Foreign Currency: To buy or not to buy?

pelirocco

Kimber1 wrote: »

I have to say I ordered foreign exchange on my mastercard (LloydsTSB) and was aware that I would get a cash advance fee charged but in addition I got two months worth of interest charged even though I paid the statement in full for both months. I phoned but the contact centre person replied that I should know that "every bank" charges interest and when I asked if I could have an email address for their customer relations team apparently they do not have email - amazing response. Does anyone know of another bank who do not charge you interest - I always pay my statements on time (actually within a day of the statement being issued) and although I do this and pay in full I still get charged interest for two months. Very unfair and I suppose I will get charged interest next month as well - a never ending amount being paid. A warning do not get cash travel exchange out from your bank without checking all the small print and how long they will charge you interest for.

The OP was referring to spending on your cc while abroad , not buying currency with it

Road_Hog

callum9999 wrote: »

Though of course the logical option is to just get a card that charges the forex rate minus 0% - which are pretty easy to get hold of now. (Most of the credit cards require a decent-ish credit history - but not so much for the debit cards).

And which cards don't weight the exchange rate? They all have to, to allow for changes in the exchange rate, otherwise they could be out of pocket, because of currency fluctuations.

YorkshireBoy

Road_Hog wrote: »

And which cards don't weight the exchange rate?

Santander Zero (amongst several others). I've recently been in the Euro zone and got 1.175 on my currency before I left. My card transactions have all been posted at over 1.20 just a few days later.

They all have to, to allow for changes in the exchange rate, otherwise they could be out of pocket, because of currency fluctuations.

Not really. They use the relevant rate at settlement date, which is 2-3 days after the statement date. In other words, they can't lose!

And of course they'll pick up their share of the merchant fees also.

Jennifer_Jane

The Post Office credit card don't charge a fee for buying currency (I realise that this is NOT what the OP was suggesting - but just saying). There was - nb was - £50 Quidco for taking out the card (I think it's now £30).

Whilst the OP makes a good point about it's being better value to pay for everything by card, this would worry me, and I prefer to take cash for the everyday things.

callum9999

Jennifer_Jane wrote: »

The Post Office credit card don't charge a fee for buying currency (I realise that this is NOT what the OP was suggesting - but just saying). There was - nb was - £50 Quidco for taking out the card (I think it's now £30).

Whilst the OP makes a good point about it's being better value to pay for everything by card, this would worry me, and I prefer to take cash for the everyday things.

The OP's point was that while your Post Office Mastercard won't charge a fee - the Post Office will, but hides it in the exchange rate.

Places advertising 0% commission are blatantly lying, and in my opinion should be forced to stop. I assume they only get away with it by using some sort of loophole. I personally think all currency exchange places should be forced to sell you currency at the current exchange rate and put their fees/a % on top as an itemised charge.

OllyM

Road_Hog wrote: »

And which cards don't weight the exchange rate? They all have to, to allow for changes in the exchange rate, otherwise they could be out of pocket, because of currency fluctuations.

Halifax Clarity, Nationwide Select, Post Office Mastercard and Santander Zero (although I don't think this is available for new customers any more) all use the Visa/Mastercard wholesale rate and will be the cheapest possible way to spend abroad.

dzug1

Kingsgraphic wrote: »

most foreign exchange outlets, for example M&S money and The Post Office, are selling at around 10% down on the current forex rate (while boasting that they don't charge commission!).

I've never seen rates as bad as 10% off from the PO/M&S - certainly not if you preorder. Between 3 and 5%??

Buying back is always worse - maybe that's where the 10% comes from