Credit Cards Abroad Article Discussion Area

MSE_Martin

Student100 is spot on. Completely correct it is the currency not the location that counts.

While I'm on just to say next week i've a fully updated version of this article. I've also collated the loading and fees on debit as well as credit cards - so watch this space

Martin

mrtickle

Wonderful, thanks. Thought that was the case but wanted to make sure. For people who order over the internet a lot, it could save quite a lot of money

student100

Firstly, before anyone says anything, I tried applying for a Nationwide CC but was rejected (poor student...) & Lombard Direct wouldn't let me apply (poor student... )

Does anyone happen to know how the Mastercard/Visa exchange rate (buying in USD) compares with the interbank rate (If I add a 2.75% loading to the interbank rate is that close enough to the Visa/MC rate?)

Basically, I'm going on an exchange work program to the US this summer. I have to take at least $400 in travellers cheques (or cash) as a visa requirement. I am wondering whether the credit card exchange rate, even when you apply the 2.75% loading, will still beat the rates I can get for Amex travellers cheques (the best I have found is the Halifax, I'm a customer so they have no commission, but the rate is 1.71759 (compare with 1.77080 interbank rate, the Halifax rate effectively has a charge of 3.1%).

If it works out that taking Travellers cheques is cheaper than using MC/Visa, then I'll take more than $400.* Otherwise I'll use my Accucard MC (the 0.8% cashback will offset the loading a little bit too!) So if anyone knows how the Visa/MC rate really does compare with the interbank rate, I'd be greatful for the info.

If you have no idea what I'm talking about, I don't blame you. I'm not sure if I understand myself now! ::)

*of course there's the gamble that the exchange rates will change between buying travellers cheques and actually spending in the US, but you've got to take some risks!

MSE_Martin

Right Student 100 - let's work this out

The other day

In a spot test, on a day when E1750 would cost £1,230 at the Post Office bureau de change, the same spending on Nationwide’s credit card would cost just £1,170 – sixty pounds less.

Now the premise works the same for dollars and I did also check Amex where it would've been £1,232+£2 commission ie. £1,234

In other words this is 5% more expensive - so with loading only you should still be better off, but once the cash withdrawal fees are added in (and in the US you have both the card companies fees and the banks fees) it becomes much of a muchness. So if you can spend on your CC you should be better off - but if you need cash you will probably be better off with the TCs.

In other words - mix n match seems the best plan!

jg

Right. You are ahead spending on your credit card vs. traveler's cheques, at least at the rate you are being offered for the cheques.

Probably not ahead for cash withdrawals.

So you want to plan on, as much as possible, using your credit card for spending while there.

But you also want to use up any cheques you take with you, or you have the expense of selling them back to the bank when you get back -- will they buy them back at the same rate? I doubt it, they'll probably load the other way, and you'll get hit both ways.

student100

Yep, I wasn't planning on using the CC to get cash on, only for purchases (and virtually everywhere in the US takes credit cards anyway don't they?). I'll keep the travellers cheques for times when I really need cash, and then spend any leftovers just before I come home.

Thanks for your help Martin!

System

student100

You didn't say if you had applied for a Nationwide Flexaccount.
Even if you don't obtain the full account they will probably offer you the cashcard account. Whilst you only be able to withdraw cash from machines using the Cirrus/Maestro logo, you will still benefit from the zero loading policy.

System

A point not mentioned thus far, is the Liverpool Victoria CC's paying of interest on credit balances.

Interest paid on Credit Balances (Gross p.a.)
Up to £500:
Bank of England Base Rate less 0.75%
Over £500:
Bank of England Base Rate less 0.25%

System

Hi, Great site can you help with my query?
I am currently due to move my credit card (discounted rate expires on my Halifax Platinum soon)

I am going on holiday to Turkey in June and want a card that obviously offers 0% rate along with the best for foreign transactions (both cash withdrawls and card purchases.)

I will not be able to repay in full these transactions upon my return home. Is the Nationwide card still the best in these circumstances?

Your advice would be appreciated.
John

System

;DNationwide flex account debit card is the tops .
I've had one for about 5 years and have used it in the USA 3 times, the Canaries (twice) and Holland.
I have never bought travellers cheques or foreign currency in the UK.
Every airport that I've been to has an ATM :Dso Wifey and me make a beeline to get local cash for Taxis etc, then pay for just about everything with our cards. 8)
If using ATM's for cash abroad Wifey >:(stands behind me whilst I take out the cash, just trying to be careful, we do the same in our local town center anyway