Card conversion fee added to banks currency rate

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cepheus
cepheus Posts: 20,053 Forumite
I didn't realise ALL cards had this loading, thought a few such as Nationwide and Santander Zero didn't?

The problems
Currency conversion fees – debit and credit cards All debit and credit cards carry a built-in conversion fee of 2.75-2.99% that is added to the bank's currency rate. This is called a 'load' or 'currency conversion fee'. Basically, Visa and Mastercard, which operate all debit and credit cards, have a flat wholesale rate for all exchange rates which is about as good a deal as you can get. The problem is card providers add on an extra conversation fee, which does not appear on your statements and adversely affects the exchange rate. Both credit and debit cards are guilty of this.

Comments

  • Toe-Jam
    Toe-Jam Posts: 1,554 Forumite
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    What is your point ?...
  • exel1966
    exel1966 Posts: 4,978 Forumite
    First Post First Anniversary Combo Breaker
    edited 5 June 2010 at 9:43AM
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    cepheus wrote: »
    I didn't realise ALL cards had this loading, thought a few such as Nationwide and Santander Zero didn't?

    Not ALL cards do. Zero, PO, SAGA and european Nationwide transactions don't.

    This Is Money is INCORRECT in stating 'All' !!
  • Fruit_and_Nut_Case
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    exel1966 wrote: »
    Not ALL cards do. Zero, PO, SAGA and european Nationwide transactions don't.
    In other words, the THISISMONEY website is wrong?
    Are you for real? - Glass Half Empty??
    :coffee:
  • Toe-Jam
    Toe-Jam Posts: 1,554 Forumite
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    exel1966 wrote: »
    Not ALL cards do. Zero, PO, SAGA and european Nationwide transactions don't.


    Correct, and there is a list of the charges here http://www.moneysavingexpert.com/travel/overseas-card-charges,

    Reading the site properly and the terms and conditions of their account, It might not have come as such a revelation. There are also prepaid cards Fairfx CaxtonFx etc which largely reduce the charges.
  • hippey
    hippey Posts: 849 Forumite
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    Not strictly true, Barclaycard & Amex (UK) show the charge as a seperate line, in will say something like 'including £2.54 commission'

    Some other providers do this to, either way even with a 3% commission it is likely to be below what you could get in the same currency from a high street bank / travel agent who advertise 'free commission' just check the rates!
    These are my thoughts and no one else's, so like any public forum advice - check it out before entering into contracts or spending your hard earned cash!

    I don't know everything, however I do try to point people in the right direction but at the end of the day you can only ever help yourself!
  • cepheus
    cepheus Posts: 20,053 Forumite
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    exel1966 wrote: »
    Not ALL cards do. Zero, PO, SAGA and european Nationwide transactions don't.

    This Is Money is INCORRECT in stating 'All' !!

    This was my point, just wanted it confirmed!
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