Do I pay via Visa or Mastercard when traveling?

Many of you have multiple credit cards and know about foreign transaction fees, but did you know Mastercard provides a better exchange rate than Visa the majority of the time?

A Nerdwallet study from 2016 have shown that Mastercard beats Visa about 70% of the time. Is that still the case today? Find out below.

The table below from January 2026 shows the exchange rates for 1 USD to Local Currency based on Visa exchange rate calculator and the Mastercard exchange rate calculator when assuming zero percent transaction fees. When buying local currency with USD, a higher number is better because you receive more for every dollar spent.

Currency Exchange Comparison (1 USD to Local)

So which is better?

• Mastercard: for the currencies above. Overall, Mastercard wins on rates approximately 70% to 90% of the time. Their markup over the "interbank" rate is typically around 0.20%, while Visa’s is closer to 0.45% to 0.50%.
  • Exceptions: Visa can occasionally beat Mastercard on a specific day due to their different "lag times" in updating rates. Visa also sometimes performs better for specific currencies like the United Arab Emirates Dirham (AED). For some currencies like CNY, Union Pay will likely offer a better rate than both Visa or Mastercard.

What do you get out of it?

You save roughly $2.5 to $3 for every $1,000 spent on Mastercard instead of Visa. You will save much more money by choosing a Mastercard with No Foreign Transaction Fees (saving you 2-3%) than solely by switching from Visa to Mastercard.

What card should I sign up for?

I would recommend these cards based on your geography. Below are cards from Hong Kong. I will add other places in the future.