Mastercard’s currency converter is highly accurate for determining the base exchange rate applied to transactions, generally offering rates very close to the mid-market (interbank) rate. It is considered a reliable, transparent tool for travelers and online shoppers, typically providing better or similar rates compared to competitors like Visa.
The short answer: MasterCard wins
Our results show that all else being equal, you can expect to save ~0.1-0.7% on average with MasterCard as it generally provides better exchange rates than Visa and UnionPay across most currencies, at least 70% of the time.
Mastercard's exchange rate is typically very close to the Google rate but may be slightly different due to real-time fluctuations and processing costs. However, unlike many banks, Mastercard does not add hidden markups to its exchange rate.
Mastercard often provides better currency conversion rates for international travelers. Both networks offer comparable security features, with Visa's Advanced Authorization and Mastercard's ID Theft Protection. The issuing bank, not the network, typically determines rewards programs, interest rates, and fees.
MasterCard® - Cross Border Fee (CBF)
This MasterCard® fee is in addition to any DCC fee charged by the foreign merchant to accept the purchase in U.S. dollars. For transactions involving currency conversion, MasterCard® applies a 1.0% fee. This fee will appear as a separate line on the cardholder's statement.
The best Mastercard with no foreign transaction fee is the Capital One Venture Rewards Credit Card because it offers a sign-up bonus of 75,000 miles for spending $4,000 on purchases within 3 months from account opening (the bonus is worth $750 in travel). Plus, you can earn 2 - 5 miles per $1 spent on purchases.
Currency can fluctuate throughout the day too, with the morning or late afternoon cited as the best times to buy. These are just trends though and the currency markets fluctuate regularly, so keep your eye on them if you're looking to exchange currency soon.
MasterCard vs Visa (and why MasterCard is better)
This is because, as per our extensive research, Visa offers worse FX rates than MasterCard in every currency we analysed. This means that in almost all instances, your purchase will be more expensive if you use a Visa rather than a MasterCard on an overseas transaction.
You are charged a fee of 2.5% of the converted amount, on both debits and credits. This fee is charged on currency conversion. A foreign currency Convenience Cheque or payment is converted at CIBC's branch selling rate for Canadian dollars in effect at the time it is processed by CIBC.
The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule).
Global acceptance: Visa cards are accepted in over 200 countries, while Mastercards are accepted in over 210 countries. You'll rarely encounter a merchant that takes one card but not the other.
Check with the merchant to confirm if you'll be charged an international transaction fee. The best way to avoid the international transaction fee is to look for debit and credit cards that allow you to shop overseas without being charged international fees.
Both Mastercard and Visa calculate exchange rates to convert all foreign-denominated transactions to USD. Foreign transaction fees are charged based on the USD transaction after currency conversion has taken place.
Being charged in the local currency helps you avoid hidden ATM rip-offs by giving you the best possible exchange rate. This is because if you choose the local currency, your bank or card provider will do the currency conversion and apply the exchange rate.
The rate of the foreign transaction fee is 2.5% on Canadian credit cards.