0% on purchases - is it just in the UK

ClaireB14

I have applied for a M&S Bank Credit Card with a 0% purchases but when I have received the paper work it says it charges 3% for overseas purchase, is this normal? Thanks

[Deleted User]

Yes, foreign exchange normally attracts a fee.

ClaireB14

Do you know of any credit cards that don't charge for foreign purchases?

dresdendave

There are specialist cards for travel, Halifax Clarity for example, which do not charge a fee for non sterling transactions. However these are not likely to have a 0% purchases deal.

zerog

ClaireB14 wrote: »

I have applied for a M&S Bank Credit Card with a 0% purchases but when I have received the paper work it says it charges 3% for overseas purchase, is this normal? Thanks

The other posts have missed the point.

These refer to two different things.


The 0% on purchases is the interest rate, which is an ongoing rate that is added to your balance every month (unless you are interest-free because you always pay in full). Normally credit cards will have an interest rate of something like 18.9% APR, which is about 1.5% per month.

So every month, if you don't pay in full, your balance will accrue interest of 1.5%. If you spend £100, £1.50 of interest might be added to your balance if you don't pay it off. The 0% rate here means that no interest will accrue even when you don't pay in full.


The 3% is a one-time fixed charge which is added to the amount of any overseas purchases.

So if you buy something overseas for £100 equivalent, £103 will be added to your card balance straight away.


What I don't know is whether the £3 foreign fee is charged separately, and if it is, whether it counts as a purchase so is eligible for the 0% interest rate.