Halifax Clarity Card - ATM Exchange Rate

copper1066
copper1066 Posts: 7 Forumite
First Anniversary
in Credit cards
Whilst on holiday in Italy I took cash out from a bank ATM. There was no charge for doing this, but the exchange rate I got was terrible 1.08 euros/gbp. I thought that I was meant to get mastercard market rate 1.14 (at time of writing).

Have I missed something here? Does anyone have any recommendations for using a Halifax clarity card in Italy
«13

Comments

  • TadleyBaggie
    TadleyBaggie Posts: 6,048 Forumite
    First Anniversary Name Dropper First Post
    Was this the ATM offered exchange rate or the one from Halifax?
  • copper1066
    copper1066 Posts: 7 Forumite
    First Anniversary
    i think it was the ATM offered exchange rate. Is there certain ATM's I need to go to in order to get a the halifax exchange rate?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    They should all offer the conversion option. Always decline.
  • bd10
    bd10 Posts: 347 Forumite
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    You fell for the DCC scam. Never let anyone but the credit card itself (i.e. Mastercard) do the FX conversion for you.
    Do you remember the provider of the ATM? Was it Euronet? They are one of the largest providers of ATM that live off DCC.
    Have a look on the mastercard website. They list ATM. http://www.mastercard.com/interactivelocator/atm.html
    My guess (based on my experience in NL) would be, stay with official bank ATMs and stay away from independent places. Bank ATMs may well offer you conversion as well, which you should decline but at least they should not trick you as badly as Euronet's ATMs.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    I'd agree with bd10 that using bank ATMs is the safest option, I started to use a convenience store ATM in Ireland but gave up as the selections necessary to get the non-DCC rate were very unclear. It was simpler to walk down the road to a nearby bank.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    Deleted_User wrote: »
    They should all offer the conversion option. Always decline.

    Do we know that this is true? Certainly it is the case with purchases from a retailer - you should always be able to purchase without local conversion.

    But with ATMs? Most of the foreign currency ATMs in the UK do not allow billing in the foreign currency. Eg Moneycorp at Gatwick only allows you to choose with/without conversion if you are using Mastercard. Put a Visa card in and you have no choice. (Not sure about foreign Visas). I know this is a slightly different situation to using an ATM overseas.

    Personally, I have never encountered an ATM that doesn't allow billing in the local currency.
  • cloud_dog
    cloud_dog Posts: 6,043 Forumite
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    Apologies to side track the OPs thread slightly but this is relevant.

    We use a Halifax Clarity CC simply for purchases abroad but over the last couple or so years I have noticed an increase in the instances where payments go through as GBP even though you have selected local currency. This obviously means you get a worse exchange rate than you would normally receive.

    Has anyone else noticed this and also how are people trying to counteract this 'scheme'?

    As an example, and whilst not ideal, I am considering taking a larger proportion of cash this summers hols.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    Not had that experience yet. But the hassle of avoiding DCC means I do use cash more - using Clarity in an ATM and spending cash. Particularly for small transactions.
  • cloud_dog
    cloud_dog Posts: 6,043 Forumite
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    chattychappy wrote: »
    Not had that experience yet. But the hassle of avoiding DCC means I do use cash more - using Clarity in an ATM and spending cash. Particularly for small transactions.
    Excuse my ignorance but with Halifax Clarity being a CC are you not charged interest on your cash withdrawals? I've never taken cash from a CC.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    cloud_dog wrote: »
    Excuse my ignorance but with Halifax Clarity being a CC are you not charged interest on your cash withdrawals? I've never taken cash from a CC.

    Yes you are charged interest. But unlike most CCs, there are no further fees to pay on Clarity.

    Interest is calculated and charged daily, so what most people do is pay off the withdrawal within a few days. (If there's a balance from an earlier statement then you must pay this too because of the way payment allocation works.)

    Clarity interest rates vary. Mine is APR 12.9%. So if I do an ATM withdrawal of £100 and pay back a week later, the interest is about 25p. Usually I pay a day or so later so interest is pennies. You can see, even if your APR is much higher, provided you pay in a few days, the interest is tiny. On the other hand, if you use a debit card which loads the exchange rate, you could be paying 2.75% extra (£2.75 on £100). If you are caught by DCC, you could be paying as much as 9% more (£9 on £100) !
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