Obtaining Cash Abroad with a Credit Card

funkey_monkey

Hi,

I'm going to South America soon and will be taking two credit cards with me - a Post Office Mastercard which charges 2.5% on every ATM withdrawal and a Visa card which charges 2.75% on every withdrawal.

My question is - is there any way I can avoid this fee? I was told that if I overpay may card i.e. put it into credit, there will be no charge on my card for the withdrawal - only what the exchange rate they offer is.

Can anyone please confirm this for me?

Also, is the PO Mastercard still the best to use whilst abroad?



Thanks.

sharpy2010

funkey_monkey wrote: »

Can anyone please confirm this for me?

Thanks.

I can confirm that if you overpay your credit card then unfortunately it will probably be blocked, as due to money laundering and the terms and conditions of your card, it will not be allowed.

opinions4u

Halifax Clarity Credit Card has no fee for foreign currency transactions and uses the official Mastercard exchange rates.

http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/


If you don't want another card, use your Post Office card for all purchases. Reduce your reliance on cash for purchases.

Don't put credit cards in to credit balance. Risk of them being stopped. Make sure your issuer knows where you're going. Just in case they block your transactions following an attempt to buy a coke in Bogota.

While I don't think it will save you money, a prepaid card may also be worth having in place as a third back up. Post Office and others do them, but make sure you understand the charges before you buy and use. I've not researched them!

http://www2.postoffice.co.uk/travel/travel-money/travel-money-card

Fingerbobs

Also be aware that even though there may be no fee for the transaction, you may still be charged interest from the date of the transaction on cash withdrawals. There is usually no interest-free period for cash withdrawals.

boomerangguy

I have a Halifax Clarity Card and I am told that this is one of the best cards to use abroad.

I intend to pay for everything on the card which I am told is free if I pay off before interest rates kick in. I am going to Romania should I always choose to pay in the local currency? Is it safe to pay this way and how can you be sure they are charging you correctly?

I am charged 12.9APR for cash withdrawals from an ATM. For stuff that cant be paid by card is this still cheaper than going to a bureau de change?

Also suppose I have debt for both categories. When I pay this off will the dealt with the interest per day be paid off first?

Thanks

Venusflytrap

boomerangguy wrote: »

I have a Halifax Clarity Card and I am told that this is one of the best cards to use abroad.

I have one. It is.

I intend to pay for everything on the card which I am told is free if I pay off before interest rates kick in. I am going to Romania should I always choose to pay in the local currency? Is it safe to pay this way and how can you be sure they are charging you correctly

Always pay in local currency to benefit from whole sale VISA or Mastercard conversion rates, administered by your card issuer.

I am charged 12.9APR for cash withdrawals from an ATM. For stuff that cant be paid by card is this still cheaper than going to a bureau de change?

Unless your bureau de change offers whole sale rates, it'll be cheaper drawing cash with your card. Depending on how long you'll be away for I advise to pay off the cash amount once you're back int he UK. Also gauge when to pay based on whether your statement has been generated or not and if you have a DD set up to take the full amount. If so then even with additional payments the DD will still take the full amount owed resulting in a positive CC balance.

Also suppose I have debt for both categories. When I pay this off will the dealt with the interest per day be paid off first?

Cash advances accrue interest from the date of the transaction. Purchases are interest free (for up to 56 - 59 days) until paid off before the payment due date.

chattychappy

funkey_monkey wrote: »

and a Visa card which charges 2.75% on every withdrawal.

Which one?

You might find it charges this on the currency conversion AND a further cash advance free for ATM withdrawals.

Santander ZERO is a good alternative to Clarity. No cash withdrawal fee, no forex conversion fee. Just interest from the day of withdrawal. However I'm not sure if it's still available - I think it might be for existing customers or through a branch.

funkey_monkey

chattychappy wrote: »

Which one?
QUOTE]

Northen Bank Visa Card.
http://www.northernbank.co.uk/en-gb/Personal/Day-to-day/cards/products/Visa-card/Pages/Visa-card.aspx?tab=2#tabanchor

Drag1

The Halifax card is pretty good but I would check to see whether they will charge you interest even if you don't get charged for taking the money out. I don't think there is any way to get out of it I'm afraid.

Venusflytrap

Yes, the clarity charges interest on cash advances from day one, but no foreign transaction or conversion fees. Still works out a lot cheaper if paid off in full as soon as.