Virtual credit card

Colin1866

Hi,

I want to make regular payments to a website (piano lessons) that charges in USD but doesn't use Paypal. My debit card doesn't handle foreign currency and I don't have a credit card. I'm thinking of a virtual credit card where I top it up to the required amount from my UK bank account in GBP just before the monthly payment is due.

Is this the best solution? Are there some virtual cards that are free and with good exchange rates?

Thanks for any advice

Col.

MorningcoffeeIV

Colin1866 said:

Is this the best solution? Are there some virtual cards that are free and with good exchange rates?

No. The best solution would be a real credit card with no foreign exchange fee.  However, they're more premium so you may not be able to get one if you have a thin history. 

FD have also just dropped forex fees from their debit cards, as an alternative solution.

Colin1866

I should have said, I'm not able to get a credit card or I would have done.
Sorry but what is FD?

la531983

Chase debit card, Monzo debit card. Both have no fee involved and no credit check if not applying for overdraft facilities (which I dont think Chase offer anyway)

Colin1866

Are there any virtual credit cards that anyone would recommend? They seem a lot easier to set up than bank accounts and debit cards. I need to make just one transaction a month in USD so new bank accounts/debit cards are more than I actually need.

la531983

Colin1866 said:

Are there any virtual credit cards that anyone would recommend? They seem a lot easier to set up than bank accounts and debit cards. I need to make just one transaction a month in USD so new bank accounts/debit cards are more than I actually need.

There are numerous threads on this forum with people posting that their bank account has been frozen due to suspicious activity, and as a result they have access to no money and cant feed themselves.

Therefore its probably prudent to have a second account on the go anyway, you may as well make it one which wont charge you a forex fee, plus 1% cashback with Chase on all purchases (small list of excemptions), even foreign ones, is handy.

Colin1866

la531983 said:

Colin1866 said:

Are there any virtual credit cards that anyone would recommend? They seem a lot easier to set up than bank accounts and debit cards. I need to make just one transaction a month in USD so new bank accounts/debit cards are more than I actually need.

There are numerous threads on this forum with people posting that their bank account has been frozen due to suspicious activity, and as a result they have access to no money and cant feed themselves.

Therefore its probably prudent to have a second account on the go anyway, you may as well make it one which wont charge you a forex fee, plus 1% cashback with Chase on all purchases (small list of excemptions), even foreign ones, is handy.

Thanks, that's a good point and well worth seriously considering.

born_again

Colin1866 said:

Hi,

I want to make regular payments to a website (piano lessons) that charges in USD but doesn't use Paypal. My debit card doesn't handle foreign currency and I don't have a credit card. I'm thinking of a virtual credit card where I top it up to the required amount from my UK bank account in GBP just before the monthly payment is due.

Is this the best solution? Are there some virtual cards that are free and with good exchange rates?

Thanks for any advice

Col.

Strange. Which bank is this with?

As cards are regulated by Visa/Mastercard & there is no block on foreign transactions. But you may incur a charge for this.

jbrassy

Starling Bank do not charge fees on overseas spending and also offer virtual cards. 

If you're really against setting up a bank account, Revolut is also an option.

Colin1866

born_again said:

Colin1866 said:

Hi,

I want to make regular payments to a website (piano lessons) that charges in USD but doesn't use Paypal. My debit card doesn't handle foreign currency and I don't have a credit card. I'm thinking of a virtual credit card where I top it up to the required amount from my UK bank account in GBP just before the monthly payment is due.

Is this the best solution? Are there some virtual cards that are free and with good exchange rates?

Thanks for any advice

Col.

Strange. Which bank is this with?

As cards are regulated by Visa/Mastercard & there is no block on foreign transactions. But you may incur a charge for this.

It's Metro Bank.

DullGreyGuy

I signed up for Netflix whilst overseas (for 6 months) and though I declared my home address etc correctly in the UK they've always charged me in the local currency of where I was at the time (which is great as its cheaper than the UK price). I just use a Starling account, they charge the virtual debit card each month and every now and then I top up the account to cover another couple of months or so. 

As long as you're in the normal databases for IDing then opening a Starling account is as easy as opening a prepaid credit card and no FX fees (direct or indirect). Plus when going on hols just add extra funds etc.