Foreign transaction analysis - Amex v Global Wallet

[AviationNZ]

I've been doing some analysis on foreign purchases, namely for my Amex Platinum Edge v Velocity Global Wallet. I'd be curious to get feedback from other AFF's in case I've overlooked something.

The below table is based off purchasing an item in USD for $1000, converting using today's Reuters rate, then adding the foreign transaction fee to get the total charge that would show up on my statement. I've then looked at what return I'd get in USD from my Global Wallet if I put this same AUD amount on the card and converted it using today's value.

USD charge	$1,000.00
Conversion rate	1.3626
AUD amount	$1,362.60
Foreign trans fee %	3%
Foreign trans fee $	$40.88
Total AUD amount	$1,403.48
Global Wallet conversion rate	0.6992
USD amount	$981.31
Difference	1.9044%

So by my calculations, using the Amex would be 1.9% better off.

When you look at points earn, I'll get 1 MR point per $ spent on the Amex, and 1 Velocity point per $ spent on the Global Wallet, so very similar. However, the MR points can be transferred to other programs and also, I always wait for a 15% bonus promotions before converting them, so to me, it's a no-brainer to use the Amex.

Is there anything I'm missing?

 

[Colin 2905]

Even though Amex rips you off less in this example, you're still paying 3¢ per point. If you're extracting at least 3¢ pp worth of value on whatever you're redeeming them for, that's fine, but I'd much rather use one of my cards which doesn't screw me over on the exchange rate, and not worry about the points.

 

[albyd]

If you're spending enough to make it worthwhile, should look at Citi Signature (regularly has free for life promotion) or Prestige ($700 annual fee) pay extra points on foreign transactions which compensates for the 3%. Some Amex products (like Platinum charge if you're putting through enough to justify annual fee) offer 2 MR per dollar on foreign transactions. Could help tip calculations in favour of putting foreign transactions on your cards.