UPDATE FEB 2012 - Click here to my comprehensive review of the Maybank Visa Infinite Welcome Package, Benefits, Priority Pass Membership Card, Starwood Privilege Card, MBB Premier Customer Service and Overseas Transaction Rates.
Updated 7 January 2012
In my initial review of the Maybank Visa Infinite titled Maybank Visa Infinite - The Best Credit Card for Overseas (click here to read it), I mentioned the followings:
Well, I have done several overseas transactions since I received my Maybank issued Visa Infinite credit card, and here are my comments on 2 transactions:
Transaction Date: 31 December 2011
Posting Date: 1 January 2012
Online Transaction Amount: USD610.00
Amount Billed by Maybank: RM1959.46
Therefore conversion rate = 1959.46/610 = 3.2122
Based on Visa International Currency Converter (click here), the exchange rate for USD to MYR on 1st January was 3.1725.
Therefore, as you can observe above, with the use of credit card, we are charged Overseas Admin Fee by the bank/card issuer when we do overseas transactions.
Let us see how much was the credit card overseas exchange fee in terms of percentage for the above online transaction:
MBB Overseas Admin Fee = (3.2122-3.1725)/3.1725 = 0.012513 or 1.251% which is much more than the supposedly 0.5% Admin Fee chargeable by MBB.
But the good news is, since I used my Maybank Visa Infnite, I earned 5X Treats Points :)
Based on 10,000 Treats Points to redeem RM50 cash voucher, it works out to be 2.5% returns.
So from above transaction, I earned 1959 x 5 = 9795 Treats Points or equivalent to approximately RM1959 x 2.5% = RM48.98 (in terms of cash vouchers).
So deduct this so call rebate, my actual transacted cost comes out to be RM1959.46-RM48.98 = RM1910.40.
And therefore the Foreign Currency Exchange Rate from USD to MYR comes out to be approximately 3.1318 (1910.40/610), which is lower than Visa's Exchange Rate on 1st January 2012 :)
Just for info, I also bought a bank draft for my son in USD on 30th December 2011 and the rate offered to me was 3.20 (which is less than the coversion rate compared to the rate billed to me by Maybank with my credit card at 3.2122 mentioned above).
2nd Transaction was for a face to face transaction in Singapore.
Transaction Date: 22 December 2011
Posting Date: 23 December 2012
Face to face Transaction Amount: SGD560
Amount Billed by Maybank: RM1,395.92
Therefore conversion rate = 1395.92/560 = 2.4927
Based on Visa International Currency Converter (click here), the exchange rate for SGD to MYR on 23rd December 2011 was 2.46187
Once again, you can observe with the use of credit card, we are charged Overseas Admin Fee by the bank/card issuer when we do overseas transactions.
So, once again let us work out the Exchange Fee in terms of percentage for the above transaction in Singapore:
MBB Overseas Admin Fee = (2.4927-2.46187)/2.46187 = 0.012523 or 1.25% which is much more than the supposedly 0.5% Admin Fee chargeable by MBB.
Once again, from the above transaction, I earned 1395 x 5 = 6975 Treats Points or equivalent to approximately RM1,395 x 2.5% = RM34.875 (in terms of cash vouchers).
So deduct this so call rebate, my actual transacted cost comes out to be RM1,395.92 - RM34.875 = RM1,361.045.
And therefore the Foreign Currency Exchange Rate from USD to MYR comes out to be 2.43 (1361.04/560), which is lower than Visa's Exchange Rate of 2.46187 on 23rd December 2011 :)
Most of the time we will end up paying more with credit card issuers' overseas Admin Fee, but with the Maybank Visa Infinite, we can actually earn a little bit with our overseas transactions.
From the above, I have shown you that the Maybank Visa Infinite is indeed fantastic and definitely currently the best credit card for overseas transactions. This is because if we were to consider the 5X Treats Points earned, we are actually forking out less than the actual market foreign exchange/conversion rate.
[UPDATE 7 January 2012] - Now I know why the overseas conversion rate is not 0.5% for the Maybank Visa Infinite. Below is what is stated behind my Maybank Visa Infinite Statement -
"Foreign charges applies a conversion factor of 2.5% to the converted amount and charges that is made in a foreign currency other than US Dollars will be first converted into US Dollars before being converted into Ringgit Malaysia"
WTF, no wonder we are offered 5X Treats Points with the MBB VI. But, how come my about transactions came out to be less than 2.5% for overseas fee at approximately 1.25%???
And for those with Maybankard 2 Card American Express credit card, this is what is stated behind my onthly statement -
"Foreign Charges converted by AMEX apply a coversion factor of 2.5% to the converted amount plus 0.5% administration cost imposed by Maybank"
OTHER RELATED POSTS
Click here to read my 1st review on the Maybank Visa Infinite titled The Best Credit Card for Overseas.
Click here to read my follow up review on the Maybank Visa Infinite titled 'The' Card To Go Around The World With.
Click here to read my article titled Maybank Premier Credit Card Customer Service where I mentioned that I am very happy with the level of service provided to me.