The Cheapest Way to Spend Overseas Discussion Area

trevorh

Please see my post 402. At the time I was unaware that I was suffering from Dynamic Currency Conversion which has been mentioned before on this thread.

Basically for Nationwide credit/debit cards you must ensure that you are paying in the local currency (either for credit cards purchases or drawing out cash on your debit card) otherwise your purchase/withdrawal will be charged at the local banks exchange rate which is **** poor and includes something like 2% commission.

If you look at your receipt when drawing cash or your credit card slip it will probably tell you this but its a bit late then.

I'm currently claiming Nationwide on the basis that I wasn't told that I was going to 'enjoy' this poor exchange rate before paying and I'll let you know how I get on.

The same principle probably applies to other cards which do not charge for use abroad.

Trevor

ceejayblue

It all makes sense now. Next time I'll remember to click on euros and not sterling. Thanks for the advice.

Chris

Donnie

trevorh wrote: »

Please see my post 402. At the time I was unaware that I was suffering from Dynamic Currency Conversion which has been mentioned before on this thread.

Basically for Nationwide credit/debit cards you must ensure that you are paying in the local currency (either for credit cards purchases or drawing out cash on your debit card) otherwise your purchase/withdrawal will be charged at the local banks exchange rate which is **** poor and includes something like 2% commission.

If you look at your receipt when drawing cash or your credit card slip it will probably tell you this but its a bit late then.

I'm currently claiming Nationwide on the basis that I wasn't told that I was going to 'enjoy' this poor exchange rate before paying and I'll let you know how I get on.

The same principle probably applies to other cards which do not charge for use abroad.

Trevor

Take note that if Nationwide does compensate you in this event, it is a purely goodwill payment.
It has nothing to do with Nationwide that you have been affected by DCC.
Apart from the fact that it is prominently displayed on their website that one needs to be careful of this practice by overseas banks, they have no control over you not reading the warning on the screen of the foreign ATM.

So be nice and they may well help you.

AmandaB_4

benoz2000 wrote: »

It would appear from the article that Nationwide provide the best credit card for overseas transactions, but where they fall down is the interest charges even if the balance is repaid in full immediately.

If I pay a large amount onto my credit card before leaving the country, and then spend this, (like charging my credit card before use). Would this avoid there high interest rates?

Thanks for any help

I too are about to go to Oz and have been looking at Nationwide cards. Almost everything I have read says that Nationwide are by far the best.However I have been looking into it today and found that Nationwides exchange rate is much lower than Barclays and HSBC. For example HSBC exchange rate for the AUD today is 2.55 whereas Nationwides is 2.2.

HSBC charge 1.75 pounds or 1.75% (whichever is highest) on debit card withdrawels and this plus a 2.75% foreign exchange fee for credit card purchases. Which means that with their better exchange rate they are actually cheaper...so are we all flocking to Nationwide on a false pretence?

I don't know a lot about these things so if I'm missing something I'd love to know!

AmandaB_4

trevorh wrote: »

Please see my post 402. At the time I was unaware that I was suffering from Dynamic Currency Conversion which has been mentioned before on this thread.

Basically for Nationwide credit/debit cards you must ensure that you are paying in the local currency (either for credit cards purchases or drawing out cash on your debit card) otherwise your purchase/withdrawal will be charged at the local banks exchange rate which is **** poor and includes something like 2% commission.

If you look at your receipt when drawing cash or your credit card slip it will probably tell you this but its a bit late then.

I'm currently claiming Nationwide on the basis that I wasn't told that I was going to 'enjoy' this poor exchange rate before paying and I'll let you know how I get on.

The same principle probably applies to other cards which do not charge for use abroad.

Trevor

I have been also been looking into exchange rates today and found that Nationwides own exchange rate seems to be quite poor. HSBCs exchange rate for the Australian Dollar today is 2.55 whilst Nationwide is 2.2...which means it's actually cheaper to pay the charges on the other cards! I know that exchange rates change but this is a bit difference.

dzug

AmandaB wrote: »

I have been also been looking into exchange rates today and found that Nationwides own exchange rate seems to be quite poor. HSBCs exchange rate for the Australian Dollar today is 2.55 whilst Nationwide is 2.2...which means it's actually cheaper to pay the charges on the other cards! I know that exchange rates change but this is a bit difference.

Something wrong there - that 2.55 is a buying rate, I'm pretty sure, not a selling rate, given that the interbank rate is 2.39 or so. The selling rate will be less - say 2.25.

How did you get these rates? Are they for cash in branches? If so you are not comparing the right things.

In any case, on card transactions Nationwide (and HSBC and Barclays and all the rest) do NOT set the exchange rate. They get it from Visa or Mastercard. It's what they do with it afterwards that matters.

dlevene

Hi

Like others I didn't get the Visa Debit card for the NW Flexaccount, I got the cashcard. I know it incurs no load/withdrawal charge, that it can't be used in shops, and that it can only be used with Cirrus cashpoints (which are pretty universal, right?).

All that's fine, but what about exhange rate? Does it use the Mastercard rates, and if so, where can I find them (they're not on the MC website)? Thanks very much!

moob_2

Read through quite a lot of this thread, but unfortunately still have questions - sorry!

If I were to get a Nationwide Debit Card to take to the states, what rates do they actually use when the transaction is made? Is it, as I think I understood earlier in the thread, the rate provided by the major credit cards? If so, is this rate significantly better than that provided when buying currency here in the UK, assuming no commission charges?

I guess what I'm really looking for is clarification on whether it would be better for me to get a N-wide card to take abroad and use at charge free atms, rather than buying a bundle of travellers cheques, assuming no significant change in exchange rates.

tiff

The rate you get with the NW card is better than you would get using normal credit cards as they dont load the currency exchange rate.

moob_2

tiff wrote: »

The rate you get with the NW card is better than you would get using normal credit cards as they dont load the currency exchange rate.

I digged about a bit and found out that they use the wholesale exchange rate - which I believe is the best you can get. Correct me if I'm wrong?