📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Euro's or pounds?

Options
wenders1
wenders1 Posts: 1 Newbie
in Credit cards
When paying abroad I'm often asked if I want to pay in euro's or pounds on my credit card, which is best?

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    euros... otherwise the exchange rate is awful
  • dylanuk
    dylanuk Posts: 516 Forumite
    You should pay in the local currency whenever possible.

    Otherwise, if you pay in pounds sterling abroad - it's called dynamic currency conversion and can cost you around 4% transaction charge: http://www.credit-card-comparison-online.co.uk/faq/use-abroad/dynamic-currency-conversion-charge.html

    Compared to paying a 2.75% foreign fee - and even with currency conversion - it's still cheaper to pay in the local currency.

    Especially more so if you have a credit card thats cheap to use abroad, i.e. waives any foreign commission fee, like Nationwide or the Post Office.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    dylanuk wrote: »
    If your credit card is from the UK you should pay in pounds sterling if you can.

    Otherwise, if you pay in any other currency (e.g. a local currency when you are abroad) - it's called dynamic currency conversion and can cost you around 4% transaction charge: http://www.credit-card-comparison-online.co.uk/faq/use-abroad/dynamic-currency-conversion-charge.html

    Compared to paying a 2.75% foreign fee - and even with currency conversion - it's still cheaper to pay in pounds sterling.

    Especially more so if you have a credit card thats cheap to use abroad, i.e. waives any foreign commission fee, like Nationwide or the Post Office.


    I would respectfully suggest you reread the article you refer to

    Its recommendations are that you pay in local currency NOT UK currency.
  • dylanuk
    dylanuk Posts: 516 Forumite
    Sorry, my bad :o

    Thanks for correcting me Eric!
  • Inactive
    Inactive Posts: 14,509 Forumite
    CLAPTON wrote: »
    euros... otherwise the exchange rate is awful


    Agreed, also if using an ATM for cash withdrawals in Spain, be very careful, they are cleverly worded to suggest that you use their bank exchange system, just remember to hit the " NO " button when asked.
  • nomoneytoday
    nomoneytoday Posts: 4,871 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If you have a Nationwide / Abbey / PO / Saga credit card then pay in euro.

    If you have another card it may make sense to pay in GBP as the rates used by them have a charge of up to 3% + £1.50 on top...
    The EUR rate locally will usually have a 2% charge built into the rate...
  • KTF
    KTF Posts: 4,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    dylanuk wrote: »
    Sorry, my bad :o

    Thanks for correcting me Eric!
    I would recommend you edit your original post to remove the incorrect information.

    You should always pay in local currency and ask them to change it if they offer you a total in pounds.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.3K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture