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I'm trying to order something from an online Canadian store that costs about $194 USD. While trying to pay with a Mastercard, a message popped up saying I would be charged in Canadian funds at the current CAD/USD exchange rate and that I would also be charged a 2% fee to cover bank fees. They suggest paying with Visa or American Express to avoid high fees.
This is confusing to me. Is it saying that if I use a Mastercard I will be charged $254 CAD, but if I use Visa or American Express I will be charged $194 USD? Is there any difference? I don't really care about the 2% fee at this point. Isn't $254 CAD the same as $194 USD? If it is, does it matter that I use a Mastercard?
When I entered in a Visa card number, the message about Canadian funds didn't appear. But I can't pay with that card, it's not mine.
I'm trying to order something from an online Canadian store that costs about $194 USD. While trying to pay with a Mastercard, a message popped up saying I would be charged in Canadian funds at the current CAD/USD exchange rate and that I would also be charged a 2% fee to cover bank fees. They suggest paying with Visa or American Express to avoid high fees.
This is confusing to me. Is it saying that if I use a Mastercard I will be charged $254 CAD, but if I use Visa or American Express I will be charged $194 USD? Is there any difference? I don't really care about the 2% fee at this point. Isn't $254 CAD the same as $194 USD? If it is, does it matter that I use a Mastercard?
When I entered in a Visa card number, the message about Canadian funds didn't appear. But I can't pay with that card, it's not mine.
I believe what they are saying is that with mastercard, you'll be charged $254 Canadian, plus 2%, so $259 Canadian ballpark. Which is about $197 US.
Whereas with Visa, you'd be charged in USD for $194 and no foreign currency fee.
the issue.. If you pay with the Mastercard, you might get charged a foreign transaction fee from your bank as well. So, that could be another 2 to 3%.. So, paying with a Mastercard might wind up being closer to $200 USD.
So in general you want to pay with a card with no foreign transaction fees first of all. Next you want to pay in the store's local currency, so CAD. Lastly take into consideration of rewards/cashback card.
I spoke to someone at the store and they said the prices are all the same, I would just be paying an extra 2% fee for paying with a Mastercard. Since the fee isn't that big of a deal considering how much I'm already saving, I just payed with a Mastercard since I don't have any other credit cards.
I just thought the wording of those pop up messages were confusing and stupid. But their entire website is stupid. They have the option to order and pay online, but then they insist on the customer placing a phone order. Then the only way they will ship merchandise is by sending a shipping policy email that I must respond to with, "I Agree." There was other weird stuff, but I won't get into that.
Strange company. They're totally legitimate, but very odd. The guy I spoke to on the phone is in charge there and he was overly happy, friendly and chatty. That's not bad, but something I'm not used to. Maybe it's a Canadian thing?
So in general you want to pay with a card with no foreign transaction fees first of all. Next you want to pay in the store's local currency, so CAD. Lastly take into consideration of rewards/cashback card.
Correct! Never let them convert for you, it will cost you 2_3%..it is a ripoff. Paying foreign transaction fees is a ripoff, too..I live in Thailand, and when I use my credit card, they will sometimes try to charge me in Dollars and to newbies it gives them piece of mind..I think it is called dynamic currency conversion...but is a total ripoff...you can go to XE and see what the current rate is...what visa bills you will be withing a half percent or less of that, so the spread is very narrow..and it will reflect the rate at settlement, which will be a few days later.
Some of the Chinese companies use CAD..fine, pay in CAD, let Visa deal with it.
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