Which credit cards are the best for online shopping & while overseas ?

[Zoe Nguyen]

I shop alot online, and most of the websites accept Amex & Credit Card, and some accept Paypal as well . At the moment, I have 3 credit cards:
- Amex Platinum card - $ 1 = 1 point. It is about 1.1c earning per $1.
- Citi Platinum Visa Card - It is about 0.8c earning per $1.
- Wizard Card - no fee
- Paypal links to my Citi Platinum Card - 2.5% conversion fee

My obvious option for cash withdraw while being overseas is Wizard (because of this reason I dont really want to use Wizard for Eftpos transactions while being overseas because I want to leave the card in Debit Balance, hope this makes sense).

For local purchase, my obvious option is Amex > Citibank card > Cash

However, for online shopping in foreign currency, which card would be the best (Amex / Citibank/ Paypal/ Wizard) ?

For credit purchases/transactions while being overseas (given that I prefer not to use Wizard), Should I use Amex or Citibank ?

I dont really understand how they calculate their exchange rate & fee.

 

[Alanslegal]

-Citi Platinum Visa Card - It is about 0.8c earning per $1.

Just remember that the Citibank Platinum Visa/Mastercard earning is actually 3 points per $1 for international spend ie. anything charged in non-AUD currency. [I send my CB points to SQ KF which is at a rate of 3CB:2KF] So its upto you if you think the 3/$1 is worth the conversion fee.

Citibank Rewards Credit Card – Platinum | Credit Cards - Citibank Australia

 

[Zoe Nguyen]

Thanks, I forgot about the double points.

I also found the link from Citibank, their visa international transaction fee is 3.3%.
http://www.citibank.com.au/AUGCB/APPS/portal/loadPage.do?path=/info/det/Fees_and_Charges.htm

If my calculation is correct, for citibank paument fee- points= 3.3% -2.2% ( 3 points instead of 1.25 points) = 1.1%
If I use PayPal links to Citibank account, the actual fee would be 2.5% -0.8% = 1.7%
If I use PayPal that links to wizard account, the fee would be 2.5% from paypal with no points.
Effectively it is better to use citibank directly for overseas purchase. However, wizard is still a better option, with no fees.

I haven't found links for Amex fee yet. Strangely enough, their website doesn't declare any information relating to how the fees are calculated.

 

[pauly7]

Just remember that the Citibank Platinum Visa/Mastercard earning is actually 3 points per $1 for international spend ie. anything charged in non-AUD currency. [I send my CB points to SQ KF which is at a rate of 3CB:2KF] So its upto you if you think the 3/$1 is worth the conversion fee.

Citibank Rewards Credit Card – Platinum | Credit Cards - Citibank Australia

Does the 3-1 apply to QFF direct sweep Citibank plat??

 

[Alanslegal]

Does the 3-1 apply to QFF direct sweep Citibank plat??

I don't have an answer to that, sorry.

 

[extracta]

However, wizard is still a better option, with no fees.

I have to agree with this.

Wizard make their money from the interest rate and merchant fees, so as long as you keep your card in the black you will get a reasonable exchange rate and no fees.

When I use this card overseas for purchase or withdrawal I do a BPay transfer that evening to cover my spend for that day.

 

[oz_mark]

Does the 3-1 apply to QFF direct sweep Citibank plat??

I don't believe so.

 

[Zoe Nguyen]

I have just tried to apply for Wizard card, unfortunately it was declined. I have no idea why, I have just applied Citibank last week and got approved. I may look into applying under my partner's name (I dont think he will be happy with my obsession for credit and amex card).

It seems to me between the Citibank and Amex, Citibank is a better choice for overseas purchases. Does anyone know which card uses a better rate ?

 

[lovetravellingoz]

I have to agree with this.

Wizard make their money from the interest rate and merchant fees, so as long as you keep your card in the black you will get a reasonable exchange rate and no fees.

When I use this card overseas for purchase or withdrawal I do a BPay transfer that evening to cover my spend for that day.

I guess it depends on the individual.

At present with the Citibank Plat you can earn 3 points = 2 points to SQ KF. If one redeems for J Savers or J *A, that 2 points is say 8-16 cents per $. This to me outweighs the extra fee cost of the Citibank as this is my goal.


I do use 28 Degrees though for cash.

 

[cove]

When I did the Citi test of an overseas purchase I received a more than fair exchange rate but the currency was quite volatile that day so maybe I was lucky. The Citi fee of 3.3% is real but so are the bonus points that Citi gives you.
Try your card on a purchase overseas Zoe and let us know your results from an online shop.
We chose a different approach and took up an American Express card in US dollars for our American purchases so I don't need to have my wallet lightened by a percentage. Unfortunately that was a struggle that took a long time to get set so it isn't a universal solution.

 

[Zoe Nguyen]

When I did the Citi test of an overseas purchase I received a more than fair exchange rate but the currency was quite volatile that day so maybe I was lucky. The Citi fee of 3.3% is real but so are the bonus points that Citi gives you.
Try your card on a purchase overseas Zoe and let us know your results from an online shop.
We chose a different approach and took up an American Express card in US dollars for our American purchases so I don't need to have my wallet lightened by a percentage. Unfortunately that was a struggle that took a long time to get set so it isn't a universal solution.

Will do try in both cards to see what rate they use, I have quite a few in my list. :mrgreen:

** Impatiently waiting for my cards**

 

[cove]

Well Zoe when those cards arrive do try to be careful in the use of credit. I have travelled with folks who couldn't afford to save any more money and online shopping that is GST free could give you the same problem.
Not your daughters jeans for $30 from Nordstrom Rack is an example of how different clothes costs can be when you look at Australian pricing. Cosmetics can be about a third of the Australian price so yes you could get way too excited in the short term.
I couldn't imagine buying my clothes or shoes in Australia with the vast price differences and that is just the start.
Ready,Set,Go!

 

[DeKa]

You could look at this another way, and use the 28 Degrees card for purchases, and get another transaction account with low/no international fees for cash. This is what I've done.

The two transaction accounts I know which do not charge a foreign currency conversion fee are:
ING Direct Orange Everyday - no currency conversion fee and flat rate ATM fee overseas of $2.50. No minimum deposit, no monthly account keeping fees
NAB Classic Banking Gold - no currency conversion or ATM fees, but must deposit $5000/mth

This way, you can use the 28 Degrees as a credit card (as it's designed) and either pay nothing (NAB) or very little ($2.50 on $1000 withdrawal isn't worth worrying about) to get cash out when you need it.

 

[cove]

Have just tested Mrscoves CitiSelect Qantas card by prepaying a Hilton UK with it. I want to see the real points and the real final charges which I should see in a few days.It is supposed to be 5 points a dollar to QF and 3.3% in foreign exchange fee.