Using a debit card abroad

Ballard

For several years I've been using debit cards whilst abroad as I often go travelling for three weeks and carrying that much cash isn't always practical. I buy some currency with the intention of using an ATM after a week or so. I know that this mightn't be the cheapest option but I'm happy that the convenience of this arrangement is worth a few quid here or there.




That said, last year I went away in November and used a First Direct card to withdraw around £180 of KRW. The following week I used my Santander 1-2-3 account to withdraw £120 worth.
First Direct had charges totalling around £7.45 whereas Santander charged roughly £1.20 (sorry, I can't remember the exact amounts).


I Queried the FD fees and they refunded the whole amount. I am quite sure that the fee was in line with their T&Cs but that's a huge markup by FD. Fair play to them for refunding without question, though.
My point is to be aware of this if you're using ATMs abroad and find out the fees beforehand and if you have several options check which is cheaper.

Archi_Bald

Have you seen this: http://www.moneysavingexpert.com/travel/cheap-travel-money

grumbler

Ballard wrote: »

...
I Queried the FD fees and they refunded the whole amount. I am quite sure that the fee was in line with their T&Cs but that's a huge markup by FD. Fair play to them for refunding without question, though.

Quite sure? Why?

>> Interest Rates & Charges

For non-Sterling (foreign currency) transactions we will charge a fee of 2.75% of the Sterling amount of the transaction. This fee will now be shown as a separate line on your statement as a ‘Non-Sterling Transaction Fee’.
...Cash Machines:
There is a non-Sterling cash fee currently 2% (minimum £1.75, maximum £5.00) for non-Sterling cash withdrawals at a self-service machine outside the UK, or in the UK where we carry out the currency conversion. First Directory customers do not pay this fee.

For Santander see General Terms & Conditions, p.17

Ballard

Yes, I'd read that. The preloaded cards such as that offered by Travelex, for example, didn't offer a great exchange rate compared to that offered by the best Bureaux de Change. Additionally, I go to some unusual places and their currencies won't be covered by these cards.
Getting a credit card which doesn't add the loading would be a good idea and I might look into that but, again, I've regularly been to countries where credit cards just aren't accepted so it's not the perfect solution in my case.

Ballard

grumbler wrote: »

Quite sure? Why?

>> Interest Rates & Charges

It's quite possible that part of the fee was taken in Korea. The bank ATMs over there don't accept foreign bank cards and so you have to find one in a convenience store. Quite why Santander's was more reasonable I don't know. The FD charge was made up of two entries so this may be the reason.

grumbler

Ballard wrote: »

I've regularly been to countries where credit cards just aren't accepted so it's not the perfect solution in my case.

Not accepted at all or for purchases only? What about ATMs?

Ballard wrote: »

It's quite possible that part of the fee was taken in Korea.

AFAIK, ATM always gives a warning if there is a local ATM charge

GooliesOfFire

Ballard wrote: »

It's quite possible that part of the fee was taken in Korea. The bank ATMs over there don't accept foreign bank cards and so you have to find one in a convenience store. Quite why Santander's was more reasonable I don't know. The FD charge was made up of two entries so this may be the reason.

Not entirely true. I travel to Korea quite often. Yes, many local banks don't accept foreign cards, but no such problem when you use ATMs of big national banks.

I use N&P Debit Visa with no trouble.

Ballard

GooliesOfFire wrote: »

Not entirely true. I travel to Korea quite often. Yes, many local banks don't accept foreign cards, but no such problem when you use ATMs of big national banks.

I use N&P Debit Visa with no trouble.

Okay. I'd read that banks didn't accept foreign cards and when I tried mine in one it was rejected so I didn't bother trying again.

Ballard

grumbler wrote: »

Not accepted at all or for purchases only? What about ATMs?

I wouldn't use a credit card in an ATM unless it was an emergency. The fees aren't much fun. Quite often cash is the only way for purchases. Try getting by in India or Ethiopia with plastic and let me know how you get on.

Ballard

grumbler wrote: »

AFAIK, ATM always gives a warning if there is a local ATM charge

There may have been a warning. I don't recall.

patientperson

GooliesOfFire wrote: »

Not entirely true. I travel to Korea quite often. Yes, many local banks don't accept foreign cards, but no such problem when you use ATMs of big national banks.

I use N&P Debit Visa with no trouble.

I also use N&P Debit card with no problem. Best to advise them if you visit countries not previously advised. No bank charges so far.

Cumberland BS also have been reliable for me in the past.