Credit Card Overseas Fees

Glee68

2.99% to use credit cards overseas!!

I suspect many people will return from this year's holiday to notice that their credit card bills now show that we get charged around 3% for the privilege of using our credit card overseas. This is on top of the fee they charge the shop/restaurant and the % they skim off on the exchange rate deal.

Up until now this cost was hidden in the overall exchange rate fee but the financial regulator has insisted that this fee is seperated out. When I asked my credit card how long they've been doing this they said forever. I had no idea. Why would you assume that it worked any differently than at home? You know they don't give you the best exchange rate - I always saw that as part of the deal that benefited them but +3% on top of that? I would have used other ways of paying.

QUESTION? I intend to take this further with the credit card companies - I want my 3% back. Over the years this will be £thousands. Is there a PPI type class action planned? It feels like a scandal of that size. Does anyone have any recommendations?

OllyM

It's not going to happen. The fee has always been clearly stated in card summary boxes and people have just ignored it until recently when legislation changes have forced them to show it more clearly.

There are cards available with no fee - get one of those for future use and be glad that the new legislation has highlighted it to you!

Oh and most cards use the Mastercard/Visa rate so you do get the best exchange rate possible, less the fee. I think there are a few exceptions, perhaps RBS Group cards?

hardleyouth

Yeah, using your card to pay for items abroad is actually getting you a far better rate than if you paid using cash which you will get a poor poor exchange rate for (+ commission), this is providing its a Visa or Mastercard that is, the exchange rate is set by them when paying in local currency, if you chose to pay sterling abroad then the exchange rate is set by the vendor and is usually poor.

All cards charge a fee for foreign transactions, always have, both debit and credit, unless its specifically stated and advertised otherwise.

grumbler

Glee68 wrote: »

2.99% to use credit cards overseas!!

...

Up until now this cost was hidden in the overall exchange rate fee...

It was hidden in the statements, but was always clear in "fees and charges" and even in 'summary boxes'.

guesswho2000

grumbler wrote: »

It was hidden in the statements, but was always clear in "fees and charges" and even in 'summary boxes'.

^This.

Anyway, 2.75% (or whatever) fee for using your card, versus an exchange rate about 3% below interbank for changing up your cash at a bureau de change. Is it so bad?

Fair enough, yes it is, but there's fee free cards which solve that! My point is that it's not just using cards which will screw you for overseas currency.

And don't get me started on dynamic currency conversion. You pay in GBP, so aren't charged a bean by your bank, but the shop's card processing provider creams off 5% or more! Lovely.

I expect we'll all be able to sue all the above in due course, after all, why should we have to read T&Cs or take responsibility for our own actions :rotfl::rotfl:

DunPin

Glee68 wrote: »

Does anyone have any recommendations?

Yes, read the terms and conditions in the future as its clearly stated (now at least). I personally am more peeved off at Lloyds for charging me more for my debit card transactions (my own fault, should've double checked fees) than what Barclaycard charged for credit purchases, I've learnt my lesson with Lloyds :rotfl:

guesswho2000

DunPin wrote: »

Yes, read the terms and conditions in the future as its clearly stated (now at least). I personally am more peeved off at Lloyds for charging me more for my debit card transactions (my own fault, should've double checked fees) than what Barclaycard charged for credit purchases, I've learnt my lesson with Lloyds :rotfl:

For the record, not all debit cards are evil (Metrobank & N&P being particularly good in fact), but there are some debit cards from hell, which charge a fortune - LTSB, Halifax, Santander, RBS/NatWest & IF, spring to mind but, in general, a credit card is a better option (in the event your card is stolen/cloned, it's the bank's money being plundered, not your current account)

scott1358

I came back from Canada recently and was shocked to discoverer how cheap it was to use my first direct gold credit card. The exchange rate was excellent, much better than the paltry rate on a cash travel card I got to take with me. If I'd known it was such good value I would have used it for more transactions.

:beer:

grumbler

scott1358 wrote: »

...The exchange rate was excellent,

I hate to disappoint you, but they charge 2.99% for the conversion: http://www2.firstdirect.com/1/2/credit-cards/gold-card. I don't know any UK bank that charges more: overseas cards charges

If your travel cash card charged even more you managed to chose some pretty rubbish card: Top overseas prepaid cards

scott1358

grumbler wrote: »

I hate to disappoint you, but they charge 2.99% for the conversion: http://www2.firstdirect.com/1/2/credit-cards/gold-card. I don't know any UK bank that charges more: overseas cards charges

If your travel cash card charged even more you managed to chose some pretty rubbish card: Top overseas prepaid cards

I'm not disappointed, indeed I'm still very pleased. Even with the 2.99% the exchange rate was excellent for most transactions. And for info I had the Travelex Cash Passport - which had a worse exchange rate than the credit card.

opinions4u

Glee68 wrote: »

QUESTION? I intend to take this further with the credit card companies - I want my 3% back. Over the years this will be £thousands. Is there a PPI type class action planned? It feels like a scandal of that size. Does anyone have any recommendations?

They charged you what they told you they would charge you. In black and white.

Recommendation? Don't think you can start a bandwagon and undo what's gone. Get a Halifax Clarity Card and improve your future.