Degree's use of MC's global daily settlement rate, which has a much tighter spread to market's spot rate for the day. PayPal is good for somethings but dodgy for others.

[MikeB62]

I use a 28 Degrees card for foreign currency purchases and it is a great solution. Always the best exchange rate and no other fees. With Paypal I have it as one on my cards on file and use it no problems. I always leave the purchase in the local currency where I am buying and don't use the offered conversion to AUD, the 28 degrees card exchange rate is always better.

They did change rules and It no longer good for cash advances. When traveling overseas I use 1. 28 Degrees as credit card only and 2. Citibank Plus card for ATM withdrawals and as a debit card. Whirlpool forums have huge threads on these and other cards.

[GPSGuided]

Thanks MikeB62! Whilst I am aware of the fees associated with cash advances (on credit), do you know if there are similar fees for withdrawals from an account balance in credit i.e. Not 'cash advance'? Looking into Citi Plus too...

[MikeB62]

Yes, these days they do charge as cash advance even for positive balance. So 28 degrees only suitable as a pure credit card. But about the best free card for foreign currency purchases you can get.

[GPSGuided]

Thanks for the confirmation and Citibank Plus looks to be a necessary compliment card for O/S travels.