Tesco Credit Card stung me for £50

JethroUK

Had a Tesco Mastercard for about 6 years or so (I'm not a bad customer) - only got Tesco so I can get clubcard point, all my other banking is with First Direct

Paid for my hotel with it £1799.33 & just got my statements and they charged me 2.75% "Foreign Exchange Fee" = £49.48

Called them and told them I'm not very happy about this, but she seem to think this was pretty standard practice

My sis-in-law books hotels for a living - that's what she does - and she says shes never been charged for this privilege before

Anyway the lady at Tesco decided to stick to the process so I decided to cancel the account/card because I think its too much and I need to buy other stuff from Europe/Wherever is cheapest

I figure I'll get a credit card from First Direct (shame no clubcard points ) but I posted because I just wondered whether this is normal practice on Credit/Debit cards?

I could have paid with my First Direct debit card - would they have charged me £50?

OllyM

Yes, it is normal practice. Almost all cards charge this and you will have been charged it in the past but the rules have recently changed so card companies can no longer hide the fee in the exchange rate and now have to show it separately.

Halifax Clarity, Capital One Aspire World/Classic Extra, Post Office, Saga and Nationwide Select have no foreign exchange fee and are worth looking in to if you spend money abroad.

See the MSE guide here - http://www.moneysavingexpert.com/travel/cheap-travel-money

reclusive46

JethroUK wrote: »

Had a Tesco Mastercard for about 6 years or so (I'm not a bad customer) - only got Tesco so I can get clubcard point, all my other banking is with First Direct

Paid for my hotel with it £1799.33 & just got my statements and they charged me 2.75% "Foreign Exchange Fee" = £49.48

Called them and told them I'm not very happy about this, but she seem to think this was pretty standard practice

My sis-in-law books hotels for a living - that's what she does - and she says shes never been charged for this privilege before

Anyway the lady at Tesco decided to stick to the process so I decided to cancel the account/card because I think its too much and I need to buy other stuff from Europe/Wherever is cheapest

I figure I'll get a credit card from First Direct (shame no clubcard points ) but I posted because I just wondered whether this is normal practice on Credit/Debit cards?

I could have paid with my First Direct debit card - would they have charged me £50?

Its a pretty normal practice on pretty much every credit and debit card in the country apart from some exceptions.

Have a look at http://www.moneysavingexpert.com/travel/cheap-travel-money

I'd suggest the Capital One Aspire World, as you get rewarded in the UK with money back and its free abroad. Although if you do a lot of withdrawing money, the Halifax clarity is probably better.

opinions4u

I figure I'll get a credit card from First Direct

Here's a link:
https://www1.firstdirect.com/1/2/credit-cards/credit-card?WT.ac=FSDT_CTA_LEND_CC1002

Exchange Rate Adjustment 2.99% added to the Visa Exchange Rate

JethroUK

Is there a cheaper way to pay for your foreign hotel fee without using a special credit card?

Direct bank transfer maybe?
Cheque?

Do all these attract exchange fee?

Maybe paying a small deposit and pay the rest in Euros when you get there?

Old_Joe

I won't say with certainty, but I believe Nationwide don't charge for overseas usage. Suggest you might care to check if that's correct.

chanz4

halifax clarity

izools

Old_Joe wrote: »

I won't say with certainty, but I believe Nationwide don't charge for overseas usage. Suggest you might care to check if that's correct.

Only with their "Select Credit Card". All other accounts of theirs attract foreign usage fees.

As above - Halifax Clarity and Capital One Aspire come highly recommended

bengal-stripe

JethroUK wrote: »

Is there a cheaper way to pay for your foreign hotel fee without using a special credit card?

Direct bank transfer maybe?
Cheque?

Do all these attract exchange fee?

Maybe paying a small deposit and pay the rest in Euros when you get there?

In a Bureau de Change you will find a different 'buying' and 'selling' rate. The official 'mid-market' rate is somewhere between the two advertised rates. These different rates are the reason the Bureau will make a profit.

Virtually everywhere there is a charge involved, when converting from one currency to another. Sometimes (paypal for example) you will not see a charge, but their conversion rate is about 3% lower than mid-market.

dalesrider

JethroUK wrote: »

My sis-in-law books hotels for a living - that's what she does - and she says shes never been charged for this privilege before
is normal practice on Credit/Debit cards?

I could have paid with my First Direct debit card - would they have charged me £50?

Credit card co's are now starting to list the Foreign Exchange Fee on its own and not built into the price.

Even on a debit card there is a exchange rate.

giblet10

If you live near a Metro Bank they will issue you with their credit card on the spot (assuming you pass the scoring etc) and I think you have to open a bank account as well - but it's all free.