Banks and card companies will drop some currency fees

[pollensa]

Banks and credit card companies have agreed to scrap some charges they levy on holidaymakers buying foreign currency. See BBC News - Banks and card companies will drop some currency fees but basically:

- banks such as Lloyds, Barclays, RBS, Santander and the Co-op currently impose charges of between 1.5 and 2% if customers use their debit cards before leaving the UK to buy foreign currency. This will now be dropped. Saves me having to get cash out before getting my currency!

- banks & Credit Card companies will have to detail on statements what charges are made when converting foreign transactions

- and exchanges places offering 0% commission will have to reveal what charges they are really hiding in their exchange rate

So good news all round!

 

[Smiddy]

Good news! but they're only reacting to the competition from other outlets who have taken a lot of business fro them. Can't remember the last time i used a bank for these transactions. Banks dropping charges out of the kindness of their heart? Don't think so!

 

[pollensa]

I think they mean if you use a Debit Card at any of the Travel Exchange places - I often use M & S - but there is a charge if I use my Barclays Debit Card so I withdraw cash first to avoid it. That's what I thought they meant.

 

[lollipop]

Pollensa I must admit that was how I read it too.

 

[Nick]

This would only be good news if the banks did not claw back any money lost from this.

Who really is gullible enough to believe the banks won't lose out? They will simply adjust the rates they give downwards.

Banks don't give a monkey's about customers, they're all about maximum profit and greed.

 

[Deanscroft]

As far as I can find out these banks are only dropping the charges added to a debit card when buying foreign currency while in the UK. Doesn´t affect the charges added for using the card outside of the UK.

 

[pollensa]

As far as I can find out these banks are only dropping the charges added to a debit card when buying foreign currency while in the UK. Doesn´t affect the charges added for using the card outside of the UK.

I don't think it will change charges outside the UK but they should be shown clearly on your statement.

 

[Rangers1]

This would only be good news if the banks did not claw back any money lost from this.

Who really is gullible enough to believe the banks won't lose out? They will simply adjust the rates they give downwards.

Banks don't give a monkey's about customers, they're all about maximum profit and greed.

Yawn!!! Without banks countries would not be able to fuction. Regarding the downwards rates then maybe a tweek here and there and i suppose when the card charges for flights are gone then you wont be expecting the airlines to put up prices?

Airlines don't give a monkey's about customers, they're all about maximum profit and greed so its not just banks!

 

[Nick]

Oh dear..........you've obviously misunderstood me. True, airlines rip us off as well but the subject was regarding banks and banking.

The whole matter is that banks are greedy. Anyone who lends money is about maximum profit at any cost.

Now I'll go and have that sleep......

 

[zaccolbert]

Well as of a couple of years ago my bank did start charging for withdrawals abroad, Natwest used to be the only bank that didn't charge fees for this which is why i was with them in the first place. Like you say banks have to make money so the introduction of charges wasn't surprising. And there are ways of avoiding them, i got one of those prepaid currency cards specifically to use when on holiday or travelling. They're accepted in most places that you'd use your debit card, hotels, restaurants and bars, so now i can still avoid the withdrawal charges without having to commit to a credit card.

 

[El Gordo]

Hola Zac

Yes there are lots of discussions on this site about which cards are best.

It very much depends on who you bank with and what conversion rate you get.

I used Nationwide for a number of years while their Debit card allowed overseas withdrawals without charge.

When this changed, I switched to Santander as their account allows free withdrawals in Santander ATM's but only in Spain. Their Zero Credit Card allows overseas use at no cost as well.

I was using an Electron card for buying flights with easyjet with no booking fee or loading, but this has now stopped and incurs a £9 booking fee. Jet2 currently accept Electron free, so I will consider the extra cost with Easyjet when comparing prices.

Keep us briefed about any changes you come across.

 

[zaccolbert]

Hi El Gordo,

I'll have a look into Santander, if i remember correctly their charge is about 4%, but I'm in Spain quite a lot as have family out there, so it sounds like they'd be a really good option.

Thanks for your help and yes I'll keep you posted on the developments

Cheers

 

[cumberland8]

The problem with all these cards is that there are always hidden charges, plus on top of that you will always get the worst exchange rate on the market.
Which carried out an in depth investigation a while back to find that people were paying as much as £27 in every hundred for using certain cards, the astonishing thing is 90% had no idea.
I think it is very much a case of we are going on hols what does it matter`! I just want to get on that plane.
Also to change your money at the airport will incur at least a further 10% on top.

 

[El Gordo]

As far as I can remember, the Santander debit card does not have a fee or loading for use in Santander ATM's in Spain so you get the "interbank" rate at the time of the transaction. Also their "Zero" credit card has no fee or "loading". May be for existing customers only?

The Halifax "Clarity" card also has no fee or loading.

Checkout MoneysavingExpert.com for up to date details. (although they do not mention the Santander Debit card possibly due to its limited use)

 

[El Gordo]

Sorry to inform you that Santander Zero is not accepting new applications so checkout the alternatives at MoneysavingExpert.

 

[tangofan]

The problem with all these cards is that there are always hidden charges, plus on top of that you will always get the worst exchange rate on the market.
Which carried out an in depth investigation a while back to find that people were paying as much as £27 in every hundred for using certain cards, the astonishing thing is 90% had no idea.
I think it is very much a case of we are going on hols what does it matter`! I just want to get on that plane.
Also to change your money at the airport will incur at least a further 10% on top.

Were you referring to prepaid currency cards Cumberland8?
I don't think all the prepaid currency cards have hidden charges or bad exchange rates. I have a lot of experience of the Caxton card and the rate is very good, and there is no charge at ATMs. Of course the bank itself may charge but you can usually find one that doesn't. Some currency cards charge for ATM withdrawals and charge for obtaining the card but Caxton doesn't. You pay £10 but that is put on your card as part of your balance. You can get Euro, Dollar or Global cards and it is best to get separate ones if you want Euros or Dollars as if you get the Global card thinking it will cover every currency, it will but will charge a conversion rate. Still better than banks though!

The only concern I have with these cards is that they are not covered under the relevant authority should the company collapse, which means you would have no claim on the balance on the card.

 

[El Gordo]

.......I don't think all the prepaid currency cards have hidden charges or bad exchange rates. .......

There is a useful comparison of prepaid cards at Moneysavingexpert

FairFX comes out top with Caxton closely following.

 

[whaleywanderer]

As far as I can remember, the Santander debit card does not have a fee or loading for use in Santander ATM's in Spain so you get the "interbank" rate at the time of the transaction.

I can confirm this, I use a Santander debit card in Santander ATM's and do not incur any charges and you also get the interbank rate, which is the best rate you can get.

Santander do not seem to promote this but if you check out the small print on their current accounts you will find it.