Which multicurrency debit card when holding USD?

[aster1]

Many years ago I put most savings in USD and want to use a multicurrency debit card for overseas spend.

The problem is that when transacting in a non-supported currency the card I have will only take money from the SGD account, and deny the transaction if I have enough USD but not enough SGD.

Is there any similar multicurrency account that will simply use the USD I have instead of denying the transaction due to lack of SGD?

 

[bigrooster]

If your main use case is overseas spending (online or physical), you may want to explore Transferwise (now renamed Wise).

From their website

Always pay in the local currency.
If you’re shopping online, always choose to pay in the currency of the country you’re buying from. If you don’t have it in your account, the card will automatically convert to it from the balance that’s cheapest for you. You’ll avoid Dynamic Currency Conversion fees.

Now the initial launch in Singapore is over, so need to pay S$10 for the debit card. Online/contactless payment/withdrawal (not in SG), you can find out more from their website to see if it suits your needs.

 

[BBCWatcher]

The problem is that when transacting in a non-supported currency the card I have will only take money from the SGD account, and deny the transaction if I have enough USD but not enough SGD.

Is that an actual problem, though? If the card operator (in Singapore) doesn't decline the transaction, you're instead going to get whacked with a mediocre exchange rate marked up significantly with a foreign transaction fee (since that's what banks in Singapore specialize in ). Wouldn't that be extra bad?

 

[solitudinal]

Many years ago I put most savings in USD and want to use a multicurrency debit card for overseas spend.

The problem is that when transacting in a non-supported currency the card I have will only take money from the SGD account, and deny the transaction if I have enough USD but not enough SGD.

Is there any similar multicurrency account that will simply use the USD I have instead of denying the transaction due to lack of SGD?

How about YouTrip? You are now able to top-up directly using PayNow. PM me if you'd like a referral code for YouTrip

 

[aster1]

you may want to explore Transferwise (now renamed Wise).

Thanks, definitely looks like a contender and something similar to Revolut, but with possibly better customer support?

Is that an actual problem, though? If the card operator (in Singapore) doesn't decline the transaction, you're instead going to get whacked with a mediocre exchange rate marked up significantly with a foreign transaction fee (since that's what banks in Singapore specialize in ). Wouldn't that be extra bad?

Well I was hoping for an account that would simply give me the Mastercard rate to convert from foreign currency to USD when making overseas purchases. But as you mentioned banks are often trying to rake in more fees, so I'm trying to steer clear from those that either convert to SGD first and then to USD (double-whammy) or charge % on top of the Mastercard rate.

How about YouTrip? You are now able to top-up directly using PayNow. PM me if you'd like a referral code for YouTrip

Good option when I return to SG, but being overseas for a while I need something that I can get in the EU so that I get get this working first.

Guys, because I hold USD and making transfers to these virtual banks could be expensive - are there any that have no or low fees for debit card topup?

 

[BBCWatcher]

Thanks, definitely looks like a contender and something similar to Revolut, but with possibly better customer support?

Check the fees, though. Somehow you'd have to get U.S. dollars to YouTrip then convert to euro (for example) either before spending or instantaneously while spending. That's not going to be free.

Well I was hoping for an account that would simply give me the Mastercard rate to convert from foreign currency to USD when making overseas purchases. But as you mentioned banks are often trying to rake in more fees, so I'm trying to steer clear from those that either convert to SGD first and then to USD (double-whammy) or charge % on top of the Mastercard rate.

Good option when I return to SG, but being overseas for a while I need something that I can get in the EU so that I get get this working first.

The only reliable way I know of to accomplish what you describe is to get a U.S. issued debit card with zero foreign transaction fees, and to get the U.S. dollars transferred (via DBS's USA Remit for example, which is free) to a U.S. bank or U.S. credit union account. But none of that is very easy from the European Union without U.S. citizenship or at least a U.S. Social Security Number (SSN)....

However, if you happen to live in a country with the ability to open a Schwab brokerage account -- there are at least some EU countries that qualify -- then I think you can pull this off, although it'll be a Schwab Visa debit card instead of Mastercard. Schwab's Visa debit card offers zero foreign transaction fees and will even rebate local ATM operator fees worldwide, so it's quite a lovely card. And obviously Schwab accepts U.S. dollars. You can use DBS USA Remit (if the U.S. dollars are at DBS or POSB) to get the U.S. dollars to Schwab free of charge. Just follow the "Instructions to Transfer Money to Your Schwab Account" document that Schwab publishes. The "landing" account for U.S. dollar deposits to Schwab is at Citibank in New York. (N.B. If DBS USA Remit wants the ABA routing number instead of the SWIFT code, follow Schwab's deposit instructions for "within the U.S.")

The only "gotcha" is that Schwab needs a minimum of US$25,000 to open the account, but as far as I know there's no requirement to maintain this minimum. There is no obligation to invest in U.S. securities, although be advised that cash, in any currencies, held at a U.S. broker (such as this one) is U.S. estate taxable. For non-U.S. persons the U.S. estate tax exemption is US$60,000, meaning if the total fair market value of your U.S. estate taxable assets is US$60,000 on the day you die, there will be no U.S. estate tax due.

Have you already checked the European "FinTechs," such as N26?

 

[BBCWatcher]

Where are these U.S. dollars held now?

 

[CrashWire]

Good option when I return to SG, but being overseas for a while I need something that I can get in the EU so that I get get this working first.

Guys, because I hold USD and making transfers to these virtual banks could be expensive - are there any that have no or low fees for debit card topup?

Revolut accounts from some countries around the EU allow topups to USD. If they're currently in a Singapore-domiciled multi-currency account, you should be able to use your Singapore debit card to topup USD without any fees.

 

[aster1]

Have you already checked the European "FinTechs," such as N26?

Interesting that you mentioned them because I've been giving them a closer look for some time now. They appear very good and don't charge any fees over MC/Visa FX rates... but then Travelwise (Wise) and Revolut are closer to the mid-market rates so that is quite enticing.

Technically I could transfer USD to Wise/Revolut and just convert to other currencies at great rates, no?

Where are these U.S. dollars held now?

All in Singapore with a multicurrency debit card.

Revolut accounts from some countries around the EU allow topups to USD. If they're currently in a Singapore-domiciled multi-currency account, you should be able to use your Singapore debit card to topup USD without any fees.

They are so this looks like a good option. But maybe Revolut/Wise also have local account in SG (denominated in USD) for deposits? I take it neither of them take PayPal?

 

[celtosaxon]

Is there a reason you prefer to hold USD? Is some of this intended for investments? Do you expect to have future USD payables?

I usually try to minimize currency risk when it comes to matching my current assets against future liabilities. And if I were in your situation, I would want to get a local debit card in the country or countries where I am incurring expenses, then use Wise to make transfers over time (dollar cost average) so as to minimize the risk of being forced to convert when the rates are not in my favor.

 

[BBCWatcher]

Technically I could transfer USD to Wise/Revolut and just convert to other currencies at great rates, no?

All in Singapore with a multicurrency debit card.

They are so this looks like a good option. But maybe Revolut/Wise also have local account in SG (denominated in USD) for deposits? I take it neither of them take PayPal?

I don’t think anybody really is going to ingest U.S. dollars in Singapore. The U.S. dollar clearing system in Singapore is very limited.

If for example these U.S. dollars are sitting at DBS/POSB then you can use DBS USA Remit to transfer the U.S. dollars free of charge to practically any U.S. bank or credit union account, including Schwab’s and probably Wise’s. Revolut and N26, not sure.

For future reference, ICBC Singapore offers a credit card called the ICBC Global Travel Mastercard. When you use that card overseas it’ll end up converting to Singapore dollars at about 50 basis points better than the Mastercard rate. That’s because it’s a 2.5% foreign transaction fee credit card with a 3.0% rebate. You don’t have to sit on any buckets of other currencies or even think about it; it just works with a very reasonable outcome. And it’s a credit card which is a bit safer than a debit card.

 

[stiwipl]

How about USD$aver account with Mastercard debit card from SC ? However it is not clear as to how non USD transactions are settled by the bank?

44. Currency of transactions on USD High debit card
44.1 If any transaction made using USD High debit card is not denominated in USD, we convert the amount of the transaction to USD in accordance with our usual practice and our banking agreement.

Would the usual practice be non-USD to SGD conversion first before settling USD?

"MasterCard transactions incurred with merchants based outside of Singapore are subject to a charge of 1% of the transaction as imposed by MasterCard International on the Bank"

Is this even a correct wording? That would also mean that any USD transactions outside of SG would incur 1% even when no conversion happens? I think the wording should be in case of non USD transactions, 1% MC conversion fee is added which is a normal practice for pretty much all MC cards around the world.