Credit Card Review - Amazon Visa

The average credit card allows you to make purchases around the world without having to carry foreign currency, (just remember to set up a travel notification with your card issuer), but there’s a catch. Most cards will automatically exchange your purchases into your native currency while adding a 2.5% fee for the convenience. There are a few cards which don’t add this fee, but my favourite is the Amazon Visa card.

Like all cards, the Amazon Visa card uses the visa exchange rate and converts your purchases for you, but this card does it without adding on a conversion fee. On top of that you’ll also earn 2% back on purchases at Amazon.ca, and 1% back everywhere else. When you add it all up, you’ll come out way ahead relative to using the typical credit card. Below is an example to show you what I mean:

EXAMPLE

Spending $5000 on a regular credit card

Cost of your item(s)                         $5000
Currency Conversion (at 1.125)        $5625

Spending $5000 on your Amazon Visa

Cost of your item(s)                         $5000
Currency Conversion (at 1.10)        $5500

Savings                                             $125

The idea that you will regularly spend $5000 on your credit card may seem unreasonable, particularly if you're here to get financial advice to help get yourself out of debt. However, a family of four on a trip out of the country could easily spend $5000 on hotels, travel, food, and admissions over the course of a week or more. The average family staying at a Disney World hotel for example, could easily exceed this amount in less than a week.

I've said it before, and I'll say it again, if you're going to spend money, you may as well get rewarded for it. The Amazon Visa will save you the 2.5% convenience fee on your transaction, but it will also give you 2% back on purchases at Amazon.ca and 1% back on purchases everywhere else. When you consider that the best Credit Cards usually top out at 2% back, you're coming out way ahead when the foreign exchange convenience fee is added in.

Once you reach $20 in rebates, there will automatically be a $20 statement credit applied to your next bill. Plus, if you apply at Amazon.ca you'll get a $20 Amazon.ca gift certificate on approval.