I'm planning on getting HSBC Premier Credit Card. It advertises that there is no FTF, but I've read some reports of this being a false statement. Apparently there is no foreign transaction fee, but they use their own HSBC FX rates instead of the Mastercard rates when converting things back to USD, which are about 2-3% worse compared to the rates coming directly from Mastercard. This in turn basically adds a hidden foreign transaction fee on every purchase.
Anyone who actually had this card and used it abroad, is this true or are they using Mastercard rates? Thanks
Anyone used HSBC Premier Credit Card? Is the no foreign transaction fee legit?
byu/Naitra inCreditCards
Posted by Naitra
4 Comments
I have the HSBC Elite, so not quite what you’re asking, but a purchase I made on April 28 for 53.60 CHF was charged as $68.36 USD, and Mastercard currency conversion website says it’s $68.37.
And then a March 23 charge for $340.08 CAD was charged as $248.29 USD. Mastercard website says it’s $248.83 USD.
So it does look like they’re using their own exchange rates, but at least for these two charges, it was better than Mastercard’s rate.
Really? Is that the only bank doing that?
Read the cardholder agreement: https://www.us.hsbc.com/content/dam/hsbc/us/docs/pdf/credit-card-pdfs/premier-cardmember-agreement.pdf
> Transactions made in a foreign currency will be converted by Mastercard® Currency Converter into a U.S. dollar amount in accordance with its operating regulations or conversion procedures in effect at the time the transaction is processed. The currency conversion rate in effect on the processing date may differ from the rate in effect on the transaction or posting date. Mastercard® may change the procedures, from time to time, at its own discretion.
Not what you’re asking but just a heads up that neither the Premier nor Elite cards get reported to TransUnion – HSBC only reports to Equifax and Experian.