MSE News: Banks to scrap some currency charges

callum9999

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.

Yes but both charges are from completely separate entities. You said they need to "recoup lost revenue" but the company that loses the revenue is the bank - and they have no say in Thomas Cooks etc. chosen exchange rate.

Yes you are still paying a currency conversion fee but you are paying for a service, so is arguably fair (when they are transparent of course - the "0% commission" is a load of rubbish). From the banks perspective, buying foreign currency is hardly much different from spending in any other shop - and no different from using an ATM - which are both free. Hence why they were so annoying.

zagfles

callum9999 wrote: »

Yes but both charges are from completely separate entities. You said they need to "recoup lost revenue" but the company that loses the revenue is the bank - and they have no say in Thomas Cooks etc. chosen exchange rate.

Yes you are still paying a currency conversion fee but you are paying for a service, so is arguably fair (when they are transparent of course - the "0% commission" is a load of rubbish). From the banks perspective, buying foreign currency is hardly much different from spending in any other shop - and no different from using an ATM - which are both free. Hence why they were so annoying.

Agreed - but is wasn't me that said the highlighted bit above.

callum9999

zagfles wrote: »

Agreed - but is wasn't me that said the highlighted bit above.

Ah sorry - quoted wrong post!

dzug1

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

Not really.

Except that the pay in advance pick up at airport route was denied to you. And you can get reasonable rates (if not the absolute best) that way. Nor could you buy for home delivery - from the right place definitely the best rates short of a non-charging debit card in an ATM abroad..

Dave_C_2

dzug1 wrote: »

Not really.

Except that the pay in advance pick up at airport route was denied to you. And you can get reasonable rates (if not the absolute best) that way. Nor could you buy for home delivery - from the right place definitely the best rates short of a non-charging debit card in an ATM abroad..

Not quite, as there is a delivery charge, which soon eats into the savings with better rates. Those places on this MSE web site not changing delivery charge want cash or cheque. For example in round numbers the best rate for £100 delivered is 113€ compared with 117€ paying cash in Sainsburys.

Bear in mind that there is a maximum amount for cash on holiday insurance, normally about £250. So if you get fee free Cash by spending over £300 it may not be insured on your policy.

Dave

2sides2everystory

The response to this News item in this thread is an indication of how confused we all are and how MSE is just contributing to rather than debunking bankster spin.

brewerdave

Sorry to bump an old thread but I'm about to order Bulgarian Lev from Tesco or Travelex for a skiing trip - have NatWest actually stopped the charges for using a debit card for foreign currency purchases from a third party ??? Think I got stung 1.5% when I bought currency this way back in October.

TakeThis

brewerdave wrote: »

Sorry to bump an old thread but I'm about to order Bulgarian Lev from Tesco or Travelex for a skiing trip - have NatWest actually stopped the charges for using a debit card for foreign currency purchases from a third party ??? Think I got stung 1.5% when I bought currency this way back in October.

No cashpoints in Bulgaria? You can also take £s with you. When you change, always ask "How much money will I get for £100?" rather than relying on what you see on the boards.
Also, make sure that you get a receipt and check the amount on the receipt before signing it. The deal is not valid until you have signed the receipt.

As to the NatWest question, you should ask them and report back here with the info.

brewerdave

TakeThis wrote: »

No cashpoints in Bulgaria? You can also take £s with you. When you change, always ask "How much money will I get for £100?" rather than relying on what you see on the boards.
Also, make sure that you get a receipt and check the amount on the receipt before signing it. The deal is not valid until you have signed the receipt.

As to the NatWest question, you should ask them and report back here with the info.

Cash is not for me - but for my other half - a)wouldn't like her taking debit card with her - she'll probably lose it or leave it in an ATM:rotfl:
Also she will get in a horrible mess if she has to change her own money.
b) asked @ NatWest branch earlier and they went into a blue funk - knew what the charges were/had been ,but hadn't heard about them being abolished,let alone an effective date!! Just thought someone might have recent experience.
EDIT-I've just managed to get thru to NatWest on the phone - they are now claiming that it WON'T be abolished as it isn't their charge but Visa's debit charge!!!!:(

TakeThis

brewerdave wrote: »

Cash is not for me - but for my other half - a)wouldn't like her taking debit card with her - she'll probably lose it or leave it in an ATM:rotfl:
Also she will get in a horrible mess if she has to change her own money.
b) asked @ NatWest branch earlier and they went into a blue funk - knew what the charges were/had been ,but hadn't heard about them being abolished,let alone an effective date!! Just thought someone might have recent experience.
EDIT-I've just managed to get thru to NatWest on the phone - they are now claiming that it WON'T be abolished as it isn't their charge but Visa's debit charge!!!!:(

This from the Travelex website:

Credit/Debit cards may be subject to a card handling fee or cash advance fee set by the card issuer. You will not be charged a card handling or cash advance fee if you choose to pay by Maestro, or MasterCard® Debit Cards. If you wish to pay by MasterCard® Credit Card, a handling fee of 1.5% of the order value may be applied (min £4.00 - max £15.00). This will be shown within your order summary as a "credit card fee". If you choose to pay by Visa Credit or Debit card, your card issuer may apply a cash advance fee which will be shown separately on your Credit or Debit Card/Bank statement.