Navy Net - Royal Navy Community

Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Credit Cards Exchange Rate Costs - Did you know?

I'm in the process of cutting my losses again - I do this once in a while and with surprising results at times.

One I've just come across is the credit card exchange rate and hidden costs, quite big ones. Many will know about this and many won't.
It's an issue for me as I earn money in the UK and often spend it overseas as I live in the euro-zone.

I always thought that the VISA exchange rate is good and that a credit card was a good way to spend money overseas. Half right, half wrong. The VISA exchange rate is good, but your credit card company are PROBABLY / POSSIBLY hiding an additional % charge in that which does not appear on your statement billed separately. This can be 3% - £30 more on your £1000 holiday is not insignificant in my view. Some cards do not charge anything.

I always thought my Egg card was cheap - I pay an extra 2.65% on every purchase I make on it. Ba5stards. I will be applying for a new card today.

For more info, see here:

http://www.moneysupermarket.com/car...ype=CreditCard&Adverse=No&feature=usingabroad

This site is actually worth a look for any credit card related stuff as it has a series of tables for which card is best for different types of card use, who has offers, who charges for balance transfers etc.
 
The plot thickens. A letter to my 'bargain' internet bank Smile reveals that I get hit twice for drawing cash out on my DEBIT card while overseas:

From Smile:

"Dear Mr Good GO,
.....
When you use your card to buy currency or travellers cheques or to draw money from a cash machine abroad, as well as the 2.75% charge you'll also be charged a Visa fee.

- Debit cards 2.0% (minimum £2.00)
- Credit cards 2.5% (minimum £3.00)

This charge will show separately on your statement as 'Visa charge'. "

To be fair to smile, while they've been quietly robbing me every time I use my debit card, they do foreign transfers via the co-ops Tipanet system which is £8 flat and much cheaper than most other banks. And their customer service is good. I won't leave but I will be changing the way I use cards.
 
GCO - Have just drawn some Euros from the Post Office (lots of benefits including ability to cash them back without penalty) and was introduced to their new Travel Money card. Initial charge of £10 but then you can top it up as many times as you like and use it to draw foreign currency from most ATMs abroad. Saves carrying around wads of ickies or relying on normal credit/debit cards and the associated charges. Higher conversion rate if you load it with £500 min to start with. Worth looking here for further details.
 

Chaz

MIA
Naval_Gazer said:
GCO - Have just drawn some Euros from the Post Office (lots of benefits including ability to cash them back without penalty) and was introduced to their new Travel Money card. Initial charge of £10 but then you can top it up as many times as you like and use it to draw foreign currency from most ATMs abroad. Saves carrying around wads of ickies or relying on normal credit/debit cards and the associated charges. Higher conversion rate if you load it with £500 min to start with. Worth looking here for further details.

I recently heard this and thought 'that sounds good, can change my Euro's back for the same rate as I got when getting them initially'. Wrong! You can exchange them back without penalty (the without penalty being no commission). So you only get the 'we buy' rate and not the 'we sell' rate when changing your 'dib dobs'
 
Chaz said:
I recently heard this and thought 'that sounds good, can change my Euro's back for the same rate as I got when getting them initially'. Wrong! You can exchange them back without penalty (the without penalty being no commission). So you only get the 'we buy' rate and not the 'we sell' rate when changing your 'dib dobs'

Must confess Mrs N_G always seems to find a use for any euros left over so I've never had to change them back. Besides, the way our exchange rate is going, it would probably be best to hang on to them for future use.
 

Chaz

MIA
Naval_Gazer said:
Chaz said:
I recently heard this and thought 'that sounds good, can change my Euro's back for the same rate as I got when getting them initially'. Wrong! You can exchange them back without penalty (the without penalty being no commission). So you only get the 'we buy' rate and not the 'we sell' rate when changing your 'dib dobs'

Must confess Mrs N_G always seems to find a use for any euros left over so I've never had to change them back. Besides, the way our exchange rate is going, it would probably be best to hang on to them for future use.

Concur
 
jollysailor said:
try switching to the Nationwide. They dont charge for using your card abroad. :thumright:

Yes I saw that and nearly did, but they use Swift for transfers and thats about £15 a time I think. Overall I would still save money - I do one bank transfer a month and useD my debit card quite a lot, but I have decided to stick with smile and just NEVER use my debit card overseas.

Thanks for the post office tip.
 

jollysailor

Badgeman
I have never been charged extra for using my card abroad and the exchange rate is usually pretty good with them :thumright:
However with my lloyds cards i did pay an extra amount on both my credit and debit cards
 
jollysailor said:
I have never been charged extra for using my card abroad and the exchange rate is usually pretty good with them :thumright:
However with my lloyds cards i did pay an extra amount on both my credit and debit cards

If you have any CREDIT card other than a Post office card, Saga Card, Thomas Cook Card or Nationwide BS Gold then you are probably wrong. You don't see the charge as a separate amount (as you do when you withdraw cash - see my bank's reply), and as you say the exchange rate is good, but as far as I can work out every card except those above take their % cut on top of the exganhe rate - and its hidden from you.
 
This is the worst of the cards according to http://www.moneysavingexpert.com/cards/cheaper-spending-overseas :

"Let's make this plain - do not use the following cards for spending overseas; and it may surprise you to learn the worst offenders are all debit cards.

Halifax Debit Card
Spending penalty: £1.50. Exchange load: 2.75%. Cash Withdrawal fee: £1.50

Lloyds Debit Card
Spending penalty: £1. Exchange load: 2.75% (2.99% from 30/7/07). Cash Withdrawal fee: 1.5% min £2 max £4

IF Debit Card
Spending penalty: £1.50 Exchange load: 2.25%. Cash Withdrawal fee: £1.50 or 1.5%

RBS Debit Card
Spending penalty: £1.25. Exchange load: 2.75%. Cash Withdrawal fee: 2% min £2 max £5

NatWest Debit Card
Spending penalty: 75p. Exchange load: 2.65%. Cash Withdrawal fee: 2.25% max £4"
 
Good_CO said:
jollysailor said:
try switching to the Nationwide. They dont charge for using your card abroad. :thumright:

Yes I saw that and nearly did, but they use Swift for transfers and thats about £15 a time I think. Overall I would still save money - I do one bank transfer a month and useD my debit card quite a lot, but I have decided to stick with smile and just NEVER use my debit card overseas.

Thanks for the post office tip.

The reality is changing currencies is a real cash generator for those who do it, after all there are companies who only change money and seem to do quite well out of it. Equally cross border transfers are another cash generator for the banks.

Until we all use the Euro, and the EC does away with charges for cross border bank transfers so no one pays a penalty for spending their money in another country tha banks are going to take cash of you one way or another every time you do it.
 
Maxi_77 said:
banks are going to take cash of you one way or another every time you do it.

Of course. The point of this thread though is that the difference in how much they take can be very large. The difference in the Natoinwide debit card and mine is over 5%. Of course that may not bother you, but for people who spend a lot of time overseas (like many on RR I imagine) that difference is big.
 

Old_Hand

Lantern Swinger
Slightly off the track, but in the UK I use my Visa credit card to pay for most everything through the month and then ensure that I pay it all off on due date. That way we don't pay any interest and they give us cash back at end of year. Last December they gave us £79 back. Not much I know but always nice to get something for nothing. Not only that but by not paying my cash every time I buy something it is earning a bit of interest in the bank.
 
Thread starter Similar threads Forum Replies Date
trelawney126 Where can I get one of these Credit Cards The Gash Barge 1
TheAaronP Banking advice -Barclays Credit Cards! Joining Up - Royal Navy Recruiting 13
slim Credit Cards Finance & Pensions 4
MoD_RSS The Social Security, Child Benefit and Child Tax Credit (Amendment) (EU Exit) Regulations 2020 MoD News 0
MoD_RSS G7 Export Credit Agencies: virtual conference MoD News 0
MoD_RSS GAD helps develop support for the trade credit insurance sector MoD News 0
MoD_RSS Trade Credit Insurance backed by £10 billion guarantee MoD News 0
MoD_RSS Universal Credit: surplus earnings MoD News 0
MoD_RSS Government to support businesses through Trade Credit Insurance guarantee MoD News 0
MoD_RSS Pension Credit claimants now able to apply online MoD News 0
MoD_RSS Biggest number of new Universal Credit claims paid in a single day MoD News 0
MoD_RSS New video service for deaf claimants accessing Universal Credit MoD News 0
MoD_RSS Universal Credit claimants to verify identity through Government Gateway MoD News 0
MoD_RSS £10 million fund to help vulnerable people claim Universal Credit MoD News 0
MoD_RSS Chance to ‘win while you save’ with new credit union prize account MoD News 0
MoD_RSS Property and cleaning companies wound-up for abusing credit agreements MoD News 0
MoD_RSS Parents and guardians given extra time to claim back childcare costs with Universal Credit MoD News 0
MoD_RSS Directors banned for dishonestly securing £975,000 of credit MoD News 0
MoD_RSS News story: European Commission consultation on short-term export credit rules MoD News 0
MoD_RSS News story: New 'Help to Claim' service provides extra Universal Credit support MoD News 0
MoD_RSS Press release: Universal Credit pilot to launch in North Yorkshire MoD News 0
MoD_RSS News story: Abandonment of credit-score checking merger MoD News 0
MoD_RSS Press release: Amber Rudd sets out fresh approach to Universal Credit MoD News 0
MoD_RSS Speech: Universal Credit: personal welfare MoD News 0
J Loans for bad credit UK | low credit score | FleetQuid Finance & Pensions 1
MoD_RSS Press release: Merger of credit score firms could reduce competition in sector MoD News 0
MoD_RSS Press release: Universal Credit managed migration: reducing the risk to claimants MoD News 0
D Poor credit history Joining Up - Royal Navy Recruiting 5
S National Security Vetting - credit check Joining Up - Royal Navy Recruiting 12
trelawney126 RAF takes the Credit for Cuban Crisis History 43
soleil Pompey News: "Royal Navy Officer Guilty Of Misusing His Government Credit Card" Current Affairs 66
O Credit Crunch Miscellaneous 0
D Credit Checks Joining Up - Royal Navy Recruiting 14
I Pension credit in Civvy Finance & Pensions 4
D Bad credit rating Joining Up - Royal Navy Recruiting 4
sgtpepperband The credit crunch, explained... Finance & Pensions 6
slim Cardinal blames the credit crunch for a 'breakdown' in trust Current Affairs 13
The_Jimmy UK Credit Crisis Current Affairs 9
B For those worried about the Credit Check or the finical Ques Joining Up - Royal Navy Recruiting 11
Jarhead A credit to the USMC and Britain... The Corps 22
B navy credit check Joining Up - Royal Navy Recruiting 6
MoD_RSS New veterans ID cards rolled out to service leavers MoD News 0
MoD_RSS 6-year ban for greetings cards boss MoD News 0
MoD_RSS News story: New veterans ID cards rolled out to service leavers MoD News 2
MoD_RSS News story: Alert for charities – risk of CEO fraud through Christmas gift cards MoD News 0
M ID Cards for Veterans The Gash Barge 80
M ID Cards to go alongside Veterans badges Petitions 82
M ID Cards Joining Up - Royal Navy Recruiting 62
BillyNoMates RR Christmas cards Diamond Lil's 7
scouse Rail cards heads up Diamond Lil's 0
Similar threads


















































Latest Threads

New Posts

Top