What is the MasterCard Exchange Rate
If you’re overseas, in the United States or making a purchase online, your debit or credit card comes in handy as it will handle all the calculations for you. As one of the two major credit card providers, Mastercard is accepted in most places around the world, meaning you just have to use it as you normally would, and it will convert the currency automatically. But, what many people may not know is Mastercard has its own exchange rate, just like Visa, the bank and other providers of currency exchange in Canada.
Knowing what the Mastercard exchange rate is can help you determine exactly how much you’re spending, and whether or not it’s worth it. If your Mastercard is tied to your Canadian bank account, and you use it in the United States, you aren’t getting the base exchange rate, or even the one your bank provides. The Mastercard exchange rate is all it’s own, and even if it’s a percent or two different, it can have a huge impact. Knowing these rates and other fees that come with using your Mastercard internationally is vital, as you can use the information to make sure you’re getting a fair exchange rate and letting you know exactly how much you’re spending.
Exchanging Regularly? Save with Knightsbridge Foreign Exchange
Banks and other providers of currency exchange in Canada add large markups to their exchange rates, with the banks adding about 3% to theirs. But, there are other options out there for.
Knightsbridge Foreign Exchange provides the best currency exchange rates, matched with the best exchange service. We operate entirely online, making it fast, easy and convenient for you. We work with the all the leading banks in Canada, meaning we can send your money wherever you need.
If you need cash for a vacation, or a big international purchase, we’ve got you covered. And, if you need to send money to someone overseas, we can do that too. There are no crazy fees for transferring with Knightsbridge FX, and you still get the best currency exchange rates in Canada as you would for a regular exchange.
Next time you need to exchange or transfer money, check out all we have to offer at Knightsbridge FX and see why we’re perfect for you!
Continue reading to learn more about the Mastercard exchange rate and how to find it!
Mastercard Exchange Rate Calculator
With five key pieces of information, you can find out exactly what the Mastercard exchange rate is for a transaction you want to make today, or any one you’ve previously made with the Mastercard exchange rate calculator.
Mastercard Exchange Rate Calculator key information includes:
- Currency of the transaction
- Amount of the transaction
- Currency of your Mastercard
- Date of the Transaction
- Bank transaction fee (if applicable)
With this information, the Mastercard exchange rate calculator can you what the exchange was/is that day and how much it would cost overall. You should always keep in mind that the rate you get for today is for the current time you’re checking it and could change by the hour or the day. Also, it won’t include any unexpected bank fees, so if you make your transaction and it isn’t what you got from the Mastercard exchange rate calculator, be sure to check if there were any bank fees you didn’t know about. You can check your particular bank account’s terms and conditions to see if there are any fees associated with the transaction you’d like to make, and how you could possible avoid them.
Once you’ve gotten the Mastercard exchange rate, you can compare it to the interbank rate, also know as the mid-market rate, to see what markup they’ve added. The mid-market rate is the true base exchange rate for any currency, and is what financial institutions like Mastercard, banks and us at Knightsbridge Foreign Exchange use to determine what our rates will be.
If you don’t know what the mid-market rate is, as just noted it’s the real, true, baseline exchange rate for every currency. It’s the one you’ll see on Google and in the news, and what major global banks use to sell with each other.
When it comes to exchange customers, banks and other financial institutions add a markup to the mid-market rate as a way to make money. Depending on the particular company, they may need to add a higher markup to compensate for high expenses, such as airport brokers, or may just want to charge more. At Knightsbridge Foreign Exchange, we add a minimal markup to our rates to provide our customers with the best currency exchange rates in Canada.
Markups allow providers of currency exchange in Canada to make money, and for some they use it to deceive their customers into thinking they’re getting a better deal than they are. Without knowing about the mid-market rate, you don’t know any better on what a fair exchange rate is or not. Thankfully, finding the mid-market rate is as easy as a quick Google search, and you can use it to see the value in using Knightsbridge Foreign Exchange for all your currency exchange in Canada needs!
When is the Mastercard Exchange Rate Used?
While most times the Mastercard exchange rate will be used for the currency exchange on your card, there are times when the Mastercard exchange rate won’t be used. This is called dynamic currency conversation. It occurs when you pay in your own currency, and it is converted by the merchant or ATM operator, rather than by Mastercard. Sometimes when you’re abroad you’ll be asked if you want to pay in your own currency. The benefit is you get to see how much you pay in your currency instantly, but there can be added fees you don’t know about that actually make it more expensive. If you ever come across a situation like this, just know that the Mastercard rate won’t be applicable, leaving you subject to an unknown exchange rate.
There are variety of possible fees that can come with using your Mastercard abroad or online for international payments. Make sure you’ve gone through you bank account’s full agreement to confirm exactly what charges may be applicable, so you know exactly what fees you may be liable for. If you run into DCC, remember you won’t be getting the Mastercard exchange rate.
To play it safe, you can always come to Knightsbridge Foreign Exchange for big international purchases or currency exchange in Canada. We’ll provide you with the best currency exchange rates in Canada, and make you currency exchange process as easy as possible.