New Lloyds Card Terms, no charges for foreign transactions, or are there?

converse
converse Posts: 155 Forumite
Part of the Furniture
Received an updated terms from Lloyds today for my credit card, active from 30th June, including:

"we've changed the name of the 'non-sterling transaction fee' to 'non-sterling purchase fee' and we'll stop charging it when you use your card for cash transactions in a foreign currency. A cash transaction fee may still apply."

Seems to suggest no fees when these changes take place, which would be useful when traveling abroad (as they are currently charged).

In a further page "A5 section", it reads, "Non-sterling purchase fee, 2.95% of the converted sterling amount, when you make a purchased in a currency other than pounds sterling".

So there's still a fee to use this card abroad (paying for purchases, rather than withdrawing cash), is this deliberately confusing or have a misread?


Comments

  • CliveOfIndia
    CliveOfIndia Posts: 2,400 Forumite
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    edited 29 April at 3:40PM
    It is confusing.  Going purely by what you've quoted, my interpretation would be that they still charge an FX fee for standard purchases in non-sterling currency.  But if you use it to withdraw cash abroad (or make a cash-like transaction, such as gambling) then they won't charge the FX fee - but will still charge the cash advance fee.
    I may be completely wrong, but that's how I read it.
  • Barkin
    Barkin Posts: 741 Forumite
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    Yeah, I got that too, and struggled to make sense of it.

    I'll just carry on not using my card abroad.
  • Voyager2002
    Voyager2002 Posts: 16,036 Forumite
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    It is confusing.  Going purely by what you've quoted, my interpretation would be that they still charge an FX fee for standard purchases in non-sterling currency.  But if you use it to withdraw cash abroad (or make a cash-like transaction, such as gambling) then they won't charge the FX fee - but will still charge the cash advance fee.
    I may be completely wrong, but that's how I read it.

    Yes.

    I am also a Lloyds customer, and also received this letter. After reading the whole thing, I understood the same: you can pay a fee for a foreign currency purchase, or a fee for a cash-like transaction, but will no longer be charged both fees on the same transaction.
  • CliveOfIndia
    CliveOfIndia Posts: 2,400 Forumite
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    Barkin said:


    I'll just carry on not using my card abroad.
    I'm confused now, are you the OP?  Two different user-names, threw me a bit.  Apologies if you're different people !
    Anyhow, if it were me, I'd play it safe and use one of the travel cards for foreign purchases.  No point in paying fees if you don't have to, even if they don't amount to much in the grand scheme of things.

  • Barkin
    Barkin Posts: 741 Forumite
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    Barkin said:


    I'll just carry on not using my card abroad.
    I'm confused now, are you the OP? 

    Nope!

    Anyhow, if it were me, I'd play it safe and use one of the travel cards for foreign purchases.  

    Yup

    Just making the point that I also got the same notification, and also found it confusing.

     Therefore I'll carry on as before, and not use it abroad. I have other cards for that.
  • CliveOfIndia
    CliveOfIndia Posts: 2,400 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Barkin said:

    Just making the point that I also got the same notification, and also found it confusing.

     Therefore I'll carry on as before, and not use it abroad. I have other cards for that.
    Ah, I see !  Please accept my apologies :)

  • Nasqueron
    Nasqueron Posts: 10,437 Forumite
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    FWI I got the same email sent at the same time for both Halifax (Clarity card) and Lloyds (cashback card).

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • callum9999
    callum9999 Posts: 4,428 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 29 April at 9:08PM
    The email seemed pretty clear to me? They will no longer charge the FX fee on cash transactions, but if your card has a cash transaction fee (mine is 5%) that will still apply. 

    Seems like a rather pointless change though. 
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