Forex

Candystore

Candystore

Expert Member
Joined
Jan 23, 2009
Messages
2,992
Reaction score
943
Is it generally cheaper to acquire forex [at whatever the going rate is for commission], or to do the majority of spending via credit card for a holiday and pay the interest on the credit card?

[For purposes of this, just assume that cards are widely accepted in the destination.]
 
Take the convenience and security of a card into account and the lack of leftover "wasted" cash and I think it's hard to beat.

On top of that I would expect your average bureau de change anywhere a tourist might set foot to be a total rip off so if you do suddenly need cash overseas just withdraw it from an ATM.

Edit: also afaik you still get your interest-free period with foreign transactions.
 
  • Like
Reactions: 3WA
FNB virtual card with the correct local currency account is about the best option I could find.
 
Is this a relic of the oldendays that people want to take wads of cash to foreign destinations?
 
saor said:
Is this a relic of the oldendays that people want to take wads of cash to foreign destinations?
Click to expand...
Despite making the necessary arrangements beforehand, I have had it happen to me that my credit cards did not function abroad.
 
It varies from bank to bank.

For example, when I spend on my Standard Bank credit card, I get charged the banks rate and a fee for each transaction.

Some banks, like Capitec and some travel cards offer a “free transaction” on card swipes. It’s not free, of course nothing is, all that’s changing is their bank rate of the foreign currency conversion in the backend which includes their fees in their selling rate.
Banks obviously buy and sell currency for less and more Rands than we can. So they can factor in fees into their “bank rate”.

That said, the method used by Capitec and some global travel cards can work out cheaper for lots of transactions. Also by preloading a travel card like an FNB one you have a good way of tracking your balance and spend without constantly converting as the cards balance will be in your foreign currency once you load it.

I don’t bother I just travel with an American Express and 2 Visa cards one credit one debit. But that’s also because my company pays for most of it. I Have not had issues with them except Standard Bank who relentlessly like to block my cards for fraud despite me saying I’m traveling on the app …
 
Candystore said:
WTF? Capitec would not know forex if it hit them upside the head. They are local in every sense of the word.
Click to expand...
I don’t like Capitec but they certainly have a full forex suite. They can do pretty much what all the other banks can
 
neoprema said:
It varies from bank to bank.

For example, when I spend on my Standard Bank credit card, I get charged the banks rate and a fee for each transaction.

Some banks, like Capitec and some travel cards offer a “free transaction” on card swipes. It’s not free, of course nothing is, all that’s changing is their bank rate of the foreign currency conversion in the backend which includes their fees in their selling rate.
Banks obviously buy and sell currency for less and more Rands than we can. So they can factor in fees into their “bank rate”.

That said, the method used by Capitec and some global travel cards can work out cheaper for lots of transactions. Also by preloading a travel card like an FNB one you have a good way of tracking your balance and spend without constantly converting as the cards balance will be in your foreign currency once you load it.

I don’t bother I just travel with an American Express and 2 Visa cards one credit one debit. But that’s also because my company pays for most of it. I Have not had issues with them except Standard Bank who relentlessly like to block my cards for fraud despite me saying I’m traveling on the app …
Click to expand...
Also Capitec are the only SA bank who use mid-market rates. Everyone else charges a pretty significant spread.
 
Regarding this topic I found in my safe 1000 dollars worth of travelers checks that I didn’t exchange from a trip over 15 yrs ago.

Now that there are no forex shops around what happens to these travelers Cheques now ?
 
tRoN said:
Regarding this topic I found in my safe 1000 dollars worth of travelers checks that I didn’t exchange from a trip over 15 yrs ago.

Now that there are no forex shops around what happens to these travelers Cheques now ?
Click to expand...
I am not old enough to remember travelers cheques. Who issued yours?
 
Candystore said:
Last time I checked it was me posting the OP, so if you were uncertain you should have asked.
Click to expand...
Well, you might need to have yourself checked for schizophrenia. Either that or your ability to express yourself needs some work.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X