Withdrawing Cash on Your Credit Card Abroad

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  • linjan
    linjan Posts: 3 Newbie
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    I recently used clarity card abroad and all the ATMs were charging a 'Mark up' varied between 2 and 3.2% . Has anyone else experienced this
  • Biggles
    Biggles Posts: 8,209 Forumite
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    linjan wrote: »
    I recently used clarity card abroad and all the ATMs were charging a 'Mark up' varied between 2 and 3.2% . Has anyone else experienced this
    No, where was that?
  • dzug1
    dzug1 Posts: 13,535 Forumite
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    Where's 'abroad'?

    Free ATMs are not universal - in many parts of the world they charge.
  • A_T
    A_T Posts: 959 Forumite
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    linjan wrote: »
    I recently used clarity card abroad and all the ATMs were charging a 'Mark up' varied between 2 and 3.2% . Has anyone else experienced this

    Depending on the country and the bank many ATMs will levy their own charge. Halifax will not charge you though for a cash advance from an ATM with a Clarity card - although interest will be charged, of course.
  • grumbler
    grumbler Posts: 58,629 Forumite
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    edited 26 March 2016 at 9:52PM
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    linjan wrote: »
    I recently used clarity card abroad and all the ATMs were charging a 'Mark up' varied between 2 and 3.2% . Has anyone else experienced this
    What's "mark up"?

    Some ATMs do charge a fee for withdrawals, even in UK, but usually it's possible to find one that doesn't charge. What country?

    Some ATMs try to trick you into Dynamic Currency Conversion - paying in £ instead of the local currency. Usually there is an option to pay in the local currency, not in £.

    15 cheapest ways to get travel money - MSE:
    When paying on a card abroad, you're often asked if you want the transaction to be in pounds or the local currency.

    As a general rule, never pay in pounds – that means the overseas store/bank is doing the conversion, and rates are awful. For a full explanation of how this 'dynamic' currency conversion works, see Martin's 'Using plastic overseas? Always pay in euros?' blog.
    Another blog: Spanish cash machine gave me more info than I'd bargained for ...
  • knightstyle
    knightstyle Posts: 6,990 Forumite
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    Just to add a bit about paying for cash withdrawals.
    I ring my bank and arrange for a payment to my Clarity card to arrive several days after we arrive at our destination. That allows time for our cash withdrawals and means we do not have to contact the bank whilst away.
  • zagfles
    zagfles Posts: 20,323 Forumite
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    linjan wrote: »
    I recently used clarity card abroad and all the ATMs were charging a 'Mark up' varied between 2 and 3.2% . Has anyone else experienced this
    This sounds like DCC not an ATM charge. ATM charges are usually flat rate. Did it also quote an amount in GBP? If so it's DCC and is optional! You can refuse it and you'll be charged in the local currency.

    ATM charges generally only apply to a handful of countries eg US, SE Asia, never known a European one to charge (not a proper bank one anyway - I'm sure like here there are some in shops etc that charge).
  • joan1945
    joan1945 Posts: 1 Newbie
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    I use a Nationwide Flexplus debit card to withdraw from ATM,s abroad - no transaction fee worldwide and a good rate of exchange.
  • idegroote
    idegroote Posts: 2 Newbie
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    I know this thread is a few months old but hoping to get some clarity :)


    I just had a chat with the Halifax Clarity Credit Card team who advised me that although there are no charges to withdraw cash there is interest to pay. I appear to have paid a lot of interest this year because I travel with work in areas where you just need cash. I thought cash withdrawals were interest free but clearly not.


    So, they tell me that if I can pay the amount into the account within 2 hours after withdrawing I don't pay interest. Does this mean that I can prepay an amount into the account ready to be withdrawn and by doing so avoid cash withdrawal interest charges? I asked the advisor on the phone but she could not advise me of this she said. She didn't say yes or no either. Anyone tried this?
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    idegroote wrote: »
    So, they tell me that if I can pay the amount into the account within 2 hours after withdrawing I don't pay interest. Does this mean that I can prepay an amount into the account ready to be withdrawn and by doing so avoid cash withdrawal interest charges? I asked the advisor on the phone but she could not advise me of this she said. She didn't say yes or no either. Anyone tried this?

    This question comes up frequently. The answer is you shouldn't do this. It is a breach of T+Cs to put your account into credit. You risk having the account blocked. That said, people report having done it without a hitch. Personally I don't take the risk for the sake of pence.

    Interest is calculated daily. So it is minimal if you pay off within a few days. If your rate is 16.9%APR, say, then you are talking about less than 5p/day per £100 withdrawn.

    I make regular cash withdrawals. I don't use DDs. When travelling I just check the balance roughly weekly and send a payment to clear the balance (including purchases).

    REMEMBER - if you send a payment just after making an ATM withdrawal, it will be applied to outstanding transactions on a previous statement before your cash withdrawal.
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