Credit card

[martinrmn]

After reading on the forum about credit cards I applied for a Nationwide card. Can someone tell me if the company will charge at tourist rate or the exchange rate?

 

[wickesy]

According to the terms and conditions they "will convert it into sterling at the exchange rate set by Visa on the day they process the transaction" but it doesn't say if that is based on tourist rate or exchange rate.

Judging by the rates Dad and I get it is normally comparable with most banks and exchange bureaux.

 

[gavvy]

Its Visas interbank rate which is normally better than the tourist rate and almost the same as the exchange rate. The rate used is that at the time it hits your account, not the time of the transaction.

 

[kristieuk]

Yes, just to confirm, the rate is almost the business rate which is usually about 4 cents or more better than the tourist rate - it's about the best rate you can get as a consumer, unless you're spending many thousands of $.

 

[wayneg]

I cant believe more people dont use this method instead of keep taking TC's and cash. I changed a little cash before I left last month (exchange date was end July), the best rate I could get was $1.77. I got my card statement, rate was anything from 1.88-1.91. About £100 better off than if I had taken £1500 in Cash or TC's.
Its a massive difference if the rate goes up whilst you are there. Not so good if it goes down.

 

[kristieuk]

I cant believe more people dont use this method instead of keep taking TC's and cash. I changed a little cash before I left last month (exchange date was end July), the best rate I could get was $1.77. I got my card statement, rate was anything from 1.88-1.91. About £100 better off than if I had taken £1500 in Cash or TC's.
Its a massive difference if the rate goes up whilst you are there. Not so good if it goes down.

I think that's what puts us off from relying on the card completely - when you can get rates of 1.77 - 1.86 6 months before you travel, it's very tempting, and there is no way of knowing what the rate is going to be by the time you are away. 1.91 is the best Nationwide rate we ever had, Feb 2005. If only we could predict the future!

 

[DebIreland]

This might be a dumb question. I too have noticed a good rate (euro to dollar) using my Visa but I was just wondering, when you use your Visa to withdraw cash from an ATM in the States, do you get the same rate as if you used it to buy something or pay for a meal? Hope this makes sense, thanks.

 

[kristieuk]

Most credit cards charge a 'cash advance fee' of something like 2.75%, whether you withdraw from a bank in the US or the UK (or Ireland!). Some load this as a charge you can see on your statement, but some build it in to the exchange rate you get if you are withdrawing foreign currency (so in effect, you get a much lower rate).

They are all different though and it can get confusing, so I would check with your own provider

 

[martinrmn]

When I applied for my Nationwide card I was told that if I made cash withdrawals then I would be charged if I used my credit card. If I used my debit card I would only be charged a nominal fee much like in this country when we use other ATM's.

 

[Cyrano]

We used our Nationwide credit card in France and definitely got business exchange rate which was much better than tourist rates.
Similarly debit card used on ATM's did not have any fee applied and also used business exchange rate.

 

[wayneg]

Never use your Halifax debit card while in Florida. I used mine by mistake last month for 3 icecreams. Transaction total $7.01. When I looked at my statement there was a £1.50 fee on the £3.80 transacion. Won't make that mistake again.