How to Earn More Miles on Overseas Spending (and Avoid FX Fees)
Extra fee on foreign money
Online shops abroad too. It is the .
Quick questions 2
Does buying from an overseas website count as foreign currency spend?
Usually yes, if the merchant charges you in a foreign currency or is registered overseas. Some banks also treat SGD transactions processed overseas as foreign spend, so check your card's terms.
Should I use a multi-currency card instead of a credit card abroad?
For small purchases and cash, a low-fee multi-currency card often wins. For larger purchases, a credit card with a strong overseas earn rate can be worth the fee if you value the miles highly.
Read the full guide
Overseas spending is where many miles cards pay their highest rates, and also where hidden costs are easiest to miss. The trick is to weigh the miles you earn against the fees you pay for them.
Foreign currency fees, explained
When you pay in a currency other than Singapore dollars, most cards add a foreign currency transaction fee on top of the network's exchange rate. On Singapore-issued cards this fee is typically in the region of 3 to 3.5% of the transaction.
This applies to online purchases from overseas merchants too, even if you never leave home. A foreign website billing you in US dollars attracts the same fee.
Are the miles worth the fee?
Think of the fee as the price you pay to buy miles. If a card earns a high overseas rate, you are effectively buying miles at a certain cost per mile. Whether that is a good deal depends on how much you value a mile.
For example, earning several miles per dollar in exchange for a roughly 3% fee can be a reasonable way to buy miles if you redeem them well for premium cabins. Earning only a low base rate for the same fee is usually poor value, and a no-FX-fee debit or multi-currency card would do better.
Tip: Divide the fee you pay by the miles you earn to get your cost per mile. If it is higher than the value you expect per mile, use a different payment method.
Always pay in the local currency
Terminals and websites abroad sometimes offer to charge you in Singapore dollars. This is called Dynamic Currency Conversion (DCC). It feels convenient, but the exchange rate is usually much worse than your card network's rate.
Worse, many banks still treat a DCC transaction as foreign currency spend, so you can pay both the poor conversion rate and the card's foreign currency fee. Some cards also treat DCC transactions differently for earn rates. When given the choice, always pick the local currency.
A quick checklist before you travel
- Decide which card is your main overseas card, and which is the backup if the main one is declined or capped.
- Check whether that card has a cap on its overseas bonus, and when it resets.
- Know which card to use for hotel and airline bookings, which may code differently from on-the-ground spending.
- Carry a low-fee option, such as a multi-currency account, for cash withdrawals and small purchases where miles barely matter.
- Tell yourself now: always decline to be charged in Singapore dollars abroad.
CardMatchly weighs foreign currency earn rates against FX fees for the cards in your wallet, so you can ask which card to tap in Tokyo or London and get a straight answer. Try it free.
General information, not financial advice. Banks set their own rates, limits, fees and rules, and change them from time to time, so check with the bank before you apply. CardMatchly is independent and is not paid by any bank.