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buying currency with credit card

i have a lloyds airmiles duo card. how much would i be charged to buy dollars on the card?
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Comments

  • dazza.mk
    dazza.mk Posts: 1,927 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Here's an idea, you could check their website?

    http://www.lloydstsb.com/credit_cards/airmiles_duo_summary_box.asp
  • costaerer
    costaerer Posts: 648 Forumite
    yes i can get that.

    im just wondering really , if you buy foreign currency with this card do you get charged a cash withdrawl fee?
  • Yes you do and a high rate of interest on the cash part of the balance until you pay off the whole card balance.
    A no no IMO.
  • gunny6k
    gunny6k Posts: 2 Newbie
    edited 2 September 2010 am30 10:38AM
    I have found that using an ATM when abroad is the cheapest way to convert currency. You will obviously need to check with your bank ( I am with Natwest)

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  • costaerer
    costaerer Posts: 648 Forumite
    surely its just the same as withdrawing cash out here. ie the same as buying currency here?
  • Bob_the_Saver
    Bob_the_Saver Posts: 5,610 Forumite
    gunny6k wrote: »
    I have found that using an ATM when abroad is the cheapest way to convert currency. You will obviously need to check with your bank ( I am with Natwest)

    I think you need to do some research my friend. :money:
  • costaerer
    costaerer Posts: 648 Forumite
    I think you need to do some research my friend. :money:

    lol!!!!!!!!!!!
  • costaerer
    costaerer Posts: 648 Forumite
    i dont really get it. because how do the credit card company know that you have bought currency with your card??
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    costaerer wrote: »
    i dont really get it. because how do the credit card company know that you have bought currency with your card??

    It's in the merchant agreement. Most only sell goods for which they must pay a commission. Ie you spend £100, shop pays £2 in commission so only receives £98 from the CC company.

    Some merchants are authorised to do cash disbursement. Ie they can sell you cash (or TCs etc). Different commission rates apply.

    So it comes down to how the transaction is processed.

    I once knew a "dodgy" bureau de change "in Asia". You could draw cash from them. They would either process it normally (ie go through as a cash transaction) or for 2% extra they would process as a purchase (via the attached gift shop).
  • costaerer
    costaerer Posts: 648 Forumite
    so sorry im still slightly confused as to what im going to be charge. 2% from the bureau, plus 2.5%-3.00% cash withdrawl fee from the credit card company plus 2.075% interest per month for the cash withdrawl.

    so its about 5% ontop of what you are getting plus about 75% more interest per month?

    as well as the cash withdrawl fee of 3%, would you also have to pay Foreign currency transactions - 2.95% of the amount of the sterling transaction value if bought abroad?

    ahhhhhh because then you are talking about 8% charges of everything you withdraw abroad!
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