Thorough Explanation of Visa Exchange Rates: A Survey on the Most Cost-Effective Credit and Debit Cards for Each Currency

• This article is for reference only as it is merely a translated version of the Japanese article below.
  Visaの為替レート徹底解説｜通貨ごとにお得なクレジットカード・デビットカード調査 (Japanese version)

“Visa’s exchange rates are confusing…”

“Which credit card offers the most value when used abroad?”

For those who frequently travel internationally, these concerns may be familiar. When making payments with credit or debit cards abroad, the calculation of fees can seem somewhat complex, leading to worries about potential losses.

International brands like Visa and Mastercard set their own standard rates, and it’s crucial to note that the most advantageous brand can vary depending on the currency.

This article explains the exchange rates of Visa and other brands, detailing when rates are calculated and how payment amounts are determined. It also presents the results of an extensive investigation into which international brands offer the best value for each currency.

Those who frequently use credit or debit cards abroad or wish to avoid unnecessary fees should find this information particularly useful.

What are the exchange rates of international brands such as Visa and Mastercard?

These rates refer to the standard rates independently set by each company.

The differences between the exchange rates of international brands and market (forex) rates are as follows:

The standard rates for Visa and Mastercard are not publicly disclosed and cannot be known without calculation, whereas JCB does disclose their rates.

Standard Rate for Overseas Transactions

Reference: JCB

Although the Visa exchange rates are not readily available, there is no need to worry, as the payment amount can be calculated using a converter (automatic calculation tool), which will be explained later.

What Are Visa’s Exchange Fees?

When using Visa credit or debit cards for international travel or study abroad, payments are generally made in the local currency and are later billed in JPY after currency conversion.

The billed amount on the card in JPY includes the actual transaction amount plus a “currency exchange fee.”

This exchange fee consists of two parts: the “exchange fee” and the “overseas transaction fee.” For a detailed explanation, refer to the diagram below.

The overseas transaction fee varies depending on the international brand and card combination, and it is necessary to research if you want to know the specific fees.

For those who wish to minimize overseas transaction fees when using credit or debit cards for international travel or study, it is advisable to research and compare before issuing a card.

When are Visa’s credit card exchange rates calculated?

For those using credit or debit cards from Visa, Mastercard, or similar brands, there may be uncertainty about when exchange rates are calculated and applied.

The exchange rate determined by international brands is calculated and applied at the moment the payment data reaches the payment centers of Visa, Mastercard, etc.

It’s important to understand that the rate applied is not the one at the time of the transaction itself.

Normally, a delay of 2 to 4 days occurs between the card payment and the application of the exchange rate overseas, but this can vary further depending on the merchant and location.

Remember that for Visa, the exchange rate applied is the one effective when the usage data reaches Visa’s payment center.

How to Check and Calculate Visa Exchange Rates

The exchange rates for Visa and similar services can be checked using a converter.

This section explains how to find Visa’s exchange rates and calculate them using today’s rates.

Methods to Check and Confirm Visa’s Exchange Rates

To check and confirm Visa’s exchange rates, use Visa’s exchange rate calculator.

Here’s how to determine the exchange rate for USD to JPY:

1. Open the Exchange Rate Calculator page.
2. Click “Edit” (found on the initial screen near the section labeled ‘Bank fee’).
3. In the displayed screen, enter 1,000 in the ‘Amount’ field.
4. Choose ‘USD’ for the ‘From’ field under ‘Currencies to exchange’.
5. Select ‘JPY’ for the ‘To’ field.
6. Pick or enter the desired date for ‘Transaction date’.
7. Set the ‘Bank fee’ to 0%.Click on ‘Calculate Conversion’.

Note: If using Google Chrome, the auto-translate feature can translate the page into Japanese.

The displayed figure, such as “1 USD = XX JPY”, represents Visa’s exchange rate (the base rate).

Using a converter can provide an estimate of the amount that will be billed, so checking Visa’s exchange rates is only necessary for those who specifically want this information.

How to Calculate Payment Amounts Using Today’s Visa Exchange Rate

Calculating the payment amount using today’s Visa exchange rate can be easily done using the Exchange Rate Calculator.

The input method is the same as the one previously described in “How to Check and Confirm Visa’s Exchange Rates.”

For “Step 7: Overseas transaction fees = bank fees (Bank fee),” it’s important to note that these fees vary depending on the credit or debit card, requiring individual research.

For instance, if using the Mitsui Sumitomo Card (NL) Visa which incurs a 2.2% overseas transaction fee, the billing amount for using $1,000 would be calculated as follows:

$1,000 (amount spent) × 102.20% (including 2.2% overseas transaction fee) × Visa’s standard rate

This calculation is automatically performed when using the converter.

As mentioned previously, since the exchange rate applied is that of the day the card usage data reaches the settlement center, there may be discrepancies in the billing amount if one wishes to ascertain the exact charge.

This explanation covers the method of calculating using today’s Visa exchange rate, and those interested in knowing the exact billing amount should consider this as a reference.

Visa, Mastercard, JCB | Credit and Debit Card Exchange Rate Comparison A Thorough Investigation of the Most Cost-Effective International Brands for Each Currency

Choosing a cost-effective credit card for international payments involves selecting the right international brand and currency, as fees can vary significantly.

This time, a thorough investigation was conducted to determine the most advantageous international brand for each currency.

The results of this investigation are presented in the table below.

The following table illustrates the extent to which Visa, Mastercard, and JCB add a markup to the market rate.

Exchange Fees (Spread) When Paying in Foreign Currency and Settling in JPY

According to the survey results, the currencies for which Visa charges the lowest fees are as follows:

• Euro (EUR)
• Chinese Yuan (CNY)
• Taiwan Dollar (TWD)
• Vietnamese Dong (VND)
• Philippine Peso (PHP)
• Indonesian Rupiah (IDR)
• New Zealand Dollar (NZD)

Refer to the table above to choose the credit card that is best suited for you.

Also, consider referring to articles that introduce recommended credit and debit cards for use abroad.

• Credit card
  【Recommended for International Travel】Top 7 Credit Cards | Fee & Reward Rate Comparison
• Debit Card
  Top 3 Recommended Debit Cards for Use Abroad | Comprehensive Explanation of Fees and Benefits

Frequently Asked Questions About Visa Exchange Rates

This compilation addresses common questions concerning Visa’s exchange rates.

If you have any queries or uncertainties, please refer to this for clarification.

What is the exchange rate for the Korean won with Visa?

The Visa exchange rate for the Korean won is marked up by 0.90% above the market rate, according to recent investigations.

At the time of research, JCB offered the lowest exchange rate for the won.

How can one check Visa’s exchange rates?

Visa’s exchange rates can be verified using the Exchange Rate Calculator.

For detailed instructions, please refer to the section “How to Check and Calculate Visa Exchange Rates” in this article.

What are the fees associated with overseas cash withdrawals?

When making cash withdrawals overseas, the fees involved include foreign ATM fees and interest charges.

Typical foreign ATM fees range from free to JPY 220 per transaction, and the interest charged on cash withdrawals often stands at 18.0%.

Local ATM fees may also apply in some cases.

Comparing fees may reveal that overseas cash withdrawals are sometimes cheaper than currency exchange, so it is advisable to choose the more cost-effective option.

Summary: Compare Exchange Rates from Visa and Other Brands to Choose the Most Cost-Effective Credit Card

This article has outlined how exchange rates from Visa and other brands are calculated, when they are applied, and how payment amounts are determined. It also publishes the results of a survey on the most cost-effective international brands for each currency.

Visa determines its exchange rates daily based on market rates, which are independently set and not disclosed by Visa.

When making payments overseas with international brands like Visa or Mastercard, the exchange rate used is the one effective on the day the card usage data reaches the payment center.

Since the most cost-effective credit and debit card brands can vary by currency, please consider the results of this survey.

Understanding the exchange rates and fees related to overseas transactions can help you make the most of your shopping and dining experiences abroad.

• Credit card
  【Recommended for International Travel】Top 7 Credit Cards | Fee & Reward Rate Comparison
• Debit Card
  Top 3 Recommended Debit Cards for Use Abroad | Comprehensive Explanation of Fees and Benefits