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Something interesting on nationwide.co.uk
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newfoundglory
Posts: 1,912 Forumite
in Credit cards
It continues...Important information about overseas card payments
When using your credit or debit card abroad, insist on paying in local currency.
I remember reading a number of people were having problems, especially in Europe, with it being convered to sterling at an uncompetitive rate before being charged to the card. Looks like you need to state upfront when handing over your plastic abroad to avoid this...We don’t charge commission on any of your purchases, making the Nationwide credit card your perfect travelling companion. However, some shops may ask you to pay in sterling and may apply currency exchange and commission rates which are unfavourable. Where the currency exchange is managed by the shop we are prevented from handling the money on your behalf, therefore we recommend you always pay in the local currency.
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This problem relates to every bank/BS. It looks like NW are the first who warn customers about it.newfoundglory wrote:Something interesting on nationwide.co.uk ...
Especially in Spain. Actually 'shops may ask you to pay in sterling' that is being converted to local currency at an uncompetitive rate....especially in Europe, with it being convered to sterling at an uncompetitive rate ...
...and to have cash ready (withdrawn from local ATM) to pay instead of paying by card.Looks like you need to state upfront when handing over your plastic abroad to avoid this...0 -
Actually, i'm not sure it does apply to other banks. Surely if you have to pay 2.75% with other banks you might actually be better off having it converted to sterling before having it charged to your card!?!?
I don't think if you are paying by visa, and the shop accepts visa, that they can *insist* you pay in sterling... I don't think visa rules allow that...0 -
You are quite right, newfound. And doubtless that is why the foreign companies (or more likely their merchant acquirers) have twigged that they can skim off the 2.75% rather than your own credit card operator getting it. Most people won't even notice the difference and will maybe think it's better to be charged in sterling, as at least they know immediately how much they will see on their card statement.
It's only where the card operator charges less than the "standard" 2.75% that this becomes an issue.0 -
newfoundglory wrote:Actually, i'm not sure it does apply to other banks. Surely if you have to pay 2.75% with other banks you might actually be better off having it converted to sterling before having it charged to your card!?!?...
This is correct unless 'local' fee for convertion into sterlings is more than 2.75%. However, there were reports that this 'fee' coold be higher. For example, 0.05/1.40=3.6% in ' Credit Cards Abroad ' thread. I also remember post reporting 8p difference for euro.MarkyMarkD wrote:... And doubtless that is why the foreign companies (or more likely their merchant acquirers) have twigged that they can skim off the 2.75% rather than your own credit card operator getting it. Most people won't even notice the difference and will maybe think it's better to be charged in sterling, as at least they know immediately how much they will see on their card statement.
It's only where the card operator charges less than the "standard" 2.75% that this becomes an issue.
Usually they ask to sign something like " I accept that I have been offered a choice of currencies for payment " on the payment slip. However, usually you have no choice. This was reported also in the following threads:newfoundglory wrote:I don't think if you are paying by visa, and the shop accepts visa, that they can *insist* you pay in sterling... I don't think visa rules allow that...
Credit card currency conversion rate
Cheapest way to spend overseas discussion posts #21, #38
credit card exchange rate in Spain0 -
A friend of mine was going on about this after I told her about this thread. I don't think I've experienced it personally.
The other threads I've seen online (now) do suggest that there should be a choice but it depends how easy you find to insist. The software (shown on at least one of the DCC sites) definitely says "was the customer happy for DCC to apply?" with a YES/CANCEL and if NO it would presumably proceed in the country's own currency.0 -
This may be prevalent in Spain but I also found it quite common in Eire.0
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I contacted VISA about this after experiencing problems in Spain. Visa said that according to their rules the retailer should give the customer a choice re the DCC.
When I was in Spain, I did query the DCC with the retailer (in this case a hotel). They did not do anything about it, I got into a heated "discussion" but the hotel wouldn't budge. I was running late for my plane, so had to leave it be. This was back in December, don't know if the situation has improved since then.
In March had the same problem in Thailand (again at a hotel). However this time I asked them to re-issue the bill in Thai Baht, they did so without any fuss and were very apologetic. They told me the software on their payment machine would automatically conduct a DCC based on the country where the customer's credit card was issued."An eye for an eye leaves the whole world blind" - Mahatma Gandhi0 -
Nationwide will give you a credit card sized piece of glossy cardboard that explains what Dynamic Currency Conversion is on one side in english.
On the reverse it reads
Spain - A Puedo pagar con divisa local, por favor.
France - Je voudrais payer en devises du pays, s'il vous plait.
Italy - Vorrei pagare con la valuta locale, per favore.
(I'm quite looking forward to a large trolly of goods going through the till and then seeing if the "muppet" can charge for them in Euro on the credit card machine. My bet is that she cannot, thus breaking European law. If I don't get the right legal result I will leave the goods and walk out. I will let you know the outcome when I get home).
Mary.
Nationwide staff, in your local branch, may need to be educated about Dynamic Currency Conversion too - perhaps they should read moneysaving expert too.0 -
Well, I was caught in May this year when shopping a digital camera in HK. In the receipt which I signed it did said that I was agreed to use their conversion rate. I was so annoyed, I was not informed by the shopper. And when I signed the receipt, I only check the HKD figure, in fact, it also gave the GBP figure at the bottom. But the rate is around 2% lower than the cash I got from the ATM using a nationwide debit card. A good lesson for myself, no matter how busy in the shop, just check the receipt carefully before you sign it. Or now, check the amount in the machine before you enter your pin.0
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