Banks charging for non-Sterling debit card transactions?
Banks charging for non-Sterling debit card transactions?
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Discussion

bitchstewie

Original Poster:

67,732 posts

240 months

Wednesday 8th August 2018
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Just noticed on my latest statement that my bank charge 3% on any non-sterling transactions plus a 50p per transaction fee for non-sterling transactions.

It's a bit of a first world problem as it's amounted to a tenner over the course of a year.

But I have a couple of overseas trips lined up and it would be nice to not have to think too much about 3% on top of everything if I want to use my card.

Do I have any practical options other than getting a full on credit card or additional bank account?

If that's the case it's simpler just to pay the tenner or whatever smile

tomtom

4,265 posts

260 months

Wednesday 8th August 2018
quotequote all
Get a Revolut or Monzo account.

Shnozz

30,647 posts

301 months

Wednesday 8th August 2018
quotequote all
Not sure how getting a credit card will help you escape these charges - they are pretty commonplace when using a STerling account of any sort for a non-Sterling transaction.

You can look at the Santander 123 account that proclaims to have a 0% fee for foreign transactions - https://www.santander.co.uk/uk/account-changes/123...

I believe Natwest also offer this with one of their accounts (might only be the Natwest black account) - https://personal.natwest.com/personal/life-moments...

Looks like it is limited to premium accounts.

You can try something like Monzo or Starling - https://monzo.com/

Or you can load a "pre-paid" card like Caxton and then withdraw/spend with 0% then in the local currency.

One thing you have to be careful of is the exchange rate with any of the above. Its all well and good incurring no 0% charge to use a card but if the rate is appalling then its 6 of one and half a dozen of another.


bitchstewie

Original Poster:

67,732 posts

240 months

Wednesday 8th August 2018
quotequote all
Shnozz said:
Not sure how getting a credit card will help you escape these charges - they are pretty commonplace when using a STerling account of any sort for a non-Sterling transaction.
It might not that was the reason for the question smile I value my time enough not to spend ages just to save £20 over a year if that's the case.

Shnozz

30,647 posts

301 months

Wednesday 8th August 2018
quotequote all
Unless you spend half the year away or are about to drop £100k on something abroad I wouldn't be arsed then. Just get a Monzo or Revolut card as Tom says.

Jimmy Recard

17,550 posts

209 months

Wednesday 8th August 2018
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Starling Bank. No fees - you just get MasterCard's exchange rate (it's a MasterCard debit card)
You can check this on MasterCard's website as often as you want (for instance directly before making a payment you'll see what it'll cost you)

RizzoTheRat

28,932 posts

222 months

Thursday 9th August 2018
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Halifax Clarity is the usual card that gets recommended in these situations, not tried it myself though.

Revolut is free and easy to set up, and uses the interbank exchange rate, but be aware the cash withdrawal limits are a pretty low.

James_B

12,642 posts

287 months

Thursday 9th August 2018
quotequote all
I use the Halifax clarity card. I get the MasterCard I ternational rate (very close to mid) and no processing or FX charges.

I only use it for foreign travel, but it’s really good for that.

peter tdci

2,037 posts

180 months

Friday 10th August 2018
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James_B said:
I use the Halifax clarity card. I get the MasterCard I ternational rate (very close to mid) and no processing or FX charges.

I only use it for foreign travel, but it’s really good for that.
Me too. I was away for 2 months earlier this year in SE Asia and beyond and used it exclusively for payments and cash withdrawals. By paying off the full amount each month and transferring money into the account after every cash withdrawal, I got those good exchange rates and paid just 79p in interest for the cash withdrawals.

bad company

21,919 posts

296 months

Friday 10th August 2018
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I’ve been using Lloyds bank Amex and MasterCard. Decent exchange rates, no forex fees and AVIOS points but it’s no longer available to new applicants so I wonder if it’s going to be withdrawn soon.

Don’t know what I’ll replace it with. scratchchin

orangesrule

1,938 posts

178 months

Friday 10th August 2018
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I use a nationwide flex plus card for cash (£13/ month, with various insurances)

Or a nationwide select credit card for purchases.

Both 0% world wide.

eybic

9,212 posts

204 months

Friday 10th August 2018
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I've used my Revolut card for about 4 years no, you can load it up pretty much instantly using the app and it has some good security features that you can turn on/ off. The best bit for me is that I get a text whenever it's used.

gazza5

902 posts

135 months

Monday 13th August 2018
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Another one for Halifax clarity - only use it when abroad.

mikeiow

8,163 posts

160 months

Monday 13th August 2018
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I've used Monzo for some time now - great card, find for debit transactions, but they limit the free cash withdrawals now to £200pcm.
Metro is pretty good (has branches in London and a few dotted elsewhere!) - free for cash out in Europe
Starling is the latest new kid on the FinTech block - similar to Monzo but no limit to foreign withdrawals.
The finance world is awash with change....TransferWise is the cheapest way to transfer money (so they say...until someone else pops up!), &I have used that for some US to UK transactions, pretty painless...can't say I have proven beyond reasonable doubt it was cheaper than direct to Santander, but I believe it is.
A few credit card options as others have said. I think the Post Office card was pretty good at one stage.

Ultimately, https://www.moneysavingexpert.com/credit-cards/tra... is the place you want to spend some quality time to check the latest smile

Beetnik

576 posts

214 months

Monday 13th August 2018
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I use -
Credit card: Halifax Clarity
Debit card: Starling

Great rates, no fees and never had a problem.

RizzoTheRat

28,932 posts

222 months

Tuesday 14th August 2018
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mikeiow said:
ITransferWise is the cheapest way to transfer money (so they say...until someone else pops up!), &I have used that for some US to UK transactions, pretty painless...can't say I have proven beyond reasonable doubt it was cheaper than direct to Santander, but I believe it is.
I'm using Revolut to do international transfers for free, but it is limited to 5K/month