Pay With Credit Card or Withdraw Cash

fcmisc

Hello,

I am off to Morocco next week.

If I pay for something with my Amex, they will charge 2.99%.

If I withdraw from and ATM with my HSBC debit card, it should be free.

However, I don't know how these truly compare, as the rate from an ATM might be different from the rate charged on my Amex.

Does anyone know if I'll be better off withdrawing cash and using that, or using my Amex?

Thanks,

Jon.

guesswho2000

Unless you select to withdraw the cash and have the ATM convert to GBP (dynamic currency conversion), then it'll be converted at the rate applied by your card issuer, probably the visa or mastercard rate.

Using the Visa/MC rate applied by the issuer will almost always be better than paying a forex fee (2.99% in your case with Amex), but if you withdraw the cash letting the ATM do dynamic cc, then you'll almost certainly be worse off than using the Amex.

reclusive46

The Visa rate is normally better (Apart from in the US and Canada and it can sometimes be better), although HSBC charge 2.99% forex fee as well. Amex would effectively charge 5% on an atm as they charge 3 for withdrawal and 3 for foreign transaction fee.

American Express is a bit naff acceptance wise (Although MasterCard can be as well) in Morocco. Almost everywhere can take it but most won't want to because of the fees. The usual trick of saying its the only way you have to pay normally works with Amex.

fcmisc

Thanks for the advice guys. I paid using card and used ATMs. i got a rate of about 12.5. The best rate for buying currency in the uk was 12.0. So I got just under 5% better value for money!

Markbridges12

I have not been to Morocco, but have travelled to some touristy places in Asia like Thailand. If I have time, I generally go to the main market and scout around looking at exchange rates in currency shops and most of the times, I find a shop which exchanges my pounds into the local currency at a better or equal rate than using my debit card directly at a card machine. Using a credit card or withdrawing cash using debit card usually works out a bit more expensive in comparison. Do this only if you have time to scout around.

UsetheFORCE

Whilst not wildly different, on some days the difference between rates can be a few % on differing currencies...


MAD Moroccan dirham 12.913509

MASTERCARD settlement 25/03/13



1 POUND STERLING = 12.883609 MOROCCAN DIRHAM

VISA settlement 25/03/13



Settlement rates (excluding charges levied by your bank) can be found at:

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

http://www.visaeurope.com/en/cardholders/exchange_rates.aspx

UsetheFORCE

When I buy my Tax Paid items at BREMEN Airport when I return home, I ALWAYS pay in STERLING on my credit card at the till at the retailers exchange rate.

I know exactly how much I am going to pay AND the exchange has ALWAYS meant I pay less than if I paid in EUROS with my Credit Card.

chattychappy

UsetheFORCE wrote: »

When I buy my Tax Paid items at BREMEN Airport when I return home, I ALWAYS pay in STERLING on my credit card at the till at the retailers exchange rate.

I know exactly how much I am going to pay AND the exchange has ALWAYS meant I pay less than if I paid in EUROS with my Credit Card.

Sounds like you are using the wrong credit card then.

In my experience, dynamic currency exchange (ie paying in GBP whilst overseas) always loads by 4% or more.

reclusive46

chattychappy wrote: »

Sounds like you are using the wrong credit card then.

In my experience, dynamic currency exchange (ie paying in GBP whilst overseas) always loads by 4% or more.

Indeed, the only DCC might be better is on low value transactions and when the card charges a minimum fee of £1 no matter what (RBS, Santander debit cards etc.)