Chase Sapphire Foreign Exchange Rate

If it makes you feel better, the exchange rate is set by VISA, not by Chase. I think you are perfectly fine sticking with your Chase Sapphire card if you like it otherwise.

https://wise.com/us/blog/chase-sapphire-foreign-transaction-fee

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Full Disclosure: I am NOT a Chase Sapphire user. I am NOT in anyway affiliated with Chase other than having a Chase Amazon card in my wallet.

I believe that Visa and Mastercard charge a 1% fee on every foreign transaction to
do the conversion into the home currency. So even if the bank/card is not charging
a conversion fee, you are paying one to use the card network.

I don't know for sure how this is shown, but since I've never seen a separate fee broken
out in my statements, I am guessing it's baked into the conversion rate that is used. You
might be seeing this twice since you converted into and then out of EUR.

Not sure if Amex charges a similar fee, but, since most Amex cards have an annual
fee that's higher than comparable Visa or Mastercard cards, even if they don't, you're
still paying for the privilege.

Also, the core exchange rate doesn't fluctuate on a daily basis, it fluctuates on a
moment-by-moment basis. I would guess that the cards do the same, so you
wouldn't expect the rates you compared to almost ever be exactly the same.

And obviously, the dollar has been going down against the euro this year, so you
would expect a refund from a charge earlier in the year to most likely return less
than you paid.

While I understand your concern, I really encourage you to discontinue this line of thought as it is faulty. The exchange rates are set by VISA and will differ from the exchange rates you find online. I find that Chase Sapphire Reserve has been the absolutely best card for international travel for me.

Just curious now, in the transaction that cost you $14, what was the total initial charge in US Dollars?

Not sure if Amex charges a similar fee, but, since most Amex cards
have an annual fee that's higher than comparable Visa or Mastercard
cards, even if they don't, you're still paying for the privilege.

Also... AMEX is accepted at many fewer merchants than a VISA card is.

Thank you all for taking the time to reply. Thanks Dave and shoeflyer for the link and explanations. I learned things that I didn't know/think about.

Individual credit card companies do not set the exchange rate. As others above have mentioned the exchange set the exchange rate AND adds about 1% to the exchange rate as their fee. It is buried in the rate. The rate used in the Interbank rate and not sure if you can find it anywhere on the internet. It is an auction rate that literally changes every few minutes but generally in the fourth digit ---00.000X. I have never paid much attention to a credit/refund in local currency. You may be discussing fractions of pennies so I don't know. I have used the Reserve card for years and it has served me well so I am not absolutely certain how to respond to your concerns. Personally don't think there is anything there but it is your experiences.

And obviously, the dollar has been going down against the euro this year, so you
would expect a refund from a charge earlier in the year to most likely return less
than you paid.

@shoeflyer is exactly right - you made the original purchase in Euro when the US dollar was higher, and then took the refund when the dollar was lower - thus the difference between the dollars you paid and then received back. Consider the opposite - if you had made the purchase when the dollar was weaker and then it strengthened, you would have made a few bucks on the deal.

So no reason to dump the Sapphire card. However, if you're looking for another good travel card, check out cards from Capital One or the Barclay's AARP travel card - I found that the PIN I set up for the Barclay's was needed and worked several times on a recent trip.

Chase (or your bank) does not physically pay the merchant over there and bill you. That function is done by one of several agents (Mastercard, Visa, et al for POS transactions and Cirrus/Plus for ATM transactions) collectively known as the "Network". They pay the merchant and add 1% total fee for the cost of making the currency conversion and for the handling the transaction. They do this for anyone, bank or credit union. With Chase, USBank, and BankAmeriCard, the bank adds 2% for themselves for a total of a 3% fee to you. Wells Fargo only charges me $5 per $500 (max) transaction, which amounts to just over 1% My credit union pays the 1% fee and adds nothing; I pay only 1%. Fidelity and, I think, a few other entities like Capital One and Schwab eat the 1% and add nothing. (Actually, there is more to this, but I don't know the details. When the Network pays the merchant, the amount is discounted by 2-3%?, so somebody is making more.)

When you use your credit or debit card for a Point of Sale (POS) transaction, the merchant only gets a % of the sales price. This "discount", maybe 2% or 3%, is called the Interchange Fee. Laws in the European Union limit the Interchange Fees that their cards can charge at 3/10% for credit card transactions or 2/10% for debit card transactions. The EU doesn't regulate US banks, they can charge whatever Interchange fee they negotiate. What I don't know is whether the Network keeps the Interchange fee, and bills your banks for the total sales amount plus the 1% Network fee, or if the total billed your bank is the discounted amount plus 1%, so your bank gets the Interchange fee.

The exchange rates are set by VISA and will differ from the exchange
rates you find online.

The exchange rate is not set only by VISA, but by the Network, of which VISA is just a part. And the Interbank rate will change constantly during the day as major banks exchange currency. What you see is only the rate at that instant. I think the Network sets the rate for the day at some rate during a 2 hour period, probably the most advantageous for them, like the highest rate during that period.

Many years ago, probably in the last century, the Network called the fee, 1%, that they charged for a foreign transaction a "currency exchange fee". Wells Fargo, which has an international currency operation paid them in the foreign currency and said "we're not exchanging currency, we're paying you in the local currency, so we don't owe you a fee." The Network didn't want to do the work for nothing, so now the total is divided into a currency exchange fee and a cross-border transaction fee, each about 0.5%±0.1% (one was 0.4%, the other 0.6%). When, in 2017, I inadvertently accepted DCC, the Network payed Reisebank in dollars and billed my credit union in dollars. There was no currency exchange fee, just an ~½% fee for handling the transaction.

Thanks again to everyone who contributed to this subject.
After having read the replies, I decided to do a little research on the internet to better understand fees involved when I use my credit card for foreign transactions. My understanding, in summary, is that there is exchange rate plus a few other fees (most of the following is copied from the internet):
As many fellow travellers above alreay correclty pointed out, the exchange rate is set by networks such as Visa based on the wholesale market rate or a government-mandated rate from the day before the transaction is processed. The processing date may differ from the date of the transaction. The processors (e.g., Visa) normally charges a foreign currency conversion fee at 1%.
When using a credit card in a foreign country, the card issuer, usually a bank, charges a foreign transaction fee typically 2% to 3% of the purchase price.
In addition to the exchange rate and foreign transaction/conversion fees, you may also be charged an administrative fee by your bank. The total fees you pay when using your credit card in another country can range from 1.0% to 3.5%.
Please correct any of my misunderstanding. But if the above are correct, the money I lost in "translation" is the combination of the above factors and it's impossible to know how much was taken by the processor vs. the bank.
Thank you all,

Your general assumption is correct but all credit card issuers do not charge the same fees. Once the exchange rate hits the card issuer, all additional fees are determined solely by the card issuer --- with great variation ! I use a credit union debit card that offers 10 free transaction. Over 10, then a $1 per transaction within the 30 day billing period. My back up bank debit card is 3% -- a fairly standard fee. For the convenience of the card, even the 3% is not unacceptable. There are credit and debits cards that do not charge additional fees or rebate any extra fees. You do need to check around to find a card that matches you spending pattern.

In the US all fees charged by the card issuer must be fully disclosed on your monthly credit/debit card statement. It should be very clear on your monthly statement as to all charges except the original network fee.

When using a credit card in a foreign country, the card issuer, usually a bank, charges a foreign transaction fee typically 2% to 3% of the purchase price.

That you should know from the terms of your card, or is easy to figure out. Not all cards charge an FTF, none of mine do, leaving just the 1%.

But something like the instance that cost you ~$14, that means if the initial coast was $700, then 1% at buy, then 1% at cancellation, would be $14.

If your card charges an FTF, that may only apply to the original purchase, not the cancellation (who knows?). If so, then a purchase and a return of ~$300 would run up $14 or so. (3% of $300=$9, 1% both ways = $6, $15 total.)

Thanks again to all. I have re-read all the replies to enhance my understanding. Y’all are very knowledgeable on this subject.
It seemed that we can choose our credit card to avoid foreign transaction fees but we cannot avoid foreign currency conversion fees charged by the Network. And since the fees are ordinary and normal (as one reply said “The Network didn't want to do the work for nothing”), we just have to accept them as part of cost of international travelling.

You seem to be overly concerned with saving 1 % or less. It is hardly worth the brain damage. If it is critical to save 1% there are lots of areas for greater saving.