0% on purchases - is it just in the UK
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ClaireB14
Posts: 2 Newbie
in Credit cards
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
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Comments
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Yes, foreign exchange normally attracts a fee.0
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Do you know of any credit cards that don't charge for foreign purchases?0
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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.0
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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.0
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