Cashback on foreign spending? Capital One Classic Extra

maninwhitecoat

Hi all, as the title says, is the 0.5% cashback also "earned" on foreign spending on this card or is it on sterling spending only?

The website is a little bit confusing as it says you earn "0.5% on everything", but under the Foreign Fees section,

"Can I pay in Pounds Sterling when travelling abroad?

Yes, you can. Some merchants and retailers will give you the option to make payment in Pounds Sterling. If you go ahead and use your Classic Extra card to pay in Pounds Sterling, you'll earn up to 0.5% cashback on purchases, just as you would at home."

I can't find anywhere which explicitly says that cashback is not earned on transactions in a foreign currency so looking to hear from people who have the card already (or can read better than I!)

Thanks!

zerog

maninwhitecoat wrote: »

Hi all, as the title says, is the 0.5% cashback also "earned" on foreign spending on this card or is it on sterling spending only?

The website is a little bit confusing as it says you earn "0.5% on everything", but under the Foreign Fees section,

"Can I pay in Pounds Sterling when travelling abroad?

Yes, you can. Some merchants and retailers will give you the option to make payment in Pounds Sterling. If you go ahead and use your Classic Extra card to pay in Pounds Sterling, you'll earn up to 0.5% cashback on purchases, just as you would at home."

I can't find anywhere which explicitly says that cashback is not earned on transactions in a foreign currency so looking to hear from people who have the card already (or can read better than I!)

Thanks!

Cashback is on all spending

Do not use DCC

ic

Be aware that you may be getting 0.5% cashback, however the retailer will probably be adding 3% or more to the cost of the transaction in order to charge you in pounds. Get a card that gives you 0% commission on foreign transactions instead - it'll be cheaper.

greenorange

ic wrote: »

Get a card that gives you 0% commission on foreign transactions instead - it'll be cheaper.

The CapitalOne Classic Extra does have 0% commission on foreign transactions...

antonymp

I bought Tickets to Universal Studios from Walmart in Florida back in March while on Holiday using my Capital One Classic Extra and didn't incur any foreign transaction charges, I also got the 0.5% Cashback on the purchase.

System

Good to know.

The Nationwide Select card doesn't pay 0.5% cashback on non-Sterling transactions.
The Halifax Clarity Reward card doesn't seem to differentiate.

antonymp wrote: »

I bought Tickets to Universal Studios from Walmart in Florida back in March while on Holiday using my Capital One Classic Extra and didn't incur any foreign transaction charges, I also got the 0.5% Cashback on the purchase.

Biggles

maninwhitecoat wrote: »

If you go ahead and use your Classic Extra card to pay in Pounds Sterling, you'll earn up to 0.5% cashback on purchases, just as you would at home.

I don't like the 'If'. It certainly seems to imply that you only get the 0.5% cashback if you pay in GBP - which, as already suggested, will cost you anywhere from 3% to 5% (or even much more, as it's completely unregulated).

ic

That's exactly how I'm reading it, cashback only on the pound sterling transactions. I know my Barclaycard cashback cards don't pay cashback on foreign transactions - hence I don't touch them when abroad and instead use my Santander zero card and always pay in the local currency.

The Captial One FAQ states:

CAN I PAY IN POUNDS STERLING WHEN TRAVELLING ABROAD?

Yes, you can. Some merchants and retailers will give you the option to make payment in Pounds Sterling. If you go ahead and use your Classic Extra card to pay in Pounds Sterling, you'll earn up to 0.5% cashback on purchases, just as you would at home.

If you request to pay in Pounds Sterling, the amount of your transaction will be converted according to the exchange rate the merchant or retailer is offering at that time. Retailers offering this option will generally set their own exchange rates. These may be less competitive than those provided by Capital One. You should therefore check if the exchange rate being offered is reasonable before completing the transaction.

If you're happy with the rates, just pay in Pounds Sterling to keep earning up to 0.5% cashback on all purchases.

The last line is the important bit.

[Deleted User]

I used this in Russia and the conversion rates were impeccable, I really recommend this card.

guesswho2000

ic wrote: »

That's exactly how I'm reading it, cashback only on the pound sterling transactions. I know my Barclaycard cashback cards don't pay cashback on foreign transactions - hence I don't touch them when abroad and instead use my Santander zero card and always pay in the local currency.

The Captial One FAQ states:

The last line is the important bit.

I'd tend to agree, I expect the banks make less money, or even some sort of loss due to forex fluctuations, on foreign transactions so they try and encourage spending in sterling.

That said, Aqua Reward used to pay 3% on all transactions with no fee! but I think they were trying to attract sub prime business in the hope there'd be some money to be made from defaulting or interest payments.

As heng leng stated, Nationwide don't pay it on their Select card, and technically, neither do Halifax, as the £5 is a reward payment on £300 spending, as opposed to cashback (if you spend £299.99, you get nothing, if you spend £10 million, you still only get a fiver).

I spend abroad a lot, and the saving on forex fees more than outweighs any kind of cashback we can get in the UK.