Non Sterling Transactions

zagfles

mikeb7499 wrote: »

Hi, I found this forum when searching the subject and am a newbie so please bear with me.

Has anyone discussed what I believe is the real issue here?

It's fine that the credit card companies are forced to show the 'non-sterling transaction fee' separately, but if they don't show you thelocal currency amount or the exchange rate that they have used for each foreign transaction, how can that be called 'transparent'?

They do. If they don't then you're likely to have conned by DCC (dynamic currency conversion). This is where the retailer's POS machine converts the currency at a (usually) awful rate. Retailers must ask your permission before doing this, but there are a lot of dishonest ones who don't - they usually get a cut of the exchange rate markup.

Check your receipts - if you've been conned by DCC it'll show the local currency plus GBP on your recipt. If you didn't agree to it, flag it as an unauthorised transaction with your bank.

I have a strong fear / feeling that this change has become a wonderful opportunity for the companies to make yet more money on foreign transactions.

Can anyone out there convince me otherwise?

Read the thread. Credits cards use the VISA/Mastercard rates which are pretty much interbank. They then mark this up or charge a % which is in the T&Cs. Usually 3% or so. Some don't charge anything.

Far more transparent than doing the luddite thing and changing cash before going on holiday - where you're misled with rubbish like "commission free" currency when there's a massive markup hidden in the rate.

moneymaniac66

I have just received my statement today, and despite having used my card many times over the past few years for transactions in euros particularly, for the first time ever I have been charged a "non-sterling transaction fee" which amounted to just over £15.

Looking at the transactions on my card I guessed it was something to do with the recent hotel reservations in France and called RBS to find out what this "new" charge was about.

They informed me that this charge has been in place for many years although in the past the charge has been accounted for (hidden!) in the exchanged rate for the transaction.

I expressed my dissatisfaction at this answer and the charge has been promptly refunded, although I have been told that in future, as i now know about it, charges will be incurred whenever using my card abroad.

I'm not sure If I am more angry about having been "secretly" charged this fee for many transactions in the past, or the fact that I will now have to find another card for all non-sterling transactions to avoid this overinflated purchase charge!

I guess cash is the way forward.... unless anyone can suggest a good credit card that doesn't charge this fee?

[Deleted User]

Halifax Clarity.

grumbler

moneymaniac66 wrote: »

I'm not sure If I am more angry about having been "secretly" charged this fee for many transactions in the past, or the fact that I will now have to find another card for all non-sterling transactions to avoid this overinflated purchase charge!

It never was a 'secret' as the charge was always in place and in the summary box of your card, not to mention the T&C. It just wasn't shown separately in your statements. This is the case for almost all credit and debit cards with very few exception.
So, essentially, nothing changed and you can keep using the card.

I guess cash is the way forward.... unless anyone can suggest a good credit card that doesn't charge this fee?

• Compare Travel Cash

zagfles

moneymaniac66 wrote: »

I'm not sure If I am more angry about having been "secretly" charged this fee for many transactions in the past, or the fact that I will now have to find another card for all non-sterling transactions to avoid this overinflated purchase charge!

I guess cash is the way forward.... unless anyone can suggest a good credit card that doesn't charge this fee?

:rotfl:Changing cash usually has a much bigger charge, and it's still "secret". You don't really believe "commission free" do you?

grumbler

zagfles wrote: »

Changing cash usually has a much bigger charge,

In fact you can order online for just 0.6% more (plus £3.90) than if you use Clarity. This is cheaper than using most other cards.

zerog

moneymaniac66 wrote: »

I'm not sure If I am more angry about having been "secretly" charged this fee for many transactions in the past, or the fact that I will now have to find another card for all non-sterling transactions to avoid this overinflated purchase charge!

It was only a secret if you didn't pay attention to the actual exchange rates.

opinions4u

moneymaniac66 wrote: »

I have just received my statement today, and despite having used my card many times over the past few years for transactions in euros particularly, for the first time ever I have been charged a "non-sterling transaction fee" which amounted to just over £15.

Looking at the transactions on my card I guessed it was something to do with the recent hotel reservations in France and called RBS to find out what this "new" charge was about.

They informed me that this charge has been in place for many years although in the past the charge has been accounted for (hidden!) in the exchanged rate for the transaction.

I expressed my dissatisfaction at this answer

I've had several credit cards since 1986. They have all been totally open and explicit about the foreign transaction fee. This includes Nat West, RBS and Ulster Bank.

I'm not sure If I am more angry about having been "secretly" charged this fee for many transactions in the past, or the fact that I will now have to find another card for all non-sterling transactions to avoid this overinflated purchase charge!

Check every bank out. Then take a look at Halifax Clarity. You'll realise not many choices exist. I think Lloyds have something with a £24 annual fee as well.

I guess cash is the way forward.... unless anyone can suggest a good credit card that doesn't charge this fee?

You will probably find that cash is, in most cases, far more expensive.

These dastardly banks tend to offer a sneaky, underhand, secret favourable exchange rate on card transactions. That benefits you.

zagfles

grumbler wrote: »

In fact you can order online for just 0.6% more (plus £3.90) than if you use Clarity. This is cheaper than using most other cards.

That's why I said "usually". The best cards are cheaper than the best ways of changing cash, the average card is cheaper than the average way of changing cash. I've got some leftover currency from a recent trip, I was in the post office for something else so went up to the forex counter and asked their rate, it was about 15% off the interbank!

Besides do you really want to trust all your holiday money to a company that doesn't even accept debit/credit cards, expects to be paid by bank transfer or the like, and hope they don't go bust like Crown, that it'll be delivered safely and on time, and even if all goes well you'll end up having to carry a large amount of cash around with you.

dzug1

Chordeiles wrote: »

, I always take a wad of £20 notes to Asia and get them changed into local currency at a bank (Thailand) or a money-changer (Malaysia), in each case the spread I suffer is tiny, certainly less than 0.5%, so if these guys can do it for that then so could our banks.

Wages are far lower in SE Asia than here - particularly the money changer where it's probably a family member working for nothing much more than board and lodging.