using a pre-paid Mastercard to buy currency

chicarg

I was wondering whether anyone would know the answer to this...

I need to buy a considerable amout of USD, so I would prefer to use a card as I dont have to bring the wade of cash to the exchange bureau (collection seems to offer the best rates). However, most debit cards would charge a fee to use them to buy currency (I dont have any of the small number of cards that dont charge a fee).

So, it occured to me that I could load my prepaid mastercard with the amount needed and then use this card to buy the currency. The prepaid mastercard is a Neteller, in case it matters. Would this work? As this is pre-paid, and not regulated by a bank, I would assume no fee is chargeable but I am not sure and wanted to know if anyone would know the answer. Loading the card is free.

I am hoping someone can share some advice!

thank you!

Baldur

See https://help.neteller.com/cgi-bin/neteller.cfg/php/enduser/std_adp.php?p_faqid=1306

Foreign Exchange (at ATM or POS) 2.95%

benjus

Surely the 2.95% is referring to use of the card in a foreign currency. The OP appears to be asking about using the card in GBP to pay for foreign currency at a Bureau de Change.

The charge that the OP is trying to avoid is normally associated with Visa debit cards; Neteller cards are on the Mastercard network, so I suspect that this would not apply. However, it is possible that this type of transaction might be treated as a cash withdrawal and given the same fees as an ATM withdrawal, and perhaps even the same withdrawal limits. I'm really just speculating here as I can't see any reference to this on the Neteller website.

Maybe the OP could call Neteller and ask them, and post the outcome here. Alternatively, try using the card for a small amount of foreign currency and see what happens.

An alternative to using the Neteller card might be to find a BdC that will accept a Faster Payments bank transfer as payment.

Baldur

benjus wrote: »

The charge that the OP is trying to avoid is normally associated with Visa debit cards; Neteller cards are on the Mastercard network, so I suspect that this would not apply.

I would not assume that to be the case. The limited number of Mastercard Debit Cards issued, in comparison with VISA Debit Cards does not necessarily imply that FX charges would not be applied - that is down to the card issuer, rather than the network.

As you suggest, only Neteller can supply a definitive answer.

ferf1223

benjus wrote: »

Surely the 2.95% is referring to use of the card in a foreign currency. The OP appears to be asking about using the card in GBP to pay for foreign currency at a Bureau de Change.

But many debit cards do apply the same % to purchases of foreign currency that they do when making a purchase in a foreign currency.

I agree that contacting Neteller would make sense - but I think it would be better to assume for now that the 2.95% would apply unless specifically told otherwise.

chicarg

thanks all- will call Neteller and see what can they clarify - will post outcome for future ref-

cheers