Buying foreign currency with a credit card

antispam246

I want to purchase US Dollars online using a credit card, now it seems the majority of places charge a free (handling) for this which really does add up from what I've seen.

I want to pay by credit card so I've been researching, it would appear that if you buy through Tesco using a Tesco Credit Card they will not charge you any handling fees, no fees at all. The rate at Tesco last I checked was 1.56, which isn't too bad. I have a Tesco credit card also.

My query is, is there any other online bureaus that won't charge me any extra fees for buying US Dollars with a credit card? Just want to make sure I'm considering all my options for buying with a credit card.

benjus

I think you're looking at this from the wrong side - you should be looking at which credit cards don't impose a charge when you buy foreign currency or otherwise obtain a cash advance. Since Tesco issue the credit card, they can waive the fee - as long as you use their money changing service.

Credit cards that don't charge at all for cash advances include Halifax Clarity and Santander Zero - however, I believe some bureaux de change won't accept credit cards at all.

antispam246

benjus wrote: »

I think you're looking at this from the wrong side - you should be looking at which credit cards don't impose a charge when you buy foreign currency or otherwise obtain a cash advance. Since Tesco issue the credit card, they can waive the fee - as long as you use their money changing service.

Credit cards that don't charge at all for cash advances include Halifax Clarity and Santander Zero - however, I believe some bureaux de change won't accept credit cards at all.

I'm sure that's what I was asking. Don't impose a charge = "won't charge me any extra fee". Anyway, to clarify.
I want to purchase US Dollars online using a credit card paying with Sterling £'s. But I'm looking for exchanges, if any, other than Tesco that will not charge me any extra fees (or impose other charges) ontop of the exchange for paying with a credit card.

It may be that there are none, other than Tesco that allow this using there credit card. Obviously I'm still looking for a good rate.

Just to void any side-tracking. I want to pay on credit card because it allows me to manage my funds alot easier when I'm paid next month, this way I can make my exchange now for when I go away in 1 week, then not have to worry about paying it off till next month, after I've been paid.

benjus

antispam246 wrote: »

I'm sure that's what I was asking. Don't impose a charge = "won't charge me any extra fee". Anyway, to clarify.
I want to purchase US Dollars online using a credit card paying with Sterling £'s. But I'm looking for exchanges, if any, other than Tesco that will not charge me any extra fees (or impose other charges) ontop of the exchange for paying with a credit card.

It may be that there are none, other than Tesco that allow this using there credit card. Obviously I'm still looking for a good rate.

Just to void any side-tracking. I want to pay on credit card because it allows me to manage my funds alot easier when I'm paid next month, this way I can make my exchange now for when I go away in 1 week, then not have to worry about paying it off till next month, after I've been paid.

What I meant was: whether or not you get charged for obtaining cash from a credit card depends primarily on which credit card you have, not on where you use it.

You have a card which does charge for cash advances, with the exception of foreign currency purchased from Tesco. So unless the Terms and Conditions of your card lists anywhere else you can buy foreign currency with no fees, you're not going to find anywhere.

antispam246

Got it thanks. Any other credit cards that are exempt for extra fees? I have a Halifax Clarity card but as far as I'm aware this doesn't make it exempt from the online fees that many online exchanges charge.

zagfles

antispam246 wrote: »

Got it thanks. Any other credit cards that are exempt for extra fees? I have a Halifax Clarity card but as far as I'm aware this doesn't make it exempt from the online fees that many online exchanges charge.

I might be missing something, but as you have a Clarity card why don't you just wait till you get there and use a cashpoint? You'd get the MasterCard rate which is currently 1.616, a lot better than 1.56 Tesco rate.

https://www.mastercard.com/global/currencyconversion/index.html

antispam246

zagfles wrote: »

I might be missing something, but as you have a Clarity card why don't you just wait till you get there and use a cashpoint? You'd get the MasterCard rate which is currently 1.616, a lot better than 1.56 Tesco rate.

https://www.mastercard.com/global/currencyconversion/index.html

I thought there was a charge for using it to withdraw?

Edit: There's no withdrawal fee but

Will I get charged interest if I withdraw cash from a cash machine? You pay interest from the day you withdraw cash, but unlike many other cards, there's no withdrawal fee. Whilst we won't charge you a cash advance fee, some independent cash machine providers may charge a fee for their service.


So does that mean that if I withdrew £500 on day 1 I'd be paying the card apr% interest on it each day? So it doesn't work as normal where I'd simply pay off in full when it's due and not pay any interest.

loobs40

Just log onto your Internet banking and credit the card account with the same amount of money that you drew out the ATM thus minimising interest

zagfles

antispam246 wrote: »

I thought there was a charge for using it to withdraw?

Edit: There's no withdrawal fee but

Will I get charged interest if I withdraw cash from a cash machine? You pay interest from the day you withdraw cash, but unlike many other cards, there's no withdrawal fee. Whilst we won't charge you a cash advance fee, some independent cash machine providers may charge a fee for their service.


So does that mean that if I withdrew £500 on day 1 I'd be paying the card apr% interest on it each day? So it doesn't work as normal where I'd simply pay off in full when it's due and not pay any interest.

Yes, you pay interest, but if you're only going for a couple of weeks or so it won't be much - pay it off as soon as you get back. If say you've got the 12.9% APR, the interest over 2 weeks will be about 0.5%. You're saving about 3.5% over the Tesco rate so you're up overall.

It's possible the US cash machine will charge, but it's unlikely to be anywhere near 3% unless it's in a Las Vagas casino!

antispam246

I wanted some cash in hand before reaching destination. Thanks for all the tips, you've given me alot more options to look into now, especially for when I get there.
I noticed ICICI were doing a 24 hour sale, and they rank high up on the comparison sites with todays sale rate 1.586. Furthermore they don't charge a handling fee for the amount I want, they noted that my CC provider may charge a fee, which would be a cash advance fee, fortunately the Halifax Clarity does not charge for this, so bingo, decent rate and no fees.