buying gears in HK using credit card

[dannygirl]

Hi guys,

This is an emergency!! i tried searching for related topics but i din get a definite answer. Here's the problem...

I'm currently in HK now and i'm planning to go to the popular shops mentioned in CS Tan's HK thread. Actually brought SGD3k worth of HKD in cash to buy the cannon 10-22, 50 f1.4 and 580ex2 on the last 3 days of my stay. Planned everything swee swee liao. Unfortunately my wife suddenly went crazy when she went to the factory outlets in tung chung yesterday. Bought 2 coach bags and tons of espirit clothes using my cash, giving me the "do you love me?" look whenever she asked me if can buy anot. And the rest is history lah....

I searched online liao. Alot of negative feedback about using credit card overseas, about how banks charge merchants 3% on the amount transacted and then charge card users 1-3% transaction fee and at the same time, give a lousy conversion so that they earn even more.

My questions are:

1) If the HK shop quote me XXX HKD, how much more (in terms of %) will i be paying when i receive my credit card bill statement?

OR

2) Will credit card transaction fees render the purchasing of gears in HK more bo-hua?

Appreciate it if any bros with experience purchasing with credit card overseas can comment.

 

[sabee]

You are not charged a transaction fee, that fee is charged to the merchant. However if you don't pay in cash some merchants may request you to pay 2% more to cover that charge. The charge you get is actually a fee for the foreign exchange 'service', which is usually around 2% but varies a little from card to card. The exchange rate used is actually around the currently traded exchange rate, its the 2% fee that skews it in their favour.

 

[s2s1]

You should use credit card to buy fashion, the merchant will not charge your processing fee and you can earn points. The exchange rate of Citibank credit card is not bad! (better than many money changer overseas)
I always use it overseas and confirm the rate is not very far than money changer gives here.

But if you use credit card to shop camera gear, 90% they will charge extra 2 or 3% processing fee on top of the price...

 

[s2s1]

If you bring lots SGD and want to change there, you can try this company,
http://berlincompanyexchangelimited.blogspot.com/

 

[azzurri]

You can get the retailers to charge your credit card in Singapore dollars; you will have a better idea on how much you will have to pay.

 

[Calahan]

Hi guys,

This is an emergency!! i tried searching for related topics but i din get a definite answer. Here's the problem...

I'm currently in HK now and i'm planning to go to the popular shops mentioned in CS Tan's HK thread. Actually brought SGD3k worth of HKD in cash to buy the cannon 10-22, 50 f1.4 and 580ex2 on the last 3 days of my stay. Planned everything swee swee liao. Unfortunately my wife suddenly went crazy when she went to the factory outlets in tung chung yesterday. Bought 2 coach bags and tons of espirit clothes using my cash, giving me the "do you love me?" look whenever she asked me if can buy anot. And the rest is history lah....

I searched online liao. Alot of negative feedback about using credit card overseas, about how banks charge merchants 3% on the amount transacted and then charge card users 1-3% transaction fee and at the same time, give a lousy conversion so that they earn even more.

My questions are:

1) If the HK shop quote me XXX HKD, how much more (in terms of %) will i be paying when i receive my credit card bill statement?

OR

2) Will credit card transaction fees render the purchasing of gears in HK more bo-hua?

Appreciate it if any bros with experience purchasing with credit card overseas can comment.

Not all shops will charge especially the well-known ones. I bought a Tamron lens from Man SHing .and paid the RRP with my Citibank card. The exchange rate was quite good and close to the published exchange rate. No extra charges.

I believe if you go to a smaller shop and bargain the price down and then wanna pay with credit card, the shop will sure charge you processing fee.

If the price at the larger shops are good enough, buy from there as there will be no processing fee. Just to be sure ask the salesman at the start.

Happy shopping

 

[cjl]

Hi,

I just came back from HK 2 days ago. I went to Man Shing Photo Supplies(萬成攝影器&#26448 to get 50mm 1.4 + 430ex flash.

Man Shing is good as the sales person are patiance enough and explain things in both Eng and Mandarin. Look for this guy called Rocky when u r there.

As for the CC charge, the sale person allows me to pay by HKD or SGD. The exchange rate will be shown on the CC swipe machine. So thats the price you will be paying. I choose to pay in SGD, the rate is around 0.188, which i feel is ok.

Anyway, If you are looking for the 100mm Macro L lens, it seems to be out of stock. Kinda disappointed.
:cry:

 

[Forto]

Call it any name, I think the original poster is asking about from the consumer's perspective, how much more does he have to pay comparing using credit card paymernt against cash.

Answering the original poster, I just came back from a holiday trip in Europe, and was surprised by how much more I'd to pay. On the day I made the purchase in Euro, the spot rate was like 1.69. On my credit card statement, it was 1.74. I called up DBS, the person explained DBS charges 1.5% commision for the transaction, and it's VISA which posted the forex rate, which was about 1.71. Also, the forex rate used is based on the date the transaction was posted, not when it's transacted.

I paid most of my expenses in cash during my trip knowing previously how much commision I'd have to pay all these financial institutions. Above being one of the few transactions I made using cc.

Hope that helps you decide when to use cc when you have to.

You are not charged a transaction fee, that fee is charged to the merchant. However if you don't pay in cash some merchants may request you to pay 2% more to cover that charge. The charge you get is actually a fee for the foreign exchange 'service', which is usually around 2% but varies a little from card to card. The exchange rate used is actually around the currently traded exchange rate, its the 2% fee that skews it in their favour.

 

[dannygirl]

You should use credit card to buy fashion, the merchant will not charge your processing fee and you can earn points. The exchange rate of Citibank credit card is not bad! (better than many money changer overseas)
I always use it overseas and confirm the rate is not very far than money changer gives here.

But if you use credit card to shop camera gear, 90% they will charge extra 2 or 3% processing fee on top of the price...

aiya. y didnt i tink of dat? when i was at tung chung yesterday, i kept tinking "got cash use cash 1st... later then tink of how to solve the problem"... guess its my own lack of foresight dat led to my current predicament, not my wife's vanity.

so to sum it up:

1) fashion retailers charge the same amount regardless of payment method. if i pay by card, they absorb the card transaction fees which is to my advantage
2) camera shops charge differently; more for credit card so as to cover the transaction fee, which is to my disadvantage

 

[dannygirl]

You are not charged a transaction fee, that fee is charged to the merchant. However if you don't pay in cash some merchants may request you to pay 2% more to cover that charge. The charge you get is actually a fee for the foreign exchange 'service', which is usually around 2% but varies a little from card to card. The exchange rate used is actually around the currently traded exchange rate, its the 2% fee that skews it in their favour.

hi... dats wat i thot too. but most of the internet comments dat i found say dat banks have all these hidden charges. dats y i panicked n wanted to clarify with u guys.

so u r saying dat actually there wont be any transaction fee appearing in my bill but i will ultimately be paying more in two areas:

1) i will be quoted a higher amount to cover the 2-3% merchants' transaction fee
2) this amount will then be increased again due to the exchange rate used by the credit company

let (X) be the price quoted by camera shop in HKD.
if transaction fee is 3% of transacted amount,
i will pay (1.03)(X) to the camera shop using credit card
suppose actual conversion rate is 1HKD is to (Y)SGD
but credit company uses a raises the exchange rate in their favour by Z ie. 1HKD is to (Y+Z)SGD
so in my credit statement it will show (1.03)(X)(Y+Z)
instead of (X)(Y)
which means i lugi (1.03)(X)(Y+Z) - (X)(Y) = 0.03XY +1.03Z

 

[dannygirl]

paisay... answer should be 0.03XY + 1.03XZ

 

[dannygirl]

Not all shops will charge especially the well-known ones. I bought a Tamron lens from Man SHing .and paid the RRP with my Citibank card. The exchange rate was quite good and close to the published exchange rate. No extra charges.

I believe if you go to a smaller shop and bargain the price down and then wanna pay with credit card, the shop will sure charge you processing fee.

If the price at the larger shops are good enough, buy from there as there will be no processing fee. Just to be sure ask the salesman at the start.

Happy shopping

huh? u buy at RRP without discount using credit card? but i thought the norm is they will give abit of discount? does dat mean dat ur "no discount" is actually the transaction fee
paid to the credit company

anyway, i dun tink i will buy from the small shops. duno if its becoz i look like carrot or wat, i walk into a few small shops near my hotel at nathan road, they all quote me ard 1300-1500SGD for the 10-22mm

 

[cjl]

huh? u buy at RRP without discount using credit card? but i thought the norm is they will give abit of discount? does dat mean dat ur "no discount" is actually the transaction fee
paid to the credit company

anyway, i dun tink i will buy from the small shops. duno if its becoz i look like carrot or wat, i walk into a few small shops near my hotel at nathan road, they all quote me ard 1300-1500SGD for the 10-22mm

Hi again.

Were you quoted diff pricing (from the sales person) for CC or cash payment? When i did my shopping, the pricing for both CC and cash is the same (i asked for the cash transaction price 1st of coz.... )

I understand abt the diff rates offered by our repsctive CC coys. Maybe you should look at this way: as long as you feel the things you r buying are cheap enough compared to SG pricing, then you should buy. Else just let go....

I stayed at the cam store for nearly an hour, spending 3/4 of the time to simulate scenarios of what hap if the CC rates are too high or certain level. But after much calculation, I did save quite a bit, like SGD200 plus.

However, nothing beats cash. I realised if I use cash which i exchanged way before my trip (@ 5.56) I will save even more.

Oh well, give and take i guess...

 

[Atlas]

When using CC oversea, most bank will coverted the money to USD before changing to SGD. Double conversion.

 

[Treetrunk]

When using CC oversea, most bank will coverted the money to USD before changing to SGD. Double conversion.

:bigeyes: You get short changed twice based the bank's lousy rates? HKD => USD => S$.
Wah Piang! Never notice this as i seldom use the CC on trips.

 

[huggable]

Another way that the TS can consider is to check out the exchange rate for the overseas
ATM cash withdrawal services, like Cirrus, and Plus.

If the selling price of the item (using HK$, cash) x exchange rate of Cirrus or Plus is still lower than the price in SG, it will still be worth buying.

 

[Treetrunk]

Another way that the TS can consider is to check out the exchange rate for the overseas
ATM cash withdrawal services, like Cirrus, and Plus.

If the selling price of the item (using HK$, cash) x exchange rate of Cirrus or Plus is still lower than the price in SG, it will still be worth buying.

Would there be an admin fee for such withdrawals overseas which is similar to advance cash thru credit cards from atm's?

 

[sabee]

Would there be an admin fee for such withdrawals overseas which is similar to advance cash thru credit cards from atm's?

Yes, varies from card to card, country to country. Usually its something like $20-30. The fees depends on the issuing bank, some even have promotion that reduces the fee to almost $0, great for travelers, but you still lose a little on the exchange rate.

 

[huggable]

Yes, there's usually a flat-fee admin charge per withdrawal. So need to factor that in as well, and make just one withdrawal.

 

[unseen]

I know my UOB current account charges only $5 per transaction, and it goes at a very favourable exchange rate..
So much so that by withdrawing overseas, I get better rates than to go to local money changers.

Of course, the best money changer has got to be the one at Taiwan Airport, offering unbeatable rates IMHO.