The Cheapest Way to Spend Overseas Discussion Area

iwanttosave_2

Hi.

Just wanted your input, going on the jollies soon and have seen in the co-op those prepaied visa card things, you dont need to pay a conversion fee just the fee to withdrawl cash, apparently they are safer than travellers cheques and I can also have an additional card for OH. To me it seems like a good deal.

Anyone know about this, are they as good as they seem?

tobys_mummy_2

pin wrote:

Its been asked soo, soo many times, where is the best place to get holiday money?

I know there are articles about holiday money, etc, however I thought I would write a little list of my top choices:

1. Nationwide Debit Card for ATM withdrawals from destination country / Nationwide Credit Card for purchases in destination country (but watch out for Dynamic Currency Conversion).

2. Any other debit card for ATM withdrawals from destination country / any other credit card for purchases in destination country (but for both CHECK T&C's to see exact charges).

3. Thomas Exchange Global in central London: https://www.thomasexchangeglobal.co.uk

4. Travelex online: https://www.travelex.co.uk (remember Travelex will price match any other exchange service)

5. Marks and Spencer

6. Thompson Travel (they seem to use Amex as their travel money provider)

7. Post Office

With 3 - 7, if you are paying with debit / credit card check your T&C's as many providers charge for the priviledge of using money exchange services.

i thought the nationwide credit card didn't have a currency conversion rate? am i mistaken?

ManAtHome

It doesn't in Europe, but some retailers/hotels etc are pulling a scam... In theory, they're supposed to offer you local currency (Euro) or 'home' currency (Quids). For most cards, this doesn't make a great of difference as there is a similar currency conversion charge (around 2.5%) from Euros to Sterling. As Nationwide don't levy this charge, you end up paying extra if you're charged in local currency - they apply the conversion charge then it comes through to N/w as a sale in Sterling.

Hope that all makes sense..

tobys_mummy_2

so if i am charged in euros there will still be a charge when i use my nationwide credit card, but if i am charged in sterling there won't be?

ericpode

I thought it was the opposite way about.

You want them to bill you in their LOCAL currency (as they would do for any of their indigenous customers). Then it is the credit card company that does the currency conversion to arrive at the pounds sterling figure on your card statement, and charges you for the conversion. As Nationwide do not charge for this conversion you don't pay anyone any currency conversion fee.

If the retailer bills you in pounds, then the retailer does the conversion to pounds at the point of sale, and they charge you a currency conversion fee for the priviledge which you of course have to pay for no matter what credit card you hold. For nearly all credit cards this doesn't matter as it is just the retailer charging you for conversion rather than the card company; but if you have a Nationwide card who charge nothing then you are losing out if you let the retailer do the conversion.

I think the idea is that the retailer gets a cut of the conversion fee and that's why they are so keen to bill you in pounds sterling. I have seen comments in other threads where retailers have claimed that they don't know how to bill the holidaymaker in local currency!!

hammy_the_hammer

correct ericpode

delorean_2

Go to http://www.baa.com/worldpoints

Use your card at the airport and get your cash comission free. Plus earn reward points.

hammy_the_hammer

delorean wrote:

Go to http://www.baa.com/worldpoints

Use your card at the airport and get your cash comission free. Plus earn reward points.

so how does the BA rate compare to Pins list ?

pin

hammy_the_hammer wrote:

so how does the BA rate compare to Pins list ?

Poorly is the word. You can't get BAA points (or BA points) if you use the Travelex online ordering facility, you have to buy them direct at the airport, where the rates are poor.

ericpode

Someone mentioned this on the motley fool site. If it's correct it may be worth adding to the Marks and Spencer item in the list:

The M&S & More credit card can be used at M&S bureaux de change without commission or fees. Foreign currency purchases are treated as a normal purchase so you get probably the best rate on the high street plus upto 56 days credit!