AppleCard Foreign Exchange Rate

so, I did continue to use the Apple Card to notice something weird: in some shops I was charged pretty much the internet exchange rate (so I wasn’t charged extra), others were much higher than that exchange rate - and it happened on the same day. It really puzzles me. I will give it a few more try before I switch to Visa, as getting 2% cash back but being overcharged in the exchange rate isn’t worth it. Anyone any hints?

I’m sorry but Jeff’s strategy is not advisable. It’s actually a very bad idea. You should always pay in foreign currency and let your bank handle the settled exchange rate. The transacting bank in the foreign country has the power to establish what they pay for American dollars if you chose USD on the machine! An even worse idea is to negotiate with the vendor what they pay for USD and then have them plug that in. Local places here in Guatemala pay 7Qs for 1 usd. The settled exhange rate is 7.86…. That’s a 11% haircut. Then they plug that in to the machine and you will get hit by another 3% potentially for paying in USD overseas. This happened to me in Hong Kong when I hit in USD that cost me $60 dollars on a $2000 hotel bill.

I am currently based in Italy and was mostly using my Amazon Prime signature Visa, which only gives a 1% cashback. Then considering that Apple Card gives 2% I switched to it. Tonight I realized that 1000€ charge became 1097$, which was 10$ more than the exchange rate… this will make me switch back to my Amazon Visa, whose exchange rate was totally comparable to the official exchange rate.

Apple/Mastercard… adjust your number!

That’s the difference between Visa and Mastercard. Apple and Goldman Sachs have nothing to do your issue.

Those fees are controlled by MasterCard. Foreign transaction fees would be on top of the exchange rate. Most merchants can do sales in dollars. When I travel, I request the price in dollars and if negotiable work from there. Exchange rate is the exchange rate and is either settled by the payment network or the merchant.

Many Visa cards have a foreign transaction fee (specially those with no annual fee) and that’s in addition to the Visa currency exchange fee. You really need to examine each card on an individual basis.

It’s confusing and you’d almost think that banks like it that way. Oops, did I say that out loud? I guess my senior filter didn’t kick in. 😁😁

You may want to contact an Apple Card Specialist at Goldman Sachs Bank. I’d call on the phone and you may have to ask for a supervisor for a more complete explanation.

CONTACTING — Goldman Sachs Bank 

• Using Messages; chat with an Apple Card specialist

• Call toll-free at 877-255-5923

• Write to: Goldman Sachs Bank, Lockbox 6112, P.O. Box 7247, Philadelphia, PA 19170-6112.

if I recall correctly, the network is MasterCard International and they handle international transactions and do the exchange rate. If one company offers a different exchange rate than another, that’s a reason to ask the merchant which network/card has the better rate. Again, I usually do the transaction in US dollars, rather than the local currency that will need to go through the exchange process and rate fees.

Just remember, foreign transaction fees would normally be on top of exchange rate.

Exchange rates vary from country to country. Sometimes American Express has the best rate, another time it may be Visa and again, frequently it will be MasterCard. This is nothing unique to Apple Card or MasterCard. Chalk it up to inexperience and not asking before you travel to another country. Merchants are very familiar with the daily exchange rate and many times their conversion to US dollars is better than Visa, MC or AmEx. Just sayin’

💸📈 Exactly. For instant, I am in UK and it is 1.22 USD / 1 GBP as of now. I checked the transaction in my card, and the exchange rate I got charged is 1.26 USD. I noticed the rate used to be closer than the actual or the same as last year. ☹️ But I know some banks like BoA charges for foreign trasnacton fee a lot!

Exactly! that's why I found it very strange. I also thought it would apply a different exchange rate based on the amount of transaction... the lower amount was precisely the internet exchange, whereas the higher amount spent the higher exchange rate!

I never noticed it before… I guess the very round figure was illuminating.

switching back to visa i guess!

Are you paying in local currency or letting Mastercard to the exchange rate?

Always paying in local currency.

The exchange rate has been randomly good (exactly what you see online) or bad... and didn't understand why. from shop to show was very different on the same day.