Buying foreign currency on my Credit Card

sandybrag

I have a holiday coming up and I was wondering instead of buying euros by cash like i normally do if I could just pay using my Halifax Credit Card?.

Is this possible as I have never done this before?. Would I be paying the usual interest rate if I did use my CC for the purchase?

chattychappy

It's an expensive way of doing it. They will treat it as a cash advance - so fee for the advance plus interest (at the cash rate) from the day of transaction.


Then you have the usual fees for buying forex, whatever they are. (Typically commission + loaded tourist exchange rate.)

Dave_the_Ginger_Cat

I think the only lender that does not treat it as a cash advance is M&S money if you buy at their Bureau de Change using their card

dazza.mk

Dave_the_Ginger_Cat wrote: »

I think the only lender that does not treat it as a cash advance is M&S money if you buy at their Bureau de Change using their card

And the Post Office on the PO Card

http://www2.postoffice.co.uk/finance/credit-cards-loans/credit-card/travel-features

stilltheone

sandybrag wrote: »

I have a holiday coming up and I was wondering instead of buying euros by cash like i normally do if I could just pay using my Halifax Credit Card?.

Is this possible as I have never done this before?. Would I be paying the usual interest rate if I did use my CC for the purchase?

Travelex Cash Passport Globe

The card is denominated in Pounds, so you are not buying foreign currency.
The issue remains as to whether Halifax classifies the item as a purchase or cash withdrawal.

If a purchase, it's your best option other than opening another bank account.

Venusflytrap

chattychappy wrote: »

It's an expensive way of doing it. They will treat it as a cash advance - so fee for the advance plus interest (at the cash rate) from the day of transaction.

If by 'they' you mean Halifax, then no, only interest will be payable from day one of cash withdrawal. There is no cash advance fee when using Clarity.

Then you have the usual fees for buying forex, whatever they are. (Typically commission + loaded tourist exchange rate.)

To avoid this, I would advise the OP to withdraw cash using the Clarity direct when on holiday. Even at the highest interest rate of 21.9%, daily interest on a cash withdrawal of say £500 at .0006% per day is a mere 30p.

stilltheone

Venusflytrap wrote: »

If by 'they' you mean Halifax, then no, only interest will be payable from day one of cash withdrawal. There is no cash advance fee when using Clarity.



To avoid this, I would advise the OP to withdraw cash using the Clarity direct when on holiday. Even at the highest interest rate of 21.9%, daily interest on a cash withdrawal of say £500 at .0006% per day is a mere 30p.

You are assuming that they refer to the Halifax Clarity and I'm assuming that they aren't.

johnboy51

I recently wanted some Euros and surfed the comparison sites for the best deal and Thomas Cook came out best combined with convenience. However this was compromised by paying with my M&S card which duly charged me interest for 2 months on this transaction. I pay my bill off every month btw.
I don't understand why M&S should rob me for a transaction I made with Thomas Cook. If I bought a holiday they wouldn't surcharge me.
Am I being thick niaive or both.

Irate of Rugby!

chattychappy

stilltheone wrote: »

You are assuming that they refer to the Halifax Clarity and I'm assuming that they aren't.

Yep, I assumed that too. I had a "normal" Halifax card for a while - and there was a certainly fee on that. No fee on Clarity though.

Perhaps the OP can ... er.... clarify?

chattychappy

johnboy51 wrote: »

However this was compromised by paying with my M&S card which duly charged me interest for 2 months on this transaction. I pay my bill off every month btw.
I don't understand why M&S should rob me for a transaction I made with Thomas Cook. If I bought a holiday they wouldn't surcharge me.
Am I being thick niaive or both.

A bit careless perhaps. The T+Cs will say that cash transactions are charged differently. The point is, that if you buy a holiday (or make another normal purchase) the merchant will pay a commission. Sometimes this will be passed on to you as an extra fee. (A number of flight booking sites charge extra for CC.)

In the case of cash, the merchant pays much less (if anything). So you have to pay more for the privilege. If doing it in person, usually the voucher you sign will make it clear.

andyo

Dave_the_Ginger_Cat wrote: »

I think the only lender that does not treat it as a cash advance is M&S money if you buy at their Bureau de Change using their card

Same with the Tesco Clubcard Credit Card if you buy from their instore or online exchange outlets.