#TravelTips #ForeignExchange #CreditCard #NoFXFee
Hey fellow travelers! 🌍💳 I’ve got a question for you – Is getting a no FX fee card worth it for a short trip? Let’s dive into it together!
So, I’m off to Europe for 2 weeks and I’m torn between using my current BRIM Financial card (with a 1.5% FX fee) or my AMEX SimplyCash Preferred card (2% cashback but 2.5% conversion fee). Here are a few things on my mind:
* Are there any additional costs I should consider beyond the conversion fees?
* Do major credit card companies mark up currency conversion rates on top of FX fees?
* Is it really worth the hassle of getting a new card just for this trip?
Here’s my take: if the difference in cost is minimal (like $50), I might just stick with my AMEX for the ease of use. But if it could save me a significant amount (like $250 without cashback), then maybe it’s worth exploring a new card. What do you think? Any advice or experiences to share? Let’s help each other out! 🤔💸
Personally, I would suggest doing some quick research on other credit cards that offer no FX fees for future trips. It could potentially save you money in the long run and make your travels even more enjoyable! 🛫😊
It’s not worth it. You have already done the math and you have the answer in front of you.
Just get a Wealthsimple Cash account and use the prepaid MasterCard where able. No FX fees and 1% cash back.
Wealthsimple cash card is nice with no fx fees. Plus I really like WS as a platform, easy to use
I would only bother getting a nofx card for long trips. Like 3+ months. My card charges 2.5%, less 2% cash back. So spending $10,000 in foreign currency costs about $50 (as far as I can tell, nofx cards won’t give cash back on fx transactions, correct me if someone has found one.)
The time and hassle involved in getting an extra card is worth more than $50 every year or two.
Also, regardless of card, beware that in tourist destinations, some point of sale systems will try to do the exchange for you. Typically they hide a 4% fee in the exchange rate, and it’s not your bank’s fee, so it doesn’t matter what card you have. If something ever shows you a CAD value for the sale, decline the transaction and pay cash.
You should apply for a Home Trust Visa for travel. It’s also good for if you ever buy anything online in a foreign currency.
If you have enough time to apply for a new card, I suggest applying for Scotia Passport Visa. It also doesn’t charge FX, and if you spend more than $1k in 3 months, you can use the welcome bonus to pay for travel expenses worth at least $300. If most of your usage is for withdrawing cash at an ATM, then prepaid cards like Wealthsimple or EQ Bank are better because they don’t charge atm fees (equivalent to cash advance fees for credit cards).
Scotia passport visa is nofx and has a welcome bonus of points right now. Spend 1000 in the first 3 months and get $300 worth of scene points which can be applied to travel. First year fee is waived. Cancel after the year if the math doesn’t work out for you the following year.
Also has insurance coverage that may apply to your trip which may make the math work for you. Could save you some added cash if you planned to get medical insurance for your trip….just a thought!
You didn’t factor in your Brim Mastercard points.
The points can be applied as a credit at a rate of 1 cent per point.
1.5% FX markup – 0.5% (1pt/$2) = 1%
If I were you with the cards you already have I would use Amex where it’s accepted and be out 0.5% FX fee and fallback to Brim where Amex is not accepted and out 1% FX fee. Amex accceptance in Europe is not that of Mastercard.
Once you get home, convert your Brim points to account credit then pay the rest.
Confirm the 2% cashback is available in other countries, sometimes those cashback cards are only for purchases made in Canada.
Linoleum