Best payment option when shopping with Amazon (US)

Lpeuwayaqdq on 14/03/2014 - 09:22

Hi all, I am about to shop with Amazon (US, if that's relevant at all) and wondering if anyone can advise on the best payment option. I didn't really pay attention on the payment method when AUD was higher than USD but now that it has gone
down, it's in my best interest to use pay with the best exchange rate and minimum transaction fee (if any).

It's best if the otpions are kept at general rather than down into the Bank institution. For example, which one is the best: Paypal, American Express (issued by local bank), Visa (issued by local bank), MasterCard (issued by local bank).

Thank you for your feedback. I am sure this will help others too.

Financial

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Comments

  • c64 on 14/03/2014 - 09:35

    citibank plus account. cards for overseas transactions has been previously discussed numerous times on the forums

  • ESEMCE on 14/03/2014 - 09:55
    +1

    Yeah the answer really depends on which institution and which card from that institution that you have.
    If your card has zero overseas transaction fees then that's the best option.. otherwise it's all much of a muchness (ie they all rip you off), but seriously, unless you're buying $1000's worth of gear, you're only going to save a few dollars either way.

  • peuwayaqdq on 14/03/2014 - 11:47

    Thanks for your responses.

    How about Paypal? If I ask Amazon to bill me in USD and I opt to be charged by Paypal in original currency (USD in this case), will I still pay bank's international transaction fee? Or would Paypal use their Australian account to charge my bank? Does it make sense? Cheers,

    • PissLUR on 14/03/2014 - 12:13
      +1

      only 3 cards that dont charge international transaction fee for foreign currency. bankwest platinum, 28 degrees and citibank plus.

    • ESEMCE on 14/03/2014 - 14:21

      You can choose to use Paypal's dodgy conversion rate or your bank's conversion rate plus and international fees.

  • PissLUR on 14/03/2014 - 12:15
    +1

    fyi, There is no paypal option in amazon.

  • [Deactivated] on 14/03/2014 - 12:56

    If you want hassle-free, I think you can select to pay in AUD. Amazon will do the conversion from USD, EUR, GPB to AUD with no issues. This is how I buy my things to avoid the transaction fee. However, like Paypal, be prepared to be slugged a small conversion fee buffered into the conversion.

  • Almost Banned on 14/03/2014 - 15:25

    Paying it in local currency using my 28 degrees card has always been a winner for me.

  • peuwayaqdq on 14/03/2014 - 21:34

    PissLUR, you're right I forgot that Amazon doesn't take Paypal.

    I just made the purchase and in doing so I compared the exchange rates between my visa card and Amazon's. It turned out to be pretty the same. Amazon exchange rate is USD 1 = AUD 1.1456 while my visa card exchange rate (after taking 3% transaction fee into account) is USD 1 = AUD 1.1468

    I don't know why people say that Amazon exchange rate is a rip-off?

    • ESEMCE on 15/03/2014 - 11:52

      Cause you can easily get zero transaction fee cards… so Amazon is "ripping you off" by roughly 3%…
      Like I said at the top.. it's not really worth worrying about unless you're spending a lot and often.

  • mick1 on 15/03/2014 - 11:40

    If the transactions are not large (sub $1000) my experience is that 28 Degrees Card (or citibank equilalent) and pay in the the foreign currency is best. 28 Degrees is mastercard - which has a standardised and slightly better currency conversion rate than Visa or Paypal - and no fee.

    • c64 on 15/03/2014 - 14:20

      mastercard - which has a standardised and slightly better currency conversion rate than Visa

      they are both pretty much the same. seems to vary from day to day. eg,
      12-mar-2014 visa had better rate, 13-mar-2014 m/c had better rate.

      the biggest saving is skipping the currency conversion fees the banks, paypal, amazon etc charge.

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