Arbitraging credit cards while traveling abroad
1–10 of 27 posts
Re: Arbitraging credit cards while traveling abroad
#2This would only be arbitraging if you were buying something on one card and returning it on another card. It's not arbitrage if you're not making a profit, it's just saving.
Nice cost-comparison tool though :)
Re: Arbitraging credit cards while traveling abroad
#3That's really useful. You might want to take a look at https://supercard.io/ - it's a virtual credit card which chooses the best daily rate for you.
I'm on the beta trial and finding it pretty useful.
Re: Arbitraging credit cards while traveling abroad
#4Interesting concept let me see his method..scrolling.. oh it is about marketing his app.
Unless you invest the money you get from the credit card, isnt his approach just min/maxing your cost to get money?
Re: Arbitraging credit cards while traveling abroad
#5Why not just get a card without foreign transaction fees?
Re: Arbitraging credit cards while traveling abroad
#6Why not just get a card without foreign transaction fees?
Re: Arbitraging credit cards while traveling abroad
#7Why not just get a card without foreign transaction fees?
Because even with no fees, the rate your card uses to turn USD into whatevers will vary from card to card. If you're not paying an up front transaction fee, you're almost certainly getting rinsed on the rate offered.
Re: Arbitraging credit cards while traveling abroad
#8Why not just get a card without foreign transaction fees?
Even among cards that generally use the mid market rate, the time they set the rate and their source will often differ, resulting in the differences mentioned in the OP. So if you feel it's worth your time, and if you can get up to date rates, you can still save a bit by using the card with the best rate on a given day.
Re: Arbitraging credit cards while traveling abroad
#9Without real-time rates available from multiple networks, this relies on that back-tested effect that the card with the better rate tends to persist for several days; is there a reason to be confident that will continue? Not that there's much risk if it doesn't, but you could well just be wasting your time.
Re: Arbitraging credit cards while traveling abroad
#10Nice trick, though not that practical.
1% of oversee spending may be to little benefit for the cost: 1. Get more than one card with zero foreign transaction fees. Make sure you won't get charged yearly fee on those.
2. On every transaction, check the rate on smarthphone. Oh, you want to buy $3 coffee, let me check my rate to see if I can save $0.03.
3. More cards is more monitoring hassle. Harder to track, more hassle if they get stolen and you need to block them all. Also payback program tracking is much harder.
4. Same with fees and interests. More card is more likely that you miss some payments and get charged interests/overdraft. One incident and you whole savings can go away. Even with autopayment you need to make sure you balance your accounts.