Investors know very well the importance of spreads to foreign currency trading, a staggeringly large industry with an average daily turnover of roughly $3.98 trillion, but when it comes to foreign business travel or relationships with overseas vendors, many business owners fail to take advantage of disparities as high as 15% between the exchange rates offered by different payment methods and different companies.
Card Hub recently conducted a study of the US dollar-to-Euro exchange rates available via use of a MasterCard or Visa credit card and the cash exchange services offered by both major banks and Travelex, the biggest airport currency exchange company in the world. This study revealed that:
- Visa and MasterCard provide the best exchange rates—14.7% lower than those offered by Travelex and 7.9% lower than the major-bank average
- The banks that offer the best rates are Northern Trust and Harris Bank
- The banks that offer the worst rates are US Bank and Fifth Third Bank
- An 11.9% differential exists between the best and worst rates banks offer
The study’s findings result in a clear money-saving strategy for business owners who must either directly or indirectly deal in foreign currency.