Cheapest credit card abroad

MrFrisk

Greetings to all

I have a credit card that is paid off in full every month, which I also tend to use when abroad on business. Trouble is, the issuer (MBNA) charges a fee of 2.75 per cent on every transaction abroad, which seems like a hell of a lot, since if I pay a E500 hotel bill, my office is only going to refund me at the going rate according to the bill itself, and not the extra E13.75 besides.

Is this standard practice for all credit card companies, or is there a better way?

Many thanks in anticipation


Mr Frisk

MickKnipfler

Nationwide....no charges. Their Current account debit card is the same.

sdj25

It is standard practice, as it is Visa / MasterCard that charge the fee - which the issuer then passes on to it's customers.

The post office have also just come out with a CC that doesn't charge this fee.

grumbler

About Nationwide see the Overseas Spend link in the blue box above. The article was recently updated and now includes information about new Post Office card.

kennethmac2000

Surely there is no such thing as a free lunch though. Presuambly all issuers take some sort of cut in the exchange rate. No?

grumbler

kennethmac2000 wrote:

Surely there is no such thing as a free lunch though. Presuambly all issuers take some sort of cut in the exchange rate. No?

No. Read Martin's article instead of presuming ...

simongregson

The card companies will make money from merchant fees etc, otherwise they wouldn't make money in the UK.

I believe visa don't charge a loading between EU countries, so in Europe the entire loading thing is just another cash cow for the credit card companies.

I think that outside the EU visa/MC do charge the card company a loading fee, but I guess Nationwide and PO feel it is worth absorbing it as it gains a lot of publicity for their cards at very little cost

Everyone's a winner!

MrFrisk

Thank you very much, I will investigate both of those options.

Yankie

You could also check out the audi credit card - there are no fx fees on it (and if you happen to own an audi you get discount on your services/accessories!)

pin

Hi, Here is my list of top places on how to get money to spend abroad:
[FONT=arial,helvetica,sans-serif] [FONT=times new roman,new york,times,serif] [FONT=arial,helvetica,sans-serif] [FONT=arial,helvetica,sans-serif] [FONT=times new roman,new york,times,serif] [FONT=arial,helvetica,sans-serif] [FONT=arial,helvetica,sans-serif] [FONT=times new roman,new york,times,serif] [FONT=arial,helvetica,sans-serif] 1. Nationwide Debit Card for ATM withdrawals from destination country (no foreign loading) / the Audi credit card or the Post Office credit card for purchases in destination country (but watch out for Dynamic Currency Conversion) (no foreign loading for purchases, BUT watch charges for cash withdrawals).

2. Nationwide Credit Card (please note Nationwide's policy re chip and pin in foreign countries: see this thread from FlyerTalk) (no foreign loading for purchases, BUT watch charges for cash withdrawals).
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3. SAGA credit card (if you are over 50) for purchases in destination country (no foreign loading for European purchases, 1% for rest of the world, no cash withdrawal interest if balance repaid in full BUT 1.5%/£1.50 cash withdrawal fee).

4. 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).

5. Thomas Exchange Global ("TEG") in central London - pay and pick up at store.

6. Travelex online (remember Travelex will price match any other exchange service, i.e. the one above) -pay online, pick up at airport.

For price matching: order through Travelex online as you would do normally, then call up TEG (02072401214 or 02078281880) and get a quote re their exchange rate. Email Travelex: [EMAIL="customerservices@travelex.com"]customerservices@travelex.com[/EMAIL] (must be done on the same day) stating the following: your Travelex reference number, your currency quote from TEG (and the fact you got it from TEG) and your address (Travelex will send you a cheque refunding the difference). Also Travelex normally acknowledge receipt of your email. Full terms and conditions of the Travelex Price Promise are on the Travelex website.

7. Marks and Spencer - pay online or pay and pick up instore.

8. Online FX (using this link ensures free deliver) - pay online, delivery to home.

9. Thomson Travel (they seem to use Amex as their travel money provider) - pay online, delivery to home.

10. Co-op Travel (they use Currency Express / Exchange and offer free delivery for orders over £300) - pay online, delivery to home.

11. Post Office (while probably not the best rate, there are many of them around, so may be convenient) - pay online, pick up at PO or pay and pick up at PO.

12. Haggle with High Street travel agent (which may ensure better rates than 5 to 9 above) - pay and pick up instore.

With 4 - 12, if you are paying with debit / credit card check your T&C's as many providers charge for the privilege of using money exchange services.

Here are links to ATM locators: VISA and MasterCard

Here are various information links to VISA: Foreign Exchange Rate FAQ and Visa Exchange Rates

Also please read Martin's article: Spending Overseas and Loading Technicals

Also look at the these forum threads: The Cheapest Way to Spend Overseas Discussion Area and How to buy TCs and foreign currency

Hope this all helps!!
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rosbif

One other card to add is the i24 card from Morgan Stanley. It is a 'concierge' type card so there is a hefty fee (£265 I think) but there are many advantages...

1) There is no foreign currency loading
2) 1% cashback on all purchases
3) Min £20,000 credit limit
4) Concierge service to find those hotels, restaurants, hire cars etc.
5) Most importantly for me - a Priority Pass card to give lounge access at airports. That alone makes the card worthwhile for me and makes the fee a bargain...