I am confused by Santander Zero's exchange rate

hss

I usually use my Nationwide credit card when going abroad, but after constantly hearing about Santander Zero & Halifax Clarity card both being free to use got the Santander Zero.


Having used it both in Europe & most recently USA, on getting my credit card statements I have found the currency conversion rate for the Santander Zero is much less than Nationwide, thus it equates to paying more than the rate quoted on Nationwide which was a higher exchange rate, so the payment was less. Is this why the card is advertised as being "free" when in fact they use such low exchange rates to convert they are clawing back their fees by using such lower rates & yes I am aware they can change daily, but not at such a big difference.


Would they be willing to buy back my unused currency at their low exchange rates so I get more for my money? I don't think so somehow!

adindas

hss wrote: »

I usually use my Nationwide credit card when going abroad, but after constantly hearing about Santander Zero & Halifax Clarity card both being free to use got the Santander Zero.

Having used it both in Europe & most recently USA, on getting my credit card statements I have found the currency conversion rate for the Santander Zero is much less than Nationwide, thus it equates to paying more than the rate quoted on Nationwide which was a higher exchange rate, so the payment was less. Is this why the card is advertised as being "free" when in fact they use such low exchange rates to convert they are clawing back their fees by using such lower rates & yes I am aware they can change daily, but not at such a big difference.

Would they be willing to buy back my unused currency at their low exchange rates so I get more for my money? I don't think so somehow!

I believe you are talking about Santander Credit card (e.g Master Card) and I am assuming you are clearing the balances immediately so the the interest rate does not come into equations.

The difference could be caused by the fact that Santander Zero CC is using Mastercard Exchange rate while Nationwide CC is using Visa .

In many cases Mastercard is marginally better than Visa. Although it is very rare, but in a few occasions Visa exchange rate is better than MasterCard.

Another possibility is that you are not comparing it at the same time frame.

agrinnall

Santander Zero uses the Mastercard exchange rates, you haven't said which Nationwide card you have but it is probably a Visa card, so will use their rates. They may be slightly different but I wouldn't expect it to be significantly different. Can you give some examples of the rates on your statements and the applicable dates?

eDicky

You need to show some figures and dates in order to demonstrate this 'big difference' in rates.

Which Nationwide card is it and did you actually use it or are you seeing the rates on Visa Europe website, or where?

daveyjp

Interbank rates change daily, as you will see by the changing exchange rate over each day of purchase.

I don’t believe it is possible to state one card uses a lower rate as there are too many factors to consider.

hss

Thanks for all your replies. Here are the details based on our recent trip to the USA.


I have a Santander Zero MasterCard credit card.
On 26th Nov., the exchange rate used was US $ to £1 was 0.7512.


My husband has a Nationwide Classic Visa credit card.
On 28th Nov. his exchange rate $ to £ was 1.317676 and also the same date for another transaction was $ to £ 1.317751


I understand that rates can fluctuate, go up as well as down, but there is a big difference between the 2 dates, and as you are obviously aware when you go to buy any currency, it may differ by 1 point maybe here & there, but this is quite a big difference, which again I feel Santander take their fee by offering a lower rate. I don't see or understand why there should be a difference between Visa & MasterCard. They should be the same so that the customer doesn't feel ripped off. It would be nice if they offered me this rate to buy back currency but when you check any source, it is always more to sell back, so why should Santander charge me this low rate?

YorkshireBoy

2 days apart.

1.4 cents difference between MC & Visa.

Not really a 'big difference' is it?


Penny dropped?


You actually got a better rate with Santander at 1.331203


Feel better now?

hss

Actually YorkshireBoy it is Nationwide with the better exchange rate of 1.317 not Santander..??

SnowTiger

hss wrote: »

Thanks for all your replies. Here are the details based on our recent trip to the USA.


I have a Santander Zero MasterCard credit card.
On 26th Nov., the exchange rate used was US $ to £1 was 0.7512.


My husband has a Nationwide Classic Visa credit card.
On 28th Nov. his exchange rate $ to £ was 1.317676 and also the same date for another transaction was $ to £ 1.317751

My guess is you're comparing apples with pears.

Santander Zero: £1 = $0.7512, therefore £1 = $1.33.

Nationwide: £1 = $1.32.

Santander Zero wins!

YorkshireBoy

hss wrote: »

Actually YorkshireBoy it is Nationwide with the better exchange rate of 1.317 not Santander..??

You seem to be making a statement, yet ending it with a question mark like you're not sure.

You've mixed up your pounds and dollars in the Santander line. Each dollar cost you 75.12p

1 divided by 0.7512 is 1.331203

SnowTiger

hss wrote: »

Actually YorkshireBoy it is Nationwide with the better exchange rate of 1.317 not Santander..??

Generally, people want to get more dollars for their pounds.