Best exchange options

Neon uses directly the Mastercard exchange rate without any surcharge. In practice, this is about a 0.40% surcharge over the interbank, but there are some variations over time.

It depends on where you want to draw the line between cost savings and complexity. For instance, I would not bother to save 0.3% on small to medium transactions (0.4 -0.1), but I would definitely consider it for large transactions. And when comparing with Yuh (at 0.95%), this may make a significant difference indeed.
 
Thanks Baptiste for the insight. My problem is that Neon keeps refusing an account. Lenzburger still claims I am tax resident in the US which is not the case. But you cannot reason with them as they don't seem to care. Kaspar& uses the same bank, so I am left with Yapeal.

Yapeal works fine, but was thinking as I anyway need to hold some cash there for all my transactions/payments in EUR which earn no interest, it's more appealing to use Yuh. I can hold EUR at WellBe with a good interest rate if I want to. Once on Yuh I have a okay-ish interest rate with Yuh when I need to do a payment/transaction. Either way, I need money on Yapeal or Yuh before I can make a payment/transaction. Of course, EUR/CHF exchange rate changes so when I make the purchase at a different time than when I exchange I may end up worse or better.
 
Unfortunately, Swiss banks are really not very welcoming to US citizens :/

I don't know if Yapeal has an extra surcharge or not (they do on international transfers; they may as well on paying abroad).

If you want to save on currency conversion with Yuh, I think it makes sense to use Willbe, indeed. Then, you will have a good place to hold cash and convert it (Willbe) and then a good bank to do your business in Switzerland (yuh).
 
They are not US friendly and that is understandable, albeit annoying. But I am not a US citizen and also no longer us resident for tax reasons. But that bank just does not understand it.

Yapeal uses visa exchange rate which is pretty similar to Mastercard and they don't charge extra.
 
Are you sure Mastercard is 40% higher than Visa? Using their calculators it seems VISA is slightly better. Maybe depends on currency as well

Currency Converter – Exchange Rate Calculator

Exchange Rates & Currency Conversion Calculator – Use the converter to get an indication of the rate you may receive when using your Visa card. Learn more.
www.visa.co.uk www.visa.co.uk

Mastercard Currency Converter | Currency Exchange Rate Calculator

Mastercard currency converter tool calculates foreign exchange rates for all the major currencies worldwide to enable cross-border purchases and ATM transactions.
www.mastercard.com www.mastercard.com

yet this one suggest that mastercard is slightly better, but only marginal.
www.thinmargin.com

Visa vs. MasterCard: Who gives better exchange rates?

Which card should you use while travelling, Visa or MasterCard?
www.thinmargin.com www.thinmargin.com

It is neglectable in my eyes for the purchases we typically make. Both of them are noticeably lower than for example the Cumulus Credit card which tries to make you think you don't pay foreign transaction fees
 
All the studies I have read have concluded that the Mastercard has a better exchange rate than Visa. And 0.4% seems to be the consensus. But I don't have the resources to do the tests myself.

You cannot really use the converter unless you do many measures because you don't have a surcharge but a complex algorithm, so the differences will vary wildly.

That study shows about 40% for instance:

money.ca

Mastercard or Visa for foreign purchases - Which is cheaper for Canadians?

For cardholders making frequent purchases in a foreign currency it's vital to compare Mastercard and Visa.
money.ca money.ca

And I completely agree that what Migros is doing with the new Cumulus credit card is shameful. They are outright lying to their customers.
 
Thanks for the link and good comparisons. I don't want to beat a dead horse here, but it's also fascinating to see various attempts to compare them.

Suggest that VISA is cheaper than MC
upgradedpoints.com

Guide to Credit Card Foreign Transaction & Currency Conversion Fees [2024]

We look at the credit and debit card foreign transaction fees and currency conversion fees that you're likely to encounter when traveling.
upgradedpoints.com upgradedpoints.com

Suggest that MC is cheaper than VISA
www.mygermanfinances.de

VISA, Mastercard & Amex: Best Euro exchange rates?

The question is: If your bank does not charge you a fee for foreign transactions, what is the difference in exchange rate between Mastercard, VISA, and American Express? We wanted to find out which credit card brand has the most favourable exchange rate and decided to look at a sample time period.
www.mygermanfinances.de www.mygermanfinances.de

Suggest that AMEX is cheapest, then VISA and then MC

How to Avoid Hidden Foreign Currency Exchange Rate Fees and Save Big

Check out our list of the best foreign currency exchange rate cards if you don't want to pay hidden foreign currency exchange rate fees.
money.ca money.ca

Suggest MC to be better, but had a good explanation which is also interesting at when they post
  • Visa guarantees the exchange rate the day you make the purchase, but has a built in cushion since the transaction typically only posts a couple of days later, so exchange rates could change, meaning there’s some risk for Visa
  • Mastercard charges the exchange rate the day the transaction posts (often a couple of days after the transaction), so since they’re charging whatever the rate is, the cushion is much smaller
onemileatatime.com

Why You Should Use A Mastercard When Traveling Internationally

Here's why you want to use a MasterCard rather than a Visa when paying for purchases abroad. Not all "no foreign transaction fee" cards are created equal.
onemileatatime.com onemileatatime.com

Similar to above showing that VISA charges later than MC
  • Visa often takes a bit longer to post, but when they do they consistently match their published rate for the posting date.
  • Mastercard posted faster, but there were small variations in exchange rates even on transactions posted on the same day.
  • Although not a statistically significant experiment, Visa ended up being 0.27% more expensive than Mastercard.
nomadgate.com

Is Visa or Mastercard Cheapest Abroad?

Which piece of plastic provides the best exchange rate while traveling and purchasing products from abroad? The differences can be surprisingly large.
nomadgate.com nomadgate.com

VISA or MC, as long as we use a bank charging us no foreign transaction fees and paying in local currencies, we are all doing the right thing.
 
Ralph said:
VISA or MC, as long as we use a bank charging us no foreign transaction fees and paying in local currencies, we are all doing the right thing.
Click to expand...
I think that's a good way to avoid falling into the rabbit hole :D

Both Visa and Mastercard offer decent exchange rates, much better than any bank surcharge!
 
Max said:
Could you say a couple more words on it?
Click to expand...
Sure :)

Migros is actively advertising that their card has no currency exchange fee. And on paper, this is true since the card itself has no exchange rate fee. However, the card is using the Migros Bank exchange rate. This exchange has about a 2% surcharge on currency exchange. So, they know they have a 2% exchange fee, and they still advertise it as "free of currency exchange fees." For me, this is lying to their customers.

I talk about it a little more in my article:

thepoorswiss.com

Migros Cumulus Visa Credit Card Review 2024 - The Poor Swiss

My in-depth of the successor of the Cumulus Mastercard: The Cumulus Visa credit card, by Migros! Is it better than before? We find out!
thepoorswiss.com thepoorswiss.com
 
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