Using a credit card abroad

King_Of_Fools

Ianwzzz wrote: »

I phoned Tesco to see if I would be charged for using my credit card in Jersey in restaurants etc. I was told I would be charged a small percentage. My wife who recalls us using it last time we went to Jersey without being charged, phoned them and she was told we would not be charged. Back now and waiting for the statement.

I have never been charged for spending in Pounds Sterling when abroad (Guernsey and Gibraltar).

Toe-Jam

NiftyDigits wrote: »

No, you can't. Butt out!

But since you did anyway

Actually you got it wrong. Visa is much worse in Europe.

US$ transaction on the 02/09/2014
VISA: 1.6561007439
Mastercard: 1.657501

I think you'll find those rates are the same. The bank (not Visa or Mastercard) rounds the exchange rate to 2 dp before applying it to the £ value. So they're both 1.66.

thinkysaurus

There are some very convoluted and childish replies and counter-replies on this thread, so here's what I think is a pretty simple example.... Although I accept it doesn't totally answer the question as to which card is cheapest, it maybe adds some perspective...


As of today, 9th Sept 2014 using your Tesco Credit Card for a purchase in Euro's would incur a charge of 2.75%; therefore if you purchase a [meal] for 122 euros, you would have 125.36 euro charged to your account. Stay with me...


Today...a competitive tourist exchange rate is around 1.22 euro to £1 (sorry cant find a euro symbol on keyboard ) therefore £100 would convert to 122 euro so meal costs £100 yes?


Tesco (MasterCard) use a daily conversion rate, available on their website which is considerably higher than the tourist rate and today that rate is 1.2489 euro to £1.


So! ... your purchase of 122 euro loaded by 2.75% becomes 125.36, converted back to ££'s at 1.2489 gives a final credit card statement charge for your meal of £100.37.

The point I'm making is, that unless you're spending many thousands, the convenience and (security?) of using your card abroad for around 37p per £100 must surely outweigh the risk of carrying lots of cash?


Have a great holiday OP!!

YorkshireBoy

sorry cant find a euro symbol on keyboard

Ctrl + Alt + 4

Fruit_and_Nut_Case

YorkshireBoy wrote: »

Ctrl + Alt + 4

Possibly only with Windows. I have to copy/paste with Ubuntu.

grumbler

YorkshireBoy wrote: »

Ctrl + Alt + 4

Or Alt Gr + 4
(right Alt key)

reclusive46

Fruit_and_Nut_Case wrote: »

Possibly only with Windows. I have to copy/paste with Ubuntu.

Its Option (Alt) + 2 on a mac. Maybe its the same on Unbuntu?

Fruit_and_Nut_Case

grumbler wrote: »

Or Alt Gr + 4
(right Alt key)

reclusive46 wrote: »

Its Option (Alt) + 2 on a mac. Maybe its the same on Unbuntu?

€€€€€€€€€€€€€€€€€€€€€€€€€

grumbler wins, but thanks both :T

NiftyDigits

thinkysaurus wrote: »

There are some very convoluted and childish replies and counter-replies on this thread, so here's what I think is a pretty simple example.... Although I accept it doesn't totally answer the question as to which card is cheapest, it maybe adds some perspective...


As of today, 9th Sept 2014 using your Tesco Credit Card for a purchase in Euro's would incur a charge of 2.75%; therefore if you purchase a [meal] for 122 euros, you would have 125.36 euro charged to your account. Stay with me...


Today...a competitive tourist exchange rate is around 1.22 euro to £1 (sorry cant find a euro symbol on keyboard ) therefore £100 would convert to 122 euro so meal costs £100 yes?


Tesco (MasterCard) use a daily conversion rate, available on their website which is considerably higher than the tourist rate and today that rate is 1.2489 euro to £1.


So! ... your purchase of 122 euro loaded by 2.75% becomes 125.36, converted back to ££'s at 1.2489 gives a final credit card statement charge for your meal of £100.37.

The point I'm making is, that unless you're spending many thousands, the convenience and (security?) of using your card abroad for around 37p per £100 must surely outweigh the risk of carrying lots of cash?


Have a great holiday OP!!

The problem with your explanation...is that it is wrong.

Firstly, Tesco has stated that it had stopped the practice of setting it's own rates.

But anyway, even if you were right about Tesco, your calculation can not possibly be right.
You have just confused yourself.
If Tesco charge 2.75% on top of the Mastercard rate, that is £2.75 on every £100, not £0.37p. What are you thinking?

You write about convoluted and childish...and then you write that!
You would have been better off keeping your head down.

Do post the link to the Tesco credit card conversion rate. I'd love to see it.

Her best bet is her Nationwide card, with a charge of nothing to 2%.

Posting about Tourist rates was unhelpful to your 'illustration', since they are no reference at all.
This is a website dedicated to saving money. We use VISA/Mastercard rates as a reference.

Three posts in fours years? I'm guessing that you won't be back for a while.

jackieblack

NiftyDigits wrote: »

The problem with your explanation...is that it is wrong.

Is it?

NiftyDigits wrote: »

Firstly, Tesco has stated that it had stopped the practice of setting it's own rates.

Which is correct, but I don't anything that claims differently in the post you quoted :huh:

NiftyDigits wrote: »

But anyway, even if you were right about Tesco, your calculation can not possibly be right.
You have just confused yourself.

really?

NiftyDigits wrote: »

If Tesco charge 2.75% on top of the Mastercard rate, that is £2.75 on every £100, not £0.37p. What are you thinking?.

But that's not what they said,

thinkysaurus wrote: »

As of today, 9th Sept 2014 using your Tesco Credit Card for a purchase in Euro's would incur a charge of 2.75%; therefore if you purchase a [meal] for 122 euros, you would have 125.36 euro charged to your account.

So! ... your purchase of 122 euro loaded by 2.75% becomes 125.36, converted back to ££'s at 1.2489 gives a final credit card statement charge for your meal of £100.37.

The point is that when €125.36 (€122 + 2.75%) is converted to sterling using the mastercard rate it = £100.37, ie the better exchange rate (compared to exchanging cash at BdC at €1.22/£1) almost (all but 37p) cancels out the 2.75% charge for using the cc.
(Although obviously using a fee-free card would be even better )

NiftyDigits wrote: »

Do post the link to the Tesco credit card conversion rate. I'd love to see it..

Yeah, I read it that way too to start with, it's the Mastercard rate, not Tesco rate.

thinkysaurus wrote: »

Tesco (MasterCard) use a daily conversion rate, available on their website which is considerably higher than the tourist rate and today that rate is 1.2489 euro to £1.

The mastercard rate is here https://www.mastercard.com/global/currencyconversion/