Using credit card overseas, worth the point ?

[Mqrko]

Hi everybody,

I'm going to China in a few days. I have an ANZ FF Black credit card.
Does paying with my credit card worth the FF points even though I'm paying the overseas transaction fee of 3% ?

Also there is a condition saying that
"A charge that is made in a foreign currency other than US dollars will, when then conversion is done by American Express, be converted into US dollars before being converted into your billing currency"

Does that mean I get charged twice the fees ?

Thank you for your help

 

[Mattg]

The short answer is that IMHO no, it's not worth paying a 3% credit card surcharge just to earn frequent flyer points. But if it's your only method of payment and you'd be paying the surcharge anyway then I suppose the extra points are a bonus.

If you're travelling overseas regularly, there are other credit cards that come with no foreign transaction fees. The 28 Degrees MasterCard and Bankwest Zero Platinum cards both have no annual fees or Forex fees. The Bankwest Qantas Platinum card has no forex fees and awards 0.75 Qantas points per $1, but there is a ~$160 annual fee.

 

[Renato1]

I only take Australian and Amex cards overseas as backups in case my zero foreign exchange fee cards - Citibank Plus Visa Debit card (which I use at ATMs) and 28 Degree Mastercard - get stolen. I value Qantas points at around 1 to 2 cents each, which isn't enough to cover the 3% fees.

When Amex does the conversion, you don't get two sets of 3% fees.
Regards,
Renato

 

[Mqrko]

Yes I found out about the 28 degrees and citibank plus early this week but it's a little bit too late to apply for it :/

It only worth it if someone value the points at more than 3 cents each.
So for my case, it should be fine as I use them only to upgrade or claim a long haul flight to business class. It's about 4-5 cents each point on average.

 

[burmans]

Yes I found out about the 28 degrees and citibank plus early this week but it's a little bit too late to apply for it :/

It only worth it if someone value the points at more than 3 cents each.
So for my case, it should be fine as I use them only to upgrade or claim a long haul flight to business class. It's about 4-5 cents each point on average.

So what's your alternative for paying, many other methods (ATM cash advances, currency purchase in Australia) also incur either fees or poor exchange rates (which has the same effect largely)?

If you are going to wear the cost and don't have the above mentioned cards would not necessarily say CC purchase is bad. It certainly is bad in comparison to 28 degrees or the Citiplus card but in this case they are not your realistic options to compare to.

 

[Dr Ralph]

Cash is always great.

 

[Mqrko]

I exchanged some cash for the trip for the food and transport for 5 days but I know that I will spend quite a lot doing shopping. I could buy it here in Australia but it's very hard to find it.

I can also bring some AUD I will exchange once I arrive in China.

Otherwise, it's ANZ credit card or withdraw at the ATM with my debit card from my saving account.

 

[coco50]

Hi everybody,

I'm going to China in a few days. I have an ANZ FF Black credit card.
Does paying with my credit card worth the FF points even though I'm paying the overseas transaction fee of 3% ?

Also there is a condition saying that
"A charge that is made in a foreign currency other than US dollars will, when then conversion is done by American Express, be converted into US dollars before being converted into your billing currency"

Does that mean I get charged twice the fees ?

Thank you for your help

I never use my rewards CC overseas. I have a 28 Degrees card with no forex fees. Although I may miss out on a few FF points, I don't get slugged the conversion fees for each transaction.

 

[Cruiser Elite]

Do not bother to bring AUD or USD to China and do not bother to try to buy RMB in Australia - China has a fabulous ATM system and they are on every corner. Daily ex rate set by Bank of China and always adhered to - cash out in China via Citi Debit card by far best way to go. FWIW I use Citi Prestige to pay every transaction poss in China and in every other country - cash last resort - but as always we are all different - YMCWV.

 

[Mqrko]

If I use my debit card to withdraw money at the atm, I still get charged 3% though + $5 fee so it's worse than the credit card :/

 

[Renato1]

Keep in mind that when withdrawing cash from foreign ATMs, if you have a credit card linked to a savings account, you can't access the saving account - all you can get is cash advances from your credit card, which attracts cash advance fees and interest as well as foreign exchange fees.

It's not quite as bad with a debit card.

Also, some of the banks' ATM cards that one uses solely to access savings and pay for EFTPOS at home, have slightly lower foreign exchange fees at foreign ATMs. My CBA Keycard only had a 2.something% foreign exchange fee at ATMs last time I used it a year ago. Check out whether there is any saving on the ANZ Access card.
Regards,
Renato

 

[Cruiser Elite]

So take the course of action that you believe best suits you Mrqko

 

[Mqrko]

well, I got some cash for food, transport and if the shop takes only cash. The big expenses will go on the credit card.

 

[coco50]

If I use my debit card to withdraw money at the atm, I still get charged 3% though + $5 fee so it's worse than the credit card :/

Yep! You may have to absorb it this trip and when you get back, apply for a 28Degrees Mastercard. Mine sits in the dark until I need to purchase something in a foreign currency. I never, ever use an ATM overseas.

 

[travelislife]

It is never worth is from a rewards point of view. My Amex earns 2 points per $1 spent overseas. At 3% that means it costs $15 per 1000 points. Or 15 cents per point! That is massive. 'Buying' points I never like to pay over about 0.5c per point from credit card sign ups and the like. This is based off a Qantas 280k award which would mean it would cost $1400 to buy those points.

I do what many do on here. Run with a 28 degrees card which sits in a draw in Australia or is used for online OS purchases. And a Citibank Visa Debit which also sits in the drawer in Australia.

 

[travelislife]

Yep! You may have to absorb it this trip and when you get back, apply for a 28Degrees Mastercard. Mine sits in the dark until I need to purchase something in a foreign currency. I never, ever use an ATM overseas.

If you don't use an ATM how do you get cash Rob? I use them heaps, more so than when in Australia! Best exchange rate you will get is from an ATM. Then if you get a fee free card like Citibank Visa Debit it costs you nothing.

 

[coco50]

If you don't use an ATM how do you get cash Rob? I use them heaps, more so than when in Australia! Best exchange rate you will get is from an ATM. Then if you get a fee free card like Citibank Visa Debit it costs you nothing.

Buy it before I leave. I tend not to use cash here and I follow that practice as much as possible overseas.

 

[BAM1748]

Like others, I don't think it's worth it. But then I'm a cash man for many things.

Matt

 

[travelislife]

Buy it before I leave. I tend not to use cash here and I follow that practice as much as possible overseas.

Gee that's got to be a lot more expensive and less secure wouldn't it?

 

[burmans]

Like others, I don't think it's worth it. But then I'm a cash man for many things.

Matt

I'd be curious to know why so many prefer cash when in my experience cash typically has abysmal exchange rates!