why is fx rate higher when booking flights with credit card?

crusty_toenail

I booked some Ryan air flights with my halifax credit card and checked on google the euro to Sterling exchange rate on Sunday when I booked them. I worked out 1011 euros was 850 pounds, but when I got confirmation email from Ryan air it said f x rate was higher and the price is 900? does anyone know why that would be?

thanks,

crusty x

dalesrider

You would need to check what the Visa/MasterCard rate was.... Not what google said.
As well as do Halifax have a loading.

Since when have Ryan air been taking payments in euro's. They are usually in GBP.

Also remember that the conversion rate is on the day of debit. NOT the day the transaction is made.

geekonthepc

Banks, or any other FX handling company for that matter, will rarely ever follow the actual exchange rate. Most companies will devalue the exchange rate slightly in order to make a profit on what you're exchanging.

I noticed this when I went to pay for something in USD from my PayPal account - at the time GBP/USD was ~1.51 but PayPal were valuing it at ~1.46. Similar thing happened when a USD amount was charged to my debit card - although in fairness HSBC were much fairer with the exchange rate.

Always good to check what the company is quoting their exchange rate as, so you can compare it with the real exchange rate and check you aren't being ripped off.

NiftyDigits

You paid for a flight in Euros with a UK credit card?

Ryanair did the conversion for you, instead of allowing your card to do the conversion.

There probably is a tiny hidden link that you have to click on to avoid this, but you clearly didn't find it.

grumbler

crusty_toenail wrote: »

I booked some Ryan air flights with my halifax credit card and checked on google the euro to Sterling exchange rate on Sunday when I booked them. I worked out 1011 euros was 850 pounds, but when I got confirmation email from Ryan air it said f x rate was higher and the price is 900? does anyone know why that would be?

If the price was in € and Ryanair charged the card in €, they would have known nothing about the actual £ amount. If they know it, this means that, as NiftyDigits says above, at some point you allowed them to make the conversion at their own rate and to charge you £900.

What amount have you actually agreed to pay and authorised them to charge you with?

UsetheFORCE

NiftyDigits wrote: »

You paid for a flight in Euros with a UK credit card?

Ryanair did the conversion for you, instead of allowing your card to do the conversion.

There probably is a tiny hidden link that you have to click on to avoid this, but you clearly didn't find it.

You need to UNTICK the box when confirming your payment method, as stated there is a box.

Ryanair automatically recognise you have a UK payment card and convert it for you, the exchange is 'loaded' so you really do want to take the VISA/Mastercard rate, untick the box...

Regarding booking a return flight on Ryanair, I ALWAYS book TWO singles as it is cheaper, a £12 flight out, a 12 EURO flight back, cheaper than a £24 return...

grumbler

UsetheFORCE wrote: »

.... you really do want to take the VISA/Mastercard rate, untick the box......

This will work only if Halifax card that the OP uses is Clarity. Otherwise Halifax will take their cut instead of Ryanair, although it will be 3.75%, i.e smaller than 5.5% that Ryanair allegedly have taken judging by 850/900 figures.

NiftyDigits

grumbler wrote: »

This will work only if Halifax card that the OP uses is Clarity. Otherwise Halifax will take their cut instead of Ryanair, although it will be 3.75%, i.e smaller than 5.5% that Ryanair allegedly have taken judging by 850/900 figures.

That's not quite right. Normal Halifax CC takes 2.95%. Their debit card, 2.75%.

zerog

NiftyDigits wrote: »

That's not quite right. Normal Halifax CC takes 2.95%. Their debit card, 2.75%.

Well it doesn't really matter, I think the general rule is that even after your card's commission, the exchange rate is always going to be better than a merchant offering you their own rate.

NiftyDigits

zerog wrote: »

Well it doesn't really matter, I think the general rule is that even after your card's commission, the exchange rate is always going to be better than a merchant offering you their own rate.

Of course it matters. Don't be silly. One should be aware of the correct figures in order to make an informed decision.

If it was 3.75% then some might choose to accept the merchant's 3%, if that is what is on offer.

crusty_toenail

lol, the joys of living in northern ireland with sterling and having euros for currency 5 miles from your house, along with sneaky banks and credit card companies!

well i bought the flights and hotel separately and saved £800 against the package holiday price, so i guess you have to accept it's only a small price to be ripped off in total.