Euro (€) Currency Thread

LancsMacca

If you take more than 10000 euros in cash you need to declare it with customs before you fly out of the country. Not sure if 10000 is the limit on what you can take over in one go or not.

Cash-Is-King

I have to transfer approx €1500 of Euros via SWIFT transfer.

My question is this; do I do it through Nationwide or Bank of Ireland....

N/Wide charge £20 and I am unsure of BoI's rates.

My query is this - is there a website which compares all UK Bank and Building Societies current Forex rates as I will obviously go with whom has the best overall rate for SWIFT transfer and exchange rate (a cent or 2 per € x 1500 will add up!)

foofi22

I am going to Europe in a couple of weeks - would I be best exchanging money here before I go...or withdrawing money abroad using my nationwide flexaccount? Do I get a better exchange rate one way or another? Many thanks!

hammy_the_hammer

foofi22 wrote: »

I am going to Europe in a couple of weeks - would I be best exchanging money here before I go...or withdrawing money abroad using my nationwide flexaccount? Do I get a better exchange rate one way or another? Many thanks!

draw it out abroad with your nationwide card....beware of dynamic currency conversion ....if it asks you whether you want the transaction in euros or GBP always select euros

foofi22

Thanks hammy. Could you explain dynamic currency conversion?

I am aware that the exchange rate will fluctuate during my time away (either for or against me!) - if I exchanged money on the high street and (theoretically) withdrew from a cash machine abroad at the same time - the exchange rate from the cash machine would be better? Is there any chance I get charged by the cash machine itself? Sorry to sound stupid but why should I select euros for the transaction? Thanks again.

benjus

foofi22 wrote: »

Thanks hammy. Could you explain dynamic currency conversion?

Sorry to sound stupid but why should I select euros for the transaction? Thanks again.

Dynamic Currency Conversion is where you make a transaction abroad (either a purchase or a cash withdrawal) and you are charged in Pounds Sterling rather than the local currency. The reason it is generally a bad thing is that the exchange rate is typically worse than the Visa rate which you would get if you used local currency. The vendor is obliged to allow you to opt out of dynamic currency conversion, although some do not obey this rule.

I am aware that the exchange rate will fluctuate during my time away (either for or against me!) - if I exchanged money on the high street and (theoretically) withdrew from a cash machine abroad at the same time - the exchange rate from the cash machine would be better?

If you have a card like the Nationwide Flexaccount, withdrawing cash abroad will ALWAYS give you the best possible rate. With other cards the rates will generally be better than the tourist rates on the high street, but not by much. If the card has a par-transaction fee it usually works out cheaper to make infrequent, large withdrawals.

Is there any chance I get charged by the cash machine itself

Depends to some extent on the country. In Europe ATMs at bank branches generally don't charge but you may find "convenience" ATMs that do charge, much like in the UK. In the USA many banks do charge - there have been many threads on this subject.

harryhound

Unfortunately this "dynamic currency conversion" racket can make it 3% cheaper to get cash out of the ATM and then pay in cash, rather than pay with your card in (say) a shop and discover you have been ripped off when you arrive home.
I have a little card from Nationwide that says "I want to pay in local currency" in three languages.

hammy_the_hammer

the other posters have answered the questions better than i could...the bank/merchant sets their own rate of conversion when doing DCC

baz.thornton

woohoo wrote: »

Hi,

I am almost scared to ask for fear of being dim but here goes.

I have the Abbey zero card - Martin says:

The overall winner is the Abbey Zero card, which has no foreign exchange loading anywhere in the world, plus charges no fee for withdrawing cash from an ATM. The only slight downer is that the interest rate when you use an ATM is the highest out of all my picks, at 25.9% APR; yet the lack of a one off charge balances this out, especially if you use the hole-in-the-wall a lot.

European Load Fee: 0%. Worldwide Load Fee: 0%. ATM Fee: £0. Interest for withdrawing cash: 25.9%.


My question is, basically is it cheaper to use the card in Majorca or to change the nmoney into Euros at say Travelex - order online and collect at airport? I would repay the card as soon as I got the statement. I have a 0% balance transfer on there - would it affect that - by paying off the lowest rate balance first (ie not the money I withdrew when away?)

Many thanks. I don't understand the 25.9% thing.

Now i am very confused.
It says on the leaflet zero fees for cash withdrawals from an ATM but

Cash advances: Introductory/Promotional rate N/A. Monthly rate 1.9137%. Annual rate 25.9%

Is a withdrawal from an ATM not a cash advance ?

benjus

baz.thornton wrote: »

Now i am very confused.
It says on the leaflet zero fees for cash withdrawals from an ATM but

Cash advances: Introductory/Promotional rate N/A. Monthly rate 1.9137%. Annual rate 25.9%

Is a withdrawal from an ATM not a cash advance ?

Yes, an ATM withdrawal is a cash advance. You are confusing the cash advance fee with the cash advance interest charge.

Most credit cards charge a fee for each cash advance (typically 2.5% of the amount withdrawn), and THEN immediately start charging interest at the cash advance rate (which is normally higher than the purchase rate - in this case 25.9%). With most cards there is no interest free period, so even if you pay the card off in full each month you will still be charged interest.

The Abbey Zero card does not charge a cash advance fee, but does start charging interest immediately. It might be possible to avoid this by putting a credit balance on the card but I don't know if Abbey allow this. Otherwise the best you can do is transfer money onto the card every time you make a transaction to keep the balance at zero. For withdrawing cash abroad it's not as good as having a Nationwide debit card.