Abbey Zero - Low Exchange rates!

malc_b

I got the new Abbey Zero as a backup for my Nationwide. Both say no hidden transaction fee when abroad. I used in Spain recently. Abbey Zero, 14/7, one at 0.8035 and a larger sum at 0.8033. The next day I used my Nationwide, 15/7, 1.257426 (=0.795275). That is a difference of 1%. According to GBP/Euro history the exchange rate moved 0.1-0.4% betwen those two days depending on which web page you look at.

I wish I'd used the Nationwide card on the same day to have an exact comparison but I still think this is rather suspicious. It seems a big jump for one day. I remain to be convinced that the Abeey Zero is as good as Nationwide. The next time I go on holiday I use both on the same day but for now Nationwide remains my card of choice.

YorkshireBoy

Is one Mastercard and the other Visa?

Might explain the variation.

Biggles

The problem is, the rate is taken as at the moment it is processed by Visa, not the date of the transaction, so they could be more than that one day apart, depending on the system used by the retailer/bank.

ManAtHome

Might just be a timing thing as Biggles suggested - rate did move nearly 1% between 14th and 17/18th (I looked on Oanda http://www.oanda.com/convert/fxhistory )

HamiltonL

YorkshireBoy wrote: »

Is one Mastercard and the other Visa?

The entire Abbey Zero fleet is Mastercard.

malc_b

It could just be bad timing or a visa/master card difference (but if Visa has a higher rate then Nationwide visa is still the better option). 0.8033 is 1.24486 in the way Nationwide do it, Euros to the pound. Nationwide CC gave me 1.257426 on 15th. For the rest of the holiday I used cash from the ATM. The rates from that were:

19-Jul-08 1.259
21-Jul-08 1.257
22-Jul-08 1.26
23-Jul-08 1.272
26-Jul-08 1.267
27-Jul-08 1.267
27-Jul-08 1.267

There was a steady rise so perhaps it was timing. Next time I go on holiday I'll use both on the same day for a more accurate compare, BUT it still seems a big jump for one day to me. From 19-27 the ATM rate changed by 0.6%. 1% in one day looks too large to be just day to day variation.

exel1966

To show some variations in the rate a sample taken from using a PO Mastercard overseas a couple of months ago ;-

14 may 08 1.2596 at best with 6 transactions made
14 may 08 1.2467 at worst

more interestingly 12 transactions made 23 - 26 May (Bank Hol weekend). All transactions processed at 1.2500 meaning rates are NOT updated (or an average is used) during weekends !!!

Variation between 14 and 27 May ;-

Best 1.2673
Worst 1.2467

JoseChungsDoomsday

forget oanda, visa will tell you their exchange rate

http://www.corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp

Richard019

exel1966 wrote: »

more interestingly 12 transactions made 23 - 26 May (Bank Hol weekend). All transactions processed at 1.2500 meaning rates are NOT updated (or an average is used) during weekends !!!

Variation between 14 and 27 May ;-

Best 1.2673
Worst 1.2467

I thought the rate was taken when it is applied to your account rather than when the transaction was made?

Am I being too simplistic in thinking that transactions during the week could come through at any time but ones at the weekend would all wait until Monday morning before being sent by the foreign bank? With our banks then being on Bank Holiday they would be held until the Tuesday morning before all being applied, and thereby incurring the same charge for all transactions as they were at the same time.