The Cheapest Way to Spend Overseas Discussion Area

budgetflyer

I used M+S online this weekend. The rate was marginally less than Travelex. (difference was not worth worrying about 35p in 500 Euro) delivered free to my door.Very impressed with service. No charge with BOS Visa Debit Card

comping_cat

Something to check before using your credit card/debit card abroad is that it wont be refused the first time you try to use it. Lots of card providers will put a block on your card the first time it is used abroad, meaning you could be embarassed by having it turned down and have to ring them to inform them everything is ok. I have a Tesco card, and rang them, but they told me they cant remove this blocking until it has been used, so i have told them i will not be using it then!!!!! When i went away 3 years ago, i had a similar problem with my debit card, but luckily it was refused due to a large, unusual transaction (which was me collecting my holiday money from the post office) and so they were able to remove the block before we went! I will be checking again this year before we go, and glad i rang Tescos as well, it must be terrible to have your card refused in a foreign country.

pin

Nationwide are quite good about this, however I do call them up before I go away anywhere, so they are on notice.

tobys_mummy_2

Yesterday when i checked visa's exchange rate was 1.45, however thomas global exchange were only offering a currency exchange rate of 1.43 euros. does this mean if i had been in spain yesterday and used my debit card at an ATM i would have got the rate of 1.45 euros? And is this way of getting money always better than exchanging money before you go?

pin

tobys_mummy wrote:

Yesterday when i checked visa's exchange rate was 1.45, however thomas global exchange were only offering a currency exchange rate of 1.43 euros. does this mean if i had been in spain yesterday and used my debit card at an ATM i would have got the rate of 1.45 euros? And is this way of getting money always better than exchanging money before you go?

The difference is the "spread". This is where the currency exchange people make their money. The visa rate is the "wholesale" market rate.

From the ATM that is the Visa rate BUT your card provider may (and most will) charge extra on top of that.

tobys_mummy_2

pin wrote:

The difference is the "spread". This is where the currency exchange people make their money. The visa rate is the "wholesale" market rate.

From the ATM that is the Visa rate BUT your card provider may (and most will) charge extra on top of that.

i am going to get a nationwide debit card so they shouldn't charge on top should they? So what you are saying the wholesale market rate is always going to be better than the rate the currency exchange people offer?

hammy_the_hammer

yes that's correct

pin

tobys_mummy wrote:

i am going to get a nationwide debit card so they shouldn't charge on top should they? So what you are saying the wholesale market rate is always going to be better than the rate the currency exchange people offer?

Wholesale rate is always going to be better than consumer rate (for obvious reasons).

Visa doesn't offer quite wholesale rates (it does take a cut from the wholesale market to which it offers to the card providers, but that rate is still so much better than the consumer rate). Most card providers add an extra percentage of that to its consumers. Nationwide does not.

Full FAQ of how Visa deals with curreny exchange is here:

http://www.corporate.visa.com/pd/consumer_ex_faq.jsp

Also, no offence to you tobys_mummy, but this has been dealt with ad infinitum on MSE. I suggest you do a search and you will see (however in all fairness I have to admit the search function on MSE is poor at the best of times). Also I suggest you read the many articles that Martin has written on foreign spending, all available on this site.

hammy_the_hammer

"Also, no offence to you tobys_mummy, but this has been dealt with ad infinitum on MSE"
and more !!!!!!!!!!!!!!!!!!!!! lol

u2o

Hi all

I know that there's loads of nationwide card using abroad threads right now but theres one thing im still wondering.

Would i get a better deal if I go and buy Euros from M&S highstreet (the best place i find) or would it be better to take advantage of nationwide's non-tourist exchange rate and just use the card abroad? I have a cirrus card (no debit)

thanks