MSE News: Banks to scrap some currency charges

This is the discussion thread for the following MSE News Story:

"A number of banks will stop charging debit card customers to take foreign currency in the UK ..."
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Comments

  • richardw
    richardw Posts: 19,458 Forumite
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    The difference in the buying and selling rates will just get bigger so they can recoup the lost revenue.
    It'll be clearer, but the banks will try to maintain the revenues from travel money transactions.
    That old mantra 'shop around' will still apply.
    Posts are not advice and must not be relied upon.
  • Anyone know if we can reclaim the charges from the banks on this?
  • harz99
    harz99 Posts: 3,630 Forumite
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    ak2875 wrote: »
    Anyone know if we can reclaim the charges from the banks on this?

    Why would we; it's not misselling as the charges are all somewhere in the T&Cs of the various banks cards and accounts.
  • I'm going on a two week holiday to the states next year - what's the cheapest way to spend while I'm out there? Should I get currency here or there, or avoid cash and stick to plastic as much as possible?
  • NFH
    NFH Posts: 4,373 Forumite
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    richardw wrote: »
    The difference in the buying and selling rates will just get bigger so they can recoup the lost revenue.
    No, I don't understand your logic. The banks charge these fees to their own customers who buy foreign cash from third party providers. The third party providers will not lose revenue from this change, so they won't increase their spreads.
  • dzug1
    dzug1 Posts: 13,535 Forumite
    First Post Combo Breaker
    Radionotme wrote: »
    I'm going on a two week holiday to the states next year - what's the cheapest way to spend while I'm out there? Should I get currency here or there, or avoid cash and stick to plastic as much as possible?

    Just browse through these forums. This question or one virtually identical gets asked every couple of days with mindnumbingly monotonous regularity._pale_
  • Dave_C_2
    Dave_C_2 Posts: 1,827 Forumite
    For a lot of years now I have simply avoided this charge by getting cash in Pounds Sterling from an ATM (at no charge) then using the cash to buy my foreign currency in the UK.

    Or am I missing something? Dave
  • Remember they only scrap the charges from 1 January 2012.

    Barclays, the Co-operative Bank, Lloyds TSB, RBS/Natwest and Santander will scrap the fees next year that can add up to 2% to the cost of currency, making £100 worth of euros actually cost £102.

    I bought £4,000 worth of euros in Waterloo Station a couple of days ago, saving me the £80, Barclays would have charged me paying with my debit card. Mind you; it's a pain when the bank only have £20 notes when withdrawing four grand. :(

    Even worse; the bureau de change had run out of hundreds and fifties so they gave most of it to me in 10 euro notes. :eek:
  • zagfles
    zagfles Posts: 20,315 Forumite
    First Anniversary Name Dropper First Post Chutzpah Haggler
    Dave_C wrote: »
    For a lot of years now I have simply avoided this charge by getting cash in Pounds Sterling from an ATM (at no charge) then using the cash to buy my foreign currency in the UK.

    Or am I missing something? Dave

    Yes. You're avoiding one charge but still paying another - the rip-off exchange rate markup for changing cash in the UK. I cut out the middleman and just wait till I'm abroad and withdraw local currency from ATMs once there. Using a card which doesn't charge for foreign ATM withdrawals or mark up the rate of course.
  • Dave_C_2
    Dave_C_2 Posts: 1,827 Forumite
    zagfles wrote: »
    Yes. You're avoiding one charge but still paying another - the rip-off exchange rate markup for changing cash in the UK. I cut out the middleman and just wait till I'm abroad and withdraw local currency from ATMs once there. Using a card which doesn't charge for foreign ATM withdrawals or mark up the rate of course.
    Agreed, but this thread and my question is about changing money in the UK.
    Dave
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