Using credit cards overseas

hansi

Here's a conundrum for all you curency exchange specialists. Hope you can help me with this query. I use a Nationwide credit cards for overseas purchases because of the benefits involved. Recently, I made some purchases in Jamaica and they asked if I wanted to pay in US dollars or Sterling. The price quoted was $25 or £15. I opted for dollars, but because of the exchange rate, I checked my account online and found that I had been charged nearly £17, so in this case I should have opted for Sterling! Now, I cruise frequently on ships which use dollars as on board currency and usually opt to be billed in dollars using my Nationwide card. They also offer a service whereby they convert the dollars to sterling but charge 3% for doing so. Financially, which would be the most favourable option for me to use? Should I go for dollar charging or sterling on the Nationwide card? Thanks.

hansi

Anyone please?

CLAPTON

Visa/Mastercard exchange rates often vary by the day
Nationwide use the official exchange rate
specific companies can charge what they like
usually converting to sterling means they load the exchange rate to increase their profit but it depends upon the circumstances
but the only real way to know is to buy a calculator

hansi

Thanks, but that hasn't really answered my questions. Should I use dollars or sterling for my transactions?

treb1971

Pay in the local currency - so in the US, pay in US Dollars.
If you choose to be billed in Sterling, the exchange rate used is - as a rule - less favourable than the normal way.
All the newspapers warn against using Dynamic Currency Conversion, as it is called. And since you have a Nationwide card and don't pay fees for overseas txns, you should be better off...`

JohalaReewi

hansi wrote: »

I cruise frequently on ships which use dollars as on board currency and usually opt to be billed in dollars using my Nationwide card. They also offer a service whereby they convert the dollars to sterling but charge 3% for doing so. Financially, which would be the most favourable option for me to use?

Nationwide card. No commission for doing the conversion (ship charge 3%). Instant saving. The exchange rate the ship uses is not likely to be better than the one used by Nationwide and if it was, it would have to be more than 3% better to offset the commission charge.

dzug1

Normally pay in $$.

Sounds like you came across a retailer who was for whatever reason offering a ridiculously good exchange rate. It won't happen often. I suspect he just got it wrong.