None-sterling transaction charges

CLAPTON

as the 'charges' are displayed separately you can directly compare the exchange rate used by the CC with those advertised on the high street for money exchange.

grumbler

The actual exchange rates have to be the same or very close to https://www.mastercard.com/global/currencyconversion/ and very close to interbank rates: http://www.oanda.com/currency/converter/

Victorthe2nd

Thanks Grumbler. Out of interest, I had a chat with NatWest this morning. They tell me that the change to regs was advised to cardholders in October 2012 - this message was via a change to the Summary Box that appears on the back of a statement. They seemed surprised that I hadn't spotted this and gave the impression that every cardholder religously went through this part of the statement with a fine tooth comb every month and were able to spot any such small changes. Hmm. They assure me that I am not paying any extra as the transaction charge was previously built-in, presumably to the forex rate that was managed for them by Visa, but couldn't comment on the fact that Halifax, via their Clarity Card and who are, presumably, subject to the same rules in terms of Mastrercard / Visa membership and therefore, presumably, use the same forex rates as NatWest, can offer a zero fee for none-sterling transaction charges. I'm going for a lie down now.

opinions4u

couldn't comment on the fact that Halifax, via their Clarity Card and who are, presumably, subject to the same rules in terms of Mastrercard / Visa membership and therefore, presumably, use the same forex rates as NatWest, can offer a zero fee for none-sterling transaction charges.

Perhaps the Nat West card on sale has other benefits that Halifax doesn't. Like an interest free period on new accounts?

Shop around. Read the small print. Work out what's best for you.

reclusive46

Halifax will probably still be getting charged a 1% fee (Outside of Europe) but they just absorb it.

CLAPTON

Victorthe2nd wrote: »

. They assure me that I am not paying any extra as the transaction charge was previously built-in, presumably to the forex rate that was managed for them by Visa, but couldn't comment on the fact that Halifax, via their Clarity Card and who are, presumably, subject to the same rules in terms of Mastrercard / Visa membership and therefore, presumably, use the same forex rates as NatWest, can offer a zero fee for none-sterling transaction charges. I'm going for a lie down now.

probably not

They will be given a figure by mastercard/visa at the forex rate.

Then your CC computers will add whatever adjustments they see fit; so different CCs and debit cards charge different rates for overseas purchases (sometime different for Europe and non Europe) and cash withdrawals.

chattychappy

Victorthe2nd wrote: »

They tell me that the change to regs was advised to cardholders in October 2012 - this message was via a change to the Summary Box that appears on the back of a statement. They seemed surprised that I hadn't spotted this and gave the impression that every cardholder religously went through this part of the statement with a fine tooth comb every month and were able to spot any such small changes. Hmm.

When CCs change T+Cs, they send out a leaflet highlighting the changes showing "old wording" and "new wording" and a comment as to the effect/reason/purpose.

cse

Let's say, for the sake of argument, that the £/$ exchange rate is 1.5, you get charged a 2.5% forex rate by your credit card, and you buy something for $150

Old system: $150 is converted to £100, then £2.50 gets added on as a foreign exchange fee. Your statement shows a single transaction of £102.50, and says that an exchange rate of £1 = $1.46-odd was used

New system: Your statement shows a transaction of £100 with an exchange rate of £1 = $1.50, plus a separate charge of £2.50 as a 'non-sterling transaction fee'

The overall cost is exactly the same, and the new system is much clearer, but if you haven't been properly informed about the change then all you'll be seeing is a load of fees that weren't there before