Avoiding foreign transaction fees on CC

[Kayeesha]

ICBC cards are known not to be able to be linked to Amaze since Day 1

Noted with thanks.

Can use Amaze for anything be it locally/overseas, online/offline.

Main point is can earn points/cashback on the linked card e.g. 10x points on Citi rewards mastercard, and no foreign currency fee or cross border fee. The 0.5%/1% Amaze rebate is a bonus if meet the $1500 quarterly spend.

Typically should choose to pay in local currency to avoid dcc.

The only Mastercard credit card I have is the OCBC Titanium Rewards which offers OCBC$ in blocks of $5 (not worth considering).

Nevertheless, are you saying linking it to the Amaze card and paying in USD/GBP for my iHerb/Myprotein purchases is cheaper than converting to SGD and charging to my HSBC VISA credit card which gives about 1.5% (1.5% + 1% - 1% DCC fee) net cashback on SGD transactions?

 

[BBCWatcher]

Nevertheless, are you saying linking it to the Amaze card and paying in USD/GBP for my iHerb/Myprotein purchases is cheaper than converting to SGD and charging to my HSBC VISA credit card which gives about 1.5% (1.5% + 1% - 1% DCC fee) net cashback on SGD transactions?

The true cost of your HSBC Visa credit card transaction should include the markup that the vendor charges for "DCC" (Dynamic Currency Conversion) compared to the Mastercard network rate if you're going to allow the merchant to charge your card in SGD. For example, if the merchant is charging you 2% more for USD or GBP compared to what the Mastercard (or Visa) network charges you then you would add that 2% to your cost calculation.

Let me take a quick look at iHerb... OK, they have an item that costs US$9.70 that they'll also sell at S$13.95. That's an exchange rate of about 1.438144. According to Mastercard's Web site they'll charge you S$13.54 for the same item (to an Amaze card, charged as I write this), an exchange rate of 1.396008. Thus iHerb is adding a 3.0% markup over the Mastercard rate. That's a lot! If you were to charge this item to your HSBC card in U.S. dollars you'd actually be better off (iHerb's markup is that bad), although you'd do even better with an Amaze card (charged in U.S. dollars, of course).

 

[luvpraline]

The true cost of your HSBC Visa credit card transaction should include the markup that the vendor charges for "DCC" (Dynamic Currency Conversion) compared to the Mastercard network rate if you're going to allow the merchant to charge your card in SGD. For example, if the merchant is charging you 2% more for USD or GBP compared to what the Mastercard (or Visa) network charges you then you would add that 2% to your cost calculation.

Let me take a quick look at iHerb... OK, they have an item that costs US$9.70 that they'll also sell at S$13.95. That's an exchange rate of about 1.438144. According to Mastercard's Web site they'll charge you S$13.54 for the same item (to an Amaze card, charged as I write this), an exchange rate of 1.396008. Thus iHerb is adding a 3.0% markup over the Mastercard rate. That's a lot! If you were to charge this item to your HSBC card in U.S. dollars you'd actually be better off (iHerb's markup is that bad), although you'd do even better with an Amaze card (charged in U.S. dollars, of course).

Woah i didn't know iherb's markup is so high.. so do you mean that even if the Mastercard i have on hand has negligible rewards... if i were to link it to Amaze and pay in USD.. i would be saving 3% (if that is the markup added by iherb)? The card i usually use gives 1.6% cashback but it's a Visa

 

[Trazora]

Woah i didn't know iherb's markup is so high.. so do you mean that even if the Mastercard i have on hand has negligible rewards... if i were to link it to Amaze and pay in USD.. i would be saving 3% (if that is the markup added by iherb)? The card i usually use gives 1.6% cashback but it's a Visa

yes. best if can apply for a mastercard with better rewards

 

[Kayeesha]

The true cost of your HSBC Visa credit card transaction should include the markup that the vendor charges for "DCC" (Dynamic Currency Conversion) compared to the Mastercard network rate if you're going to allow the merchant to charge your card in SGD. For example, if the merchant is charging you 2% more for USD or GBP compared to what the Mastercard (or Visa) network charges you then you would add that 2% to your cost calculation.

Let me take a quick look at iHerb... OK, they have an item that costs US$9.70 that they'll also sell at S$13.95. That's an exchange rate of about 1.438144. According to Mastercard's Web site they'll charge you S$13.54 for the same item (to an Amaze card, charged as I write this), an exchange rate of 1.396008. Thus iHerb is adding a 3.0% markup over the Mastercard rate. That's a lot! If you were to charge this item to your HSBC card in U.S. dollars you'd actually be better off (iHerb's markup is that bad), although you'd do even better with an Amaze card (charged in U.S. dollars, of course).

Many thanks BBCWatcher. I appreciate you making the effort and taking the time to illustrate with an example.

I shall download the Instarem app and link my OCBC credit card and UOB debit card to it.

One more thing, I use my UOB debit card to purchase petrol at SPC. Will I still be able to get the same discount using the Amaze card after selecting the UOB debit card for payment? I usually have to present the cards (UOB and SPC&U card) and the cashier will process the discount accordingly. So, how will it work if I produce the Amaze card?

 

[Trazora]

Many thanks BBCWatcher. I appreciate you making the effort and taking the time to illustrate with an example.

I shall download the Instarem app and link my OCBC credit card and UOB debit card to it.

One more thing, I use my UOB debit card to purchase petrol at SPC. Will I still be able to get the same discount using the Amaze card after selecting the UOB debit card for payment? I usually have to present the cards (UOB and SPC&U card) and the cashier will process the discount accordingly. So, how will it work if I produce the Amaze card?

Amaze will not be recognized for merchant specific benefits

 

[Kayeesha]

Amaze will not be recognized for merchant specific benefits

I see …. Sorry but may I confirm that even if I show that the underlying (linked) card is a UOB card, SPC will not recognize it and therefore not reward me with the discount?

 

[BBCWatcher]

Generally you will only qualify for a specific merchant’s card-related promotion if you actually use that card to make payment. So if the merchant advertises “use your UOB card to get 10% off petrol,” and you use a different card (such as Amaze), you won’t qualify. For these purposes it doesn’t matter if your Amaze card is linked to your UOB card.

There are possible rare exceptions. If the merchant says “show us your UOB card, and we’ll give you 10% off,” and then the merchant subtracts 10% from the price before charging your Amaze card, then that works. Except that’s not how these merchant/card issuer promotions tend to work, so you’d be very lucky if you got that deal. The only time that’s ever happened for me is when I visited a restaurant that offered a discount when you use a particular bank’s card to settle the bill, but for some weird reason the restaurant’s card payment terminal didn’t accept the card after a few tries. Then the restaurant might say, “Got another card?” and still honor the discount, at the point of sale. That’s accidental good fortune, though, and nothing you can rely on.

 

[Kayeesha]

Generally you will only qualify for a specific merchant’s card-related promotion if you actually use that card to make payment. So if the merchant advertises “use your UOB card to get 10% off petrol,” and you use a different card (such as Amaze), you won’t qualify. For these purposes it doesn’t matter if your Amaze card is linked to your UOB card.

There are possible rare exceptions. If the merchant says “show us your UOB card, and we’ll give you 10% off,” and then the merchant subtracts 10% from the price before charging your Amaze card, then that works. Except that’s not how these merchant/card issuer promotions tend to work, so you’d be very lucky if you got that deal. The only time that’s ever happened for me is when I visited a restaurant that offered a discount when you use a particular bank’s card to settle the bill, but for some weird reason the restaurant’s card payment terminal didn’t accept the card after a few tries. Then the restaurant might say, “Got another card?” and still honor the discount, at the point of sale. That’s accidental good fortune, though, and nothing you can rely on.

Understood. Thank you for the detailed explanation.

 

[Meemoosaa]

I just got the YouTrip card as recommended.

I'm trying to figure out the difference between YouTrip and Amaze now...

Am I correct that YouTrip only allows you to top-up the currency but Amaze allows one to link an existing credit card ?

 

[Trazora]

I just got the YouTrip card as recommended.

I'm trying to figure out the difference between YouTrip and Amaze now...

Am I correct that YouTrip only allows you to top-up the currency but Amaze allows one to link an existing credit card ?

yes youtrip need topup, no rebate/point fir topup. Amaze use linked mastercard cc, continue get rebate/point of the linked cc.

 

[Kayeesha]

Let me take a quick look at iHerb... OK, they have an item that costs US$9.70 that they'll also sell at S$13.95. That's an exchange rate of about 1.438144. According to Mastercard's Web site they'll charge you S$13.54 for the same item (to an Amaze card, charged as I write this), an exchange rate of 1.396008. Thus iHerb is adding a 3.0% markup over the Mastercard rate. That's a lot! If you were to charge this item to your HSBC card in U.S. dollars you'd actually be better off (iHerb's markup is that bad), although you'd do even better with an Amaze card (charged in U.S. dollars, of course).

Hi BBCWatcher, can you give me the link to Mastercard’s website that shows how much they will charge for a transaction charged to the Amaze card, please? I have an order on iHerb totalling US$149.71 which also costs S$215.29. I’d now like to know how much in SGD this order will cost me if paid it in USD using the Amaze card. Thanking you in advance.

 

[CrashWire]

Hi BBCWatcher, can you give me the link to Mastercard’s website that shows how much they will charge for a transaction charged to the Amaze card, please?

https://www.mastercard.com/global/en/personal/get-support/convert-currency.html

 

[Trazora]

Hi BBCWatcher, can you give me the link to Mastercard’s website that shows how much they will charge for a transaction charged to the Amaze card, please? I have an order on iHerb totalling US$149.71 which also costs S$215.29. I’d now like to know how much in SGD this order will cost me if paid it in USD using the Amaze card. Thanking you in advance.

btw Amaze is using its own rate, not using mastercard rates

 

[BBCWatcher]

btw Amaze is using its own rate, not using mastercard rates

Fair enough.

Kayeesha, you really don't have to think about this much. iHerb seems to be marking up the cost of Singapore dollars (from U.S. dollars) by about 3.0% compared to the Mastercard rate. You've never going to overcome that markup with your card choice. Simple rule: ALWAYS charge in the local currency of the merchant. ALWAYS decline "dynamic currency conversion" such as what iHerb offers.

 

[silverbomb]

Hi BBCWatcher, can you give me the link to Mastercard’s website that shows how much they will charge for a transaction charged to the Amaze card, please? I have an order on iHerb totalling US$149.71 which also costs S$215.29. I’d now like to know how much in SGD this order will cost me if paid it in USD using the Amaze card. Thanking you in advance.

Amaze uses their own internal rates not MasterCard rates

 

[Kayeesha]

https://www.mastercard.com/global/en/personal/get-support/convert-currency.html

btw Amaze is using its own rate, not using mastercard rates

Fair enough.

Kayeesha, you really don't have to think about this much. iHerb seems to be marking up the cost of Singapore dollars (from U.S. dollars) by about 3.0% compared to the Mastercard rate. You've never going to overcome that markup with your card choice. Simple rule: ALWAYS charge in the local currency of the merchant. ALWAYS decline "dynamic currency conversion" such as what iHerb offers.

Amaze uses their own internal rates not MasterCard rates

Many thanks CrashWire, Trazora, BBCWatcher and silverbomb for your replies.

I thought I read somewhere about Amaze FX rate being higher than spot and Mastercard rates and diverging lately for a few currencies but wasn’t too sure.

I will, however, use your simple rule, BBCWatcher, for now.

Btw, I was also looking at a product on MyProtein at £39.99. Guess what it is in SGD? ….. S$222.99!

I’m so glad I came across this thread and thank you all for being most patient and helpful.

 

[BBCWatcher]

Btw, I was also looking at a product on MyProtein at £39.99. Guess what it is in SGD? ….. S$222.99!

Seems like a bad exchange rate.

 

[Kayeesha]

Does anyone know why some products on Amazon.sg requires you to join Prime in order to be able to purchase them?

I tried going to Amazon.us but they don’t deliver to Singapore. Besides it is also more expensive which I thought was odd since the product is produced in the US.

 

[CrashWire]

Does anyone know why some products on Amazon.sg requires you to join Prime in order to be able to purchase them?

They want you to "buy in" to their brand. Once you pay $2.99 every month, you're more likely to use Amazon for everything.