How do you know when you're going to be charged a foreign fee?

bagand96

B0bbyEwing said:

Would PayPal say whether there was a fee or not?

And would there be a need to view this on desktop rather than mobile app or would either be fine?

Ask this as saw in her account via the app and it shows the EUR transaction, it mentions a GBP>EUR conversion rate but doesn't say anything at all about a transaction fee. 

Unless the fee is bundled in to the figure & not mentioned?

Which I'd find strange. Just as strange as being billed for using a card for a Euro payment but then not a little later, same card also for a Euro payment.

It's a bit like the high street currency exchanges who advertise "commission free".  Yes they don't charge a commission, but neither do they offer you the interbank exchange rate. They convert at their own rate in their favour, and that's how they make their money. 

PayPal explain it here https://www.paypal.com/uk/cshelp/article/where-can-i-find-paypals-currency-calculator-and-exchange-rates-help109

For a transaction today they give 1 EUR = 0.90374 GBP.   Google search says 1 EUR = 0.8651 GBP.  So PayPal are adding taking around 3.5% (3.5p in the £)

For comparison....a €100 transaction today would cost:

Interbank rate: £86.51 (although a consumer will never get this)
HSBC card: £89.14 (including 2.75% fee)*
PayPal: £90.37 (PayPal exchange rate)
Fee-Free bank card: £86.76*

*based on Mastercard rate for yesterday, as they don't publish today's rate.

bagand96

B0bbyEwing said:

Which I'd find strange. Just as strange as being billed for using a card for a Euro payment but then not a little later, same card also for a Euro payment.

Your first transaction to Disney was in Euros.  So your bank apply the non-Sterling transaction fee. 

Your second transaction was via PayPal who did their own conversion EUR-GBP and processed the transaction in GBP.  So your bank see it as a normal GBP transaction = no fee from your bank. 

To answer the original question in the thread title How do you know when you're going to be charged a foreign fee?.....

.... When the transaction is in a non-Sterling currency (at the point the bank processes it) you will be charged a non-Sterling fee. 

B0bbyEwing

Thanks. I'd have to ask her to go in to her PayPal again but I'm sure the rate was 1.something. 1.1 maybe but I'm guessing now. It wasn't 0.something.

Anyway it's a lesson learned for next time. Thanks for highlighting where we went wrong.

NoodleDoodleMan

May I suggest you use a so called "user friendly" credit card for point of sale transactions in Euros ?

This will include purchasing goods or services outwith the UK charged in € - no added fees - go with the No Conversion option when prompted to pay otherwise you'll be converted at a less favourable rate in £ as set by the foreign bank.

The Barclaycard Reward Card for example (which you have ?) or the Halifax Clarity Card, there are others - of course your Chase debit card is also good.

If you want a "user friendly" joint account debit card then Starling is the best choice, Chase don't offer these so far.

B0bbyEwing

NoodleDoodleMan said:

May I suggest you use a so called "user friendly" credit card for point of sale transactions in Euros ?

This will include purchasing goods or services outwith the UK charged in € - no added fees - go with the No Conversion option when prompted to pay otherwise you'll be converted at a less favourable rate in £ as set by the foreign bank.

The Barclaycard Reward Card for example (which you have ?) or the Halifax Clarity Card, there are others - of course your Chase debit card is also good.

If you want a "user friendly" joint account debit card then Starling is the best choice, Chase don't offer these so far.

Yeah the Barclaycard Reward card is what I used. Loaded it to Google Pay & job done. I paid for everything apart from when the OH wanted to spend more time wandering round a shop than I did so while I went outside she ended up paying on Apple Pay with her Chase.

NoodleDoodleMan

Apologies for being a dumbass - I read the problem as using an HSBC card - have I missed something ?