Tesco Clubcard Credit Card

YorkshireBoy

I don't believe the fee is itemised separately on your statement. Instead, it's lumped in with the transaction itself, ie

Assume:

The interbank exchange rate used is one dollar to the pound (but you won't know this)
The Hotel room costs £100$

Then your statement will show...

Madison Square Garden Hotel.................£102.75
Exchange rate used: £1 = 0.9732$

robertoefc

YorkshireBoy wrote: »

I don't believe the fee is itemised separately on your statement. Instead, it's lumped in with the transaction itself, ie

Assume:

The interbank exchange rate used is one dollar to the pound (but you won't know this)
The Hotel room costs £100$

Then your statement will show...

Madison Square Garden Hotel.................£102.75
Exchange rate used: £1 = 0.9732$

Hmm. A little confused now!

Is this just an example?

How do I find out what exchange rate they use? At the moment $100 dollars exchanges at £59.83, so would I be right in thinking that it would appear as £59.83 +2.75%? (= £59.86) ?

YorkshireBoy

robertoefc wrote: »

Hmm. A little confused now!

Is this just an example?

Yes. I thought it wise to use some numbers that you could perhaps understand better.

How do I find out what exchange rate they use?

I think a google search will turn up the current, and past, exchange rates on a given day for both Mastercard and Visa. However, don't you think you're making this a bigger problem than it actually is?

At the moment $100 dollars exchanges at £59.83, so would I be right in thinking that it would appear as £59.83 +2.75%? (= £59.86) ?

No, you'd be wrong! If it's £2.75 per £100, how can it add only 3p to £59.83? Try some new batteries in the calculator, or ask someone with smaller fingers to help.

robertoefc

YorkshireBoy wrote: »

Yes. I thought it wise to use some numbers that you could perhaps understand better. ;)I think a google search will turn up the current, and past, exchange rates on a given day for both Mastercard and Visa. However, don't you think you're making this a bigger problem than it actually is?No, you'd be wrong! If it's £2.75 per £100, how can it add only 3p to £59.83? Try some new batteries in the calculator, or ask someone with smaller fingers to help.

Ahh. So the foreign exchange fee (2.75%) goes on the transaction - i.e. 2.75% of the $100? Think I'm slowly getting there! So it would work out as $102.75 and then they convert it to £ using their own as you say interbank exchange rate?

So basically, are we talking an extra few £ at most on a transaction of that size? Nothing at all to worry about?

YorkshireBoy

Yes, yes, yes, and yes (in that order).

2.75% is £2.75 per £100...£27.50 per £1,000. Still cheaper than changing cash before you go, but not as cheap as using one of the other cards in the article I linked to earlier.

robertoefc

YorkshireBoy wrote: »

Yes, yes, yes, and yes (in that order).

2.75% is £2.75 per £100...£27.50 per £1,000. Still cheaper than changing cash before you go, but not as cheap as using one of the other cards in the article I linked to earlier.

Right, thanks for your help mate.

I'll be using the card to book the hotel, and book trips while we're there. I'll have cash separate and so won't be using it whatsoever to withdraw dough.

The fact it's 0% on purchases for 12 months means I'll only be paying the exchange rate fee on top of what i spend, and have 12 months to pay it back.

I hope that's right, anyway!
:beer:

kaspar

i don't really understand credit cards too much as the one i use at the moment is simply paid off each month in full by direct debit.

so with this 0% purchases on 12 months does that mean that in theory if i used the card to pay for everything i buy then i wouldn't need to spend a penny of my own money for a year?

mab2000

kaspar wrote: »

i don't really understand credit cards too much as the one i use at the moment is simply paid off each month in full by direct debit.

so with this 0% purchases on 12 months does that mean that in theory if i used the card to pay for everything i buy then i wouldn't need to spend a penny of my own money for a year?

You need to make at least the minimum payment (3% of the total balance) as shown on the statement every month, 0% on purchases just means that you wont get charged any interest in the first 12 months. To aviod paying interest, you should clear the balance of the card before the 12 months interest free period is up.

Roger1

robertoefc wrote: »

... if the card was used for a £200 transaction, they would charge £2.75 just the once, regardless of how many months it took to repay the £200?

Yes, in principle, except it's £2.75 per £100 so your £200 example would have £5.50 added to show a total of £205.50.

I need my money more than the banks, so I don't use this kind of card abroad, just my Nationwide Visa avoiding surcharges in Europe and paying just 1% outside Europe.

I was thinking of going for the Santander (ex-Abbey) Zero card, but if Santander customer service is anything like as poor as Abbey was, I'll give it a miss.

zagubov

Be careful if you're applying for this and you already hold a Natwest or RBS card with a high limit - they may give you a low limit on the Tesco one.
CannyJock- how did you go about your appeal?