Using a credit card abroad

NiftyDigits

jackieblack wrote: »

Is it?
Which is correct, but I don't anything that claims differently in the post you quoted :huh:
really?
But that's not what they said,


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 )


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


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

The OP wanted to know which of her cards she should use.

The answer is/was the Nationwide..

No reason for Tesco to be even mentioned again.

But I understand your point.

It was assumed that she already had the cash. Since she wrote that she would be taking cash.
Also since she mentioned Paris, I guessed it would be a short trip, so not that much cash involved anyway.


So question answered, we digressed on to other subjects.

Mrs_pbradley936

Thank you all - I had a weekend in Paris via Eurostar, Friday morning to Monday afternoon. Hotel (including breakfast) train and cabaret show on Sunday night previously paid for. I bought €200 from Tesco with a debit card and used the Nationwide card throughout. I came back with €40 in cash. Bought 2 dinners, 3 lunches, bottles of water, glasses of wine and beer and paid for museum entrance and metro tickets. There were two of us.

thinkysaurus

NiftyDigits wrote: »

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

Firstly Tesco......

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.

I'm back!!

Just because you post a lot and I don't, doesn't automatically make you right and as it happens, you're not!


The post wasn't wrong at all and you clearly haven't read it properly, although I accept that the Tesco/MasterCard data could have been better worded to make it clear MasterCard set the daily rate and not Tesco.


1. The rate IS set DAILY on the MasterCard Website (as the Tesco Card is a MASTERCARD) and I used live examples from yesterday.


2. The calculations are 100% correct and the tourist rates are also very valid as the MasterCard conversion rates are significantly higher, therefore making the card almost as cheap to use compared to changing your £ into € .

As for the calculation I haven't confused anyone except you it seems....
122€ x 1.0275= 125.36€
Using yesterdays daily exchange rate of £1=1.2489€ to convert back to £ does indeed give a charge to your card of £100.37.

3. The link posted previously by jackieblack is the one you asked for.

The final point of my post was the convenience and security of using the card rather than carry cash, for around 37p per £100.

grumbler

Your calculations were correct, but overcomplicated and confusing as a result.

In your example the BdC charged 1.2489/1.22-1=2.37%.
The credit card charges 2.75%, i.e. 0.38% more or 38p per £100.
As simple as that.

This is ignoring a negligibly small difference between the interbank rate and Mastercard rate.

zagfles

thinkysaurus wrote: »

The final point of my post was the convenience and security of using the card rather than carry cash, for around 37p per £100.

We weren't comparing spending on cards with taking cash bought at a BdC, we were comparing different cards. We all know using cards is almost always better.

I see the OP is back and has taken our advice and used the Nationwide card, not the Tesco one. Although Mastercard seem to give marginally better rates than VISA on average, the difference in charges will easily outweigh this, in Europe at least.

But suggest the OP gets a Clarity, Metrobank, or one of the other cards that don't markup the exchange rate for next time, and uses it for cash as well. Changing cash is out of the ark. Expensive and almost always unnecessary. ATMs do exist most places abroad, and where they don't it's generally better to take GBP and change abroad.

NiftyDigits

thinkysaurus wrote: »

I'm back!!

Just because you post a lot and I don't, doesn't automatically make you right and as it happens, you're not!


The post wasn't wrong at all and you clearly haven't read it properly, although I accept that the Tesco/MasterCard data could have been better worded to make it clear MasterCard set the daily rate and not Tesco.


1. The rate IS set DAILY on the MasterCard Website (as the Tesco Card is a MASTERCARD) and I used live examples from yesterday.


2. The calculations are 100% correct and the tourist rates are also very valid as the MasterCard conversion rates are significantly higher, therefore making the card almost as cheap to use compared to changing your £ into € .

As for the calculation I haven't confused anyone except you it seems....
122€ x 1.0275= 125.36€
Using yesterdays daily exchange rate of £1=1.2489€ to convert back to £ does indeed give a charge to your card of £100.37.

3. The link posted previously by jackieblack is the one you asked for.

The final point of my post was the convenience and security of using the card rather than carry cash, for around 37p per £100.

I'm glad that you are back.

I think that you have to admit a major fail for when it comes to this statement:

There are some very convoluted....

The real problem with your post, was that it wasn't designed to save the OP money at all, did not answer the OP question and was just convoluted. This is a website dedicated to saving money.

As have been mentioned before, we know all about the rates.

Any I understand your point, however badly worded.

Welcome to the board!

hunsbury0

guesswho2000 wrote: »

I second this. Also! Using the clarity card, being a credit card, protects your current account if something goes wrong - if I have a card cloned, I'd much rather it be a credit, rather than debit (especially as my mortgage payment goes from my FlexPlus account!).

I have the Clarity as my main card for abroad, for cash, the Select CC for purchases (as it has a higher limit, and was 0% for 12 months when I took it out, so I just used it by default), and the FlexPlus debit as a backup for cash only.

I also carry a Barclaycard, since, while they charge 2.99% flat fees for overseas transactions, with cash there is no minimum and, crucially, no interest if the balance is paid in full.

Also, having a Visa and a MasterCard helps when an ATM accepts one or the other - I've had an RBS machine in Romania not accept a RBS debit card as it only took MasterCard and ATMs in China and Ukraine not take MasterCard (Clarity card) so I've had to fall back on Visa (very urgently in Ukraine, as in I'd have missed a flight without it). I also carry at least one Amex - I've never come across a situation where I've had to use an amex because you couldn't use anything else, but you never know.

I have just come back from China & used my Halifax Clarity master card on ATMs without any problems (Bank of China & ICBC - atms)

raj5151

I have problem in HSBC card

wearside_2

I am making my first trip to Europe (Slovakia, Austria and Germany) and have a new Halifax Clarity Card that I intend to use. I have a few hundred Euros but after reading the Halifax Website it seems to me that it would be a good deal to use the card to withdraw more should the need arise. Is this correct and also on my final day should I withdraw a few hundred Euros for my next trip and pay this cash withdrawal off the same day? The Halifax Website indicates that I am on the right track:

Credit card details

Our fees and charges for using your credit card abroad vary depending on the card you have.
Clarity Card All other Credit
cards Non-sterling transaction fee 0% 2.95% Cash fee (also applicable for sterling
withdrawals) N/A 3% (min £3) Interest may be charged differently dependant on whether you have made a purchase or withdrawn cash. Please check your account terms or credit card fees, charges and interest for more information.
Compare the cost of spending or withdrawing €100 abroad using our credit cards*.
*The exchange rates used were the applicable rates for transactions processed on 2nd June 2014.
Purchase Clarity Card All other Credit
cards Original transaction €100 €100 Payment scheme exchange rate 1.229223 1.229223 Conversion to sterling £81.35 £81.35 Non-sterling transaction fee Nil £2.40 (2.95%) Final statement amount £81.35 £83.75 Cash withdrawal** Clarity Card All other Credit
cards Original transaction €100 €100 Payment scheme exchange rate 1.229223 1.229223 Conversion to sterling £81.35 £81.35 Non-sterling transaction fee Nil £2.40 (2.95%) Cash fee Nil £3.00 Final statement amount £81.35 £86.75 **This example assumes you allow us to convert the transaction from foreign currency to sterling. If you choose to allow the provider to convert the transaction to sterling, they may make a separate charge for conversion.

grumbler

wearside wrote: »

I am making my first trip to Europe (Slovakia, Austria and Germany) and have a new Halifax Clarity Card that I intend to use. I have a few hundred Euros but after reading the Halifax Website it seems to me that it would be a good deal to use the card to withdraw more should the need arise.

Is this correct

You can, but it's better just to pay by the card.

and also on my final day should I withdraw a few hundred Euros for my next trip

Why? Firstly, why do you need that much cash? Secondly, unless you want to gamble on £ falling, how is it better than just withdrawing when and where you need the cash?

and pay this cash withdrawal off the same day?

In fact, to avoid the interest you have to pay after you see the transaction in the online statement, that isn't necessarily the same day.