Santander 8.5% Markup in Spain

skind56

Santander charged me an 8.5% markup for exchanging pounds to euros, at a Santander ATM, in Spain on a Santander debit card (123 Lite Current Account). That was over £7 for 100 euros! I hadn’t realised this markup hike as the last time in Spain there was no markup. 

DullGreyGuy

Did you select for the Spanish ATM to do Dynamic Conversion? If you did then thats your problem, its always a shocking exchange rate 

skind56

Damn it, I must have. I didn’t understand what was being asked, because it previously was - pay in euros or pounds? The devious swines have managed another way to fool you into getting it wrong. I’m assuming then, the other option was possibly ’Currency Conversion’ that I should have chosen.

DullGreyGuy

skind56 said:

Damn it, I must have. I didn’t understand what was being asked, because it previously was - pay in euros or pounds? The devious swines have managed another way to fool you into getting it wrong. I’m assuming then, the other option was possibly ’Currency Conversion’ that I should have chosen.

ATMs and POS card machines can offer dynamic conversion where they charge you in GBP when you are outside the UK with the idea it gives you certainty of how much you will be paying however they make sure the shop/bank doesn't lose out in the conversion and so give terrible rates.

When in almost any country you should decline dynamic conversion and pay/withdraw in local currency. Possible exception is certain countries with pegged currencies and hyper inflation where you're better off taking/using USD etc. 

eDicky

skind56 said:

I’m assuming then, the other option was possibly ’Currency Conversion’ that I should have chosen.

An ATM will offer the choice of Conversion or Without Conversion. You need to choose Without Conversion so that your card makes the currency exchange and preventing the ATM from doing so.

NoodleDoodleMan

skind56 said:

Damn it, I must have. I didn’t understand what was being asked, because it previously was - pay in euros or pounds? The devious swines have managed another way to fool you into getting it wrong. I’m assuming then, the other option was possibly ’Currency Conversion’ that I should have chosen.

The fully branded Santander ATMs that I've used in Spain (always at a branch) are very straightforward to use and the two options are clear, there is no attempt to confuse the cardholder.

If it's a manned branch the staff will keep you right in my experience.

Update - if I've retained any memory of my most recent usage - I reckon it's the left hand command option for the desired Without Conversion outcome (regardless of the terminology presented on screen) when the choice is offered.

Happy to be contradicted if anybody has more recent experience.

Incidentally, I've now upgraded (if that's the correct expression) from Santander 1-2-3 Lite to a Santander Edge current account, it's a £1 more per month, however our Direct Debit cashback rewards are more than enough to cover this £3.

The advantage for Spain & The Canaries is that it is also fee free to use for goods and services at hotels and restaurants etc., unlike the 1-2-3 and some other Santander debit cards which don't include this benefit.

JamesNoBonds

skind56 said:

Damn it, I must have. I didn’t understand what was being asked, because it previously was - pay in euros or pounds? The devious swines have managed another way to fool you into getting it wrong. I’m assuming then, the other option was possibly ’Currency Conversion’ that I should have chosen.

I noticed this too. They ask the question in such a way as to try and confuse - and each bank seems to be different.

Then any given bank seems to change the wording on their question periodically. 

DullGreyGuy

When we were temporarily living overseas we used a range of different banks' ATM depending on the city. Each had a slightly different way to present it but generally you selected how much you wanted, say $500, and next came a screen saying they can convert that to £495 for you then in smaller text under it otherwise they'll charge you $500 and your bank may charge you fees. Accept | Decline

What it was saying, to me at least, was fairly clear. If it was good value or not requires you to know the current FX rates and what your bank charges for FX. With the later being nil for Starling it was obviously a bad deal so declined. Suspect it's a bad deal for any UK card but no idea what overseas banks charge their customers for FX as these things vary massively by country.