Shopping online with a foreign currency

PapaOscar1

I have been looking at ways to shop online where it is necessary to use a credit card number and pay in U.S. dollars. All the advice I read is for people using cards abroad and I assume that is the same as shopping in a foreign currency from the UK, is there any difference?

I found out about Halifax Clarity card on MSE and it sounds like it would be free of charges and exchange rates if used sensibly. I read a review of the card and at the bottom of the page it mentions a £10 'foreign currency charge'. I am wondering if anybody knows whether the card would actually be free to use for this? It seems too good to be true and the card's page is a bit short of info, but says 'Non-Sterling Transaction fee -None'. (My bank, Lloyds, would charge £10).

Also, I understand that payment protection is only for purchases over £100 so could there be a better way to do this? In case it matters, my first purchase would be a software download for $9.99.

Thanks.

YorkshireBoy

Check the date on the review!

Here's the current summary box...

http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/

EDIT: I see you've already linked to it.

Re your $9.99 purchase...whilst you won't get section 75 protection, you do have something called 'chargeback' available to you should you encounter problems.

grumbler

PapaOscar1 wrote: »

(My bank, Lloyds, would charge £10).

Really?.........

YorkshireBoy

grumbler wrote: »

Really?.........

Think OP is referring to payments made via Lloyds online banking, where the fee is indeed £10 for amounts less than £5K...

http://www.lloydsbank.com/online-banking/benefits-online-banking/international-payments.asp

PapaOscar1

YorkshireBoy wrote: »

Check the date on the review!
...
Re your $9.99 purchase...whilst you won't get section 75 protection, you do have something called 'chargeback' available to you should you encounter problems.

I noticed the date, but wasn't sure whether the fee applied to some smallprint somewhere that I hadn't found yet! I hadn't thought about chargeback, that would make me feel more confident. Thanks for the advice.

grumbler wrote: »

Really?.........

Yes, I read it here and after I logged in there was a link to estimate online payments, which also included a £10 fee. Unbelievable isn't it? I must admit I also find it hard to believe that there is no fee for the Clarity card!

This makes me wonder why people use other services that are potentially very expensive, is there something I have overlooked? Sceptical, aren't I ?!

YorkshireBoy

PapaOscar1 wrote: »

This makes me wonder why people use other services that are potentially very expensive

Ignorance...lethargy...overly sceptical...?

grumbler

PapaOscar1 wrote: »

Yes, I read it here and after I logged in there was a link to estimate online payments, which also included a £10 fee. Unbelievable isn't it? I must admit I also find it hard to believe that there is no fee for the Clarity card!

You seem to have missed the point.
Do your still not realize that you were looking in the wrong place?
The correct place is here: Current account charges (p.11);)

Although Lloyds debit card is one of the debit cards from hell according to MSE classification, you get charged only £1+2.99%=~£1.23, not £10 for $9.99 payment.

Re the international bank transfers, Halifax charge £9.50 for them, i.e. about the same as Lloyds.

PapaOscar1

grumbler wrote: »

You seem to have missed the point.
Do your still not realize that you were looking in the wrong place?
The correct place is here: Current account charges (p.11);)

Although Lloyds debit card is one of the debit cards from hell according to MSE classification, you get charged only £1+2.99%=~£1.23, not £10 for $9.99 payment.

Re the international bank transfers, Halifax charge £9.50 for them, i.e. about the same as Lloyds.

Then it took me ages to find the wrong information! When I log into my account there is a 'Tools' column on the right that starts with 'International payments', which opens an international payments calculator. It does not mention transfers or any other terminology. When filled out, it provides the following result:

Country UNITED STATES
Sterling amount 6.34 GBP
Currency amount 9.99 USD
Exchange rate 1 GBP =1.5746USD
Typical fees 10.00 GBP
Total Sterling cost 16.34 GBP

In the wording underneath it says "To make a payment, please click 'Make payment' next to the recipient in the list below". It seems from what I have read that sending money is different to making a payment; this specifically says 'payment', but also requires a recipient. I am still finding this simple issue very confusing, I might be tempted to get the Clarity card just to save time and effort. I guess this is why it's called Clarity.

Below the 'Current account charges' you linked to is an 'Overseas Payments and deposits' section (p12), which says:

International Payment online
Sending a payment up to £5,000 – £10 fee
Sending a payment of £5,000 or over – £17.50 fee

The 'debit cards from Hell' link is interesting, but I would never use a debit card for shopping online. I have a Lloyds Classic Credit Card and am still none the wiser about international shopping with it!

dzug1

The difference is between the online shopping site TAKING the money from your debit or credit card and you SENDING the money to an overseas recipient from your current account using the bank's transfer system.

grumbler

PapaOscar1 wrote: »

...I would never use a debit card for shopping online.

I don't see any difference for small purchases.

I have a Lloyds Classic Credit Card and am still none the wiser about international shopping with it!

As it's "no longer available" I can only guess that it's 'from hell' too for purchases outside Europe. For Europe it says 2.95%, but keeps silence about the charges outside it.
http://www.money.co.uk/credit-cards/credit-card-details/Lloyds-TSB/Classic-MasterCard.htm

PapaOscar1

dzug1 wrote: »

The difference is between the online shopping site TAKING the money from your debit or credit card and you SENDING the money...

I suppose the recipient's bank benefits from the extra money in the account so there's no charge for taking payment, but when sending, the sender's bank charges for processing the transfer.

grumbler wrote: »

I don't see any difference for small purchases...

I think that if a debit card is used fraudulently, the cardholder cannot recover any of the money regardless of the amount. Is that not correct? If it is, then surely it is better to avoid using it online.

grumbler wrote: »

As it's "no longer available" I can only guess that it's 'from hell' too for purchases outside Europe. For Europe it says 2.95%, but keeps silence about the charges outside it.

I didn't know my credit card was unavailable now! Too much of a lack of information, I would feel happier using something I understand better. I think I know enough about the Clarity card already.