Can I avoid interest charges on overseas ATM withdrawls

Mozza38

I’m hoping someone can answer a question for me?
I have a Halifax Clarity CC for spending when abroad, without incurring charges (pay off IN FULL each month 😉) but I understand that interest is charged from Day 1 for cash withdrawls at overseas ATM’s? What if I were to put £GBP INTO my CC account before travelling, which would cover the withdrawls; would I then avoid any interest charges?
I’m planning to visit several countries soon and don’t wish to carry lots of different currencies with me, but will need some day-to-day cash.
Thanks for any advice
Cheers
Mozza

eskbanker

Mozza38 wrote: »

What if I were to put £GBP INTO my CC account before travelling, which would cover the withdrawls; would I then avoid any interest charges?

Pre-loading in this way is a breach of clause B7.3 of the card's Ts & Cs, as per https://www.halifax.co.uk/creditcards/help-guidance/terms-and-conditions/clarity-card/:

You must not pay us more than you owe when you make payments to your account, or transfer funds from another credit or store card if this creates a credit balance on your account.

The usual response to this question on here is to either use online banking to pay while abroad (once the transactions have appeared on the card statement) or simply to wait until your return and accept the modest interest charges, which would typically be tiny relative to the overall cost of a big multi-currency multi-country trip sch as the one you have in mind....

Mozza38

Thanks very much for your reply eskbanker, I had no idea that this was not allowed!!!

agrinnall

Perhaps now is the time to cast your eye over your card's terms and conditions then (which you have signed up to and are bound by), in case there's anything else important that you're not aware of (and you never know, you might find out something that's to your advantage that you also didn't know about).

AllieKat

A good option would be a current account with no ATM withdrawal fees. I really love Monzo, and it's my main current account. You get £200 fee-free ATM use a month, which should be sufficient for almost any trip (exception - high cost, low card acceptance countries like Japan).

Starling has no limit on this, but the overall product impresses me less.

PeacefulWaters

Clarity charged me around 50p on a couple of larger ATM withdrawals in the USA where I sent a Faster Payment to the credit card account after they came through on my online transactions (pre-statement issue).

While it would be nice to get this down to zero (and Barclays now have a travel credit card that would achieve this), in comparison to the amount I spent on the holiday (and even a drink in a bar overseas) the 50p really didn't matter.

Mozza38

I like your idea PeacefulWaters and think I’ll follow your lead on this����

chattychappy

Mozza38 wrote: »

I like your idea PeacefulWaters and think I’ll follow your lead on this����

Yes, certainly the way to go. Most of my withdrawals are in Asia, I usually take £300 to £500 a time. Send payment a day or two later. Only get charged pence.

Well my monthly rate is about 1%, so you can do the maths yourself.

1% on £300 is about 10p a day!

(Your rate might be different.)

Bear in mind, cards often get blocked overseas (even if you tell them your plans in advance). So have backups and/or never run yourself right down.

gt94sss2

eskbanker wrote: »

The usual response to this question on here is to either use online banking to pay while abroad (once the transactions have appeared on the card statement) or simply to wait until your return and accept the modest interest charges, which would typically be tiny relative to the overall cost of a big multi-currency multi-country trip sch as the one you have in mind....

When I used to live overseas, I would do it even sooner - as soon as the available balance changed on the transaction date itself - so before the transaction showed on the statement. This always worked for me

The downside is that the figure that eventually appears on our statement is occasionally slight different but you would be talking pennies..

chattychappy

gt94sss2 wrote: »

When I used to live overseas, I would do it even sooner - as soon as the available balance changed on the transaction date itself - so before the transaction showed on the statement. This always worked for me

The downside is that the figure that eventually appears on our statement is occasionally slight different but you would be talking pennies..

Yes I've often done that. Easy if you're settled in somewhere.

If you're on a trip, I think it really comes down to the availability of a good connection and being somewhere where it is safe to use it. At 10p a day (or whatever) on a trip that might have cost you thousands, it can be money well spent not to feel the need to instantly retire to a cafe in order to make the payment.