UK Credit card using less than current Exchange rate for US based purchases
Comments
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Santander say its not their issue - but rather MasterCard.0
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Bevereeno78 wrote: »To round things up - a $5 cup of coffee should be 3.8UK pounds. On their credit card this would now be charged at 6.6UK pounds. Why can MasterCard or Santander be able to use a different UK to USD rate than the actual one?
The way you word this sounds like it's an example of what "would" happen rather than what "did" happen.
Is this a example transaction on their card?
Santander tell you what the rate on the transaction was too. Please post the amount of transaction in USD, GBP and the exchange rate!
I doubt it would be wrong, it's more than likely you've mis-understood the exchange rate (e.g. 1USD to x GBP rather than 1GBP to xUSD).0 -
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Can you post exactly what it says on the statement. If he has taken a 'bad' card, ie one that charges foreign transaction fees then this could be the problem.0
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True, but the OP has not said which Santander card his "friend" has used.stevenhp1987 wrote: »Depends which Santander card. Santander 123 & Santander Zero credit cards offer 0% foreign exchange fees.
Perhaps his friend should join the forum?0 -
Bevereeno78 wrote: »To round things up - a $5 cup of coffee should be 3.8UK pounds. On their credit card this would now be charged at 6.6UK pounds.
Either you or your friend have misunderstood which way round the conversion rate works. 5 dollars at a conversion rate of 0.7 gives you £3.50. If you divide 1 by the rate you are quoted it will give it to you in the alternative format. They are two different ways of expressing the same thing, depending which way you are making the transfer.
We don't want you to round things up - or to tell us what it would be. You need to give us an example of what it actually was in exact figures.0 -
18 posts and we still don't know what was written on the statement or precisely which credit card was being used.0
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Here is the Mastercard exchange rate:
https://www.mastercard.co.uk/en-gb/consumers/get-support/convert-currency.html
Some cards do not add a bank exchange fee, but most do. That fee is somewhere between 2.5 and 3%. Since a few years banks are required to show the exchange fee as a separate amount. Previously the fee was muddled into the charge.
As of today's rate, a charge or USD 100 would convert into GBP 76.66. If an exchange rate of 3% is taken, that would be an extra GBP 2.29, bringing the total cost up to GBP 78.95.0 -
Thanks for the replies - even the sarcastic ones.
What I'm trying to understand - and failing to see why this is so difficult for others to comprehend....
Why can Santander/MasterCard charge a different conversion rate per charge than the ACTUAL amount? The UK Pound to US dollar has never been 0.7 nor even close.0 -
Are you sure you're not able to post an example of a real transaction from the statement?
It would make this so much clearer, much more so than your theoretical cup of joe..0
This discussion has been closed.
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