How does the new OCBC 90°N credit card foreign fees work?

Hi there, I am considering to get the OCBC 90°N card for miles, saw that foreign charges are 3%?

My calculation of value for the miles:

(E.g. Payment in JB for RM300, estimated SGD100)

Foreign charge = SGD100 x 3% = SGD3.
Miles earned = SGD100 x 4mpd = 400 miles.
Max cost of mile im willing to spend = SGD0.018.
Cost per mile from transaction = SGD3 / 400 = SD0.0075.

Thus is worth it if im willing to pay up to SGD0.018 per mile.

Would appreciate if anyone could confirm my understanding :)

OCBC 90 Degrees N Mastercard Credit Card

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pat

10 Feb 2020

Yes, your calculation and understanding of the scheme is correct. Since you are willing to spend 0.018 per mile, the transaction will net you at 0.0075 which is cheaper than what you are willing to pay. It is worth it in this case

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Elijah Lee

10 Feb 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Your understanding is correct.

You may pay fx fees, but in exchange the bank rewards you with miles. So in a sense, you are paying the fx fees (or any other fee really, for that matter).

Once you know your fx fees, you can then judge how much you paid per mile obtained. Thus if your cost is lower than your threshold to buy miles, it is ok to just pay with the card, forsaking the outright cost savings by paying in cash in exchange for miles.

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