Thread: what goes up?
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Old April 6th, 2010, 15:52   #21
Rugger_can's Avatar
Join Date: Dec 2001
Location: Downtown Ottawa
Originally Posted by Drake View Post
Credit Cards have bad conversion rates, too (arguably worse than PayPal sometimes): they'll average the monthly conversion rate to calculate yours. So if you buy something at the start of the month and then the CND tanks the rest of the month, you get hit with awful conversion.

PayPal moves slowly and have a built-in conversion fee (as do credit cards) but at least you know the exact conversion you're getting the day of your purchase.
That only applies to interest accumulating credit cards (you are correct though). Prepaid cards are not subject to averaged conversion rates because the conversion is calculated at the time of the transaction.

I know mastercard uses the conversion listing services of XE for their prepaid cards. And thus you can check the rate at which they will convert at

This is why I suggested prepaid credit cards for these transactions. Sorry If I was not clear in that.

Sorry I forgot to add. Some prepaid credit card providers do charge a conversion fee (averaging 2.5% per conversion) be sure to check with your provider. As for other fee's most banks will charge 10-20 dollars per issuance of card for a set interval (usually 3 years) and nowadays no minium balance or deposit is required. Its like a debit card only using mastercard/visa/ect. network and thus you are entitled to the insurance that they provide for their transactions.

Last edited by Rugger_can; April 6th, 2010 at 15:58..
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