Foreign Currency - best deals

[WeeCountyMan]

There are a few kindred spirits here, who like me, on principle, don't like giving the banks any more of our hard earned cash than is necessary.

 

I've had the Norwich & Peterborough Gold debit card for a few years now and recently opened a Travelex SuperCard and Revolut card for comparison.

 

Recent back to back transactions from the same ATM have proven that the N&P card beats the Travelex SC on a like for like basis.

 

I withdrew 70 Euros on each in Tenerife on 24th February, one after the other - the N&P converted that to £53.36 and Travelex SC to ££54.83.

OK - a difference of £1.47 is not exactly grounds for massive celebrations, however it does confirm which is the better to use.

 

The Travelex SC does have one attraction - it can be linked to a credit card and funds withdrawn against it are recorded as a goods or services transaction, not a cash withdrawal.

 

Therefore linking it to a credit card (like the Nationwide Select or Halifax Clarity) which has no commission for goods and services purchased abroad is a unique offer as far as I know.

 

I haven't used the Revolut card since last autumn - but as it has to be preloaded from a linked debit card it really is no advantage over the N&P card.

 

There have been reports of problems abroad using the Travelex SC which is still within its trial period, however I understand many issues have been.

[WeeCountyMan]

Update.

 

Just had an email from Travelex - the pilot scheme was a success and will end in June, thereafter the Supercard will be made available to the general public for application in the summer.

 

You can register interest here, if so inclined.

 

https://www.travelex.co.uk/services/supercard

 

As mentioned above, IMO it is a better deal than prepaid cards - both in terms of exchange rates and that fact it can be linked to a credit card for subsequent settlement as a normal goods or services transaction abroad.

[thommoscotland]

Are you loading the travelex SC in Euros via your CC then so by using a "free to use overseas" CC you are basically transacting at bank rate without commission / fees as it showing as a purchase rather than a cash conversion ?

[WeeCountyMan]

Are you loading the travelex SC in Euros via your CC then so by using a "free to use overseas" CC you are basically transacting at bank rate without commission / fees as it showing as a purchase rather than a cash conversion ?

 

There is no loading involved for a linked credit card.

 

Whenever you make a cash withdrawal from an ATM your credit card is charged with the amount involved (in local currency) as if you made a goods or services purchase, and your bank's credit card exchange rate is applied the same date.

 

When you get home the transaction appears on your monthly statement for the date due settlement.

 

It took a week for my last ATM withdrawal in Tenerife to reach my credit card account - and then I have the normal 28 days to settle.

 

However, if you link it to a debit card your account will have the appropriate sum taken off the balance within 24 hours.

[kruzseeka]

We got 1.31 Euros:GBP exchange rate last week on our Halifax Clarity card which I thought was quite good compared with the high street.

[thommoscotland]

Sorry didn't understand that the card itself was a credit card. Not familiar with the concept of a linked credit card so you withdraw cash using one credit card which is linked and hence charged to another which is fee free ?

[WeeCountyMan]

Sorry didn't understand that the card itself was a credit card. Not familiar with the concept of a linked credit card so you withdraw cash using one credit card which is linked and hence charged to another which is fee free ?

 

No worries, it took me a while to get my head around the workings of it.

 

As far as I know, no other similar card allows a debit card to be linked - the new(ish) Revolut card which I also tried out does not.

 

I don't think it qualifies to be considered a credit card in the normal manner, however if linked to a regular credit card it operates as such essentially.

 

You withdraw cash at an ATM and it is charged against your linked credit or debit card account - can also be used to pay for goods and services, although I doubt that option is any better than using a credit card which has no added fees/commission for doing so.

 

There are two distinct advantages of linking it to an advantageous credit card like Halifax Clarity or Nationwide Select, one that has no fees/commission for purchasing goods or services abroad, because your foreign currency withdrawal is not treated as a cash advance.

 

Also, the Travelex Supercard exchange rate is superior to cash advance rates applied by the credit card companies - and the prepaid/pre-loaded currency cards like Caxton FM etc.

 

Even if you link it to a debit card it is a better deal than the plethora of preloaded currency cards on the market - it only charges the amount withdrawn on the day.

 

Hope I've explained clearly - if in doubt, just ask.

Edited March 10, 2016 by WeeCountyMan

[kruzseeka]

I've just had an emailing from Martin Lewis' this morning and he's talking about currency exchange. He mentions the Clarity Card and it's 'near perfect exchange rate' I always thought it beat the High Street quite significantly when I've examined my statements but it's interesting to read how he describes the rates you get.

 

I think this might be a silly question, but thought you might be able to put me straight as you are well versed in the ins and outs of these cards. So, at the expense of looking stupid, you can't use the card to buy foreign currency here in the UK can you? I think that does sound a bit off the wall as at an ATM you are only dispensed GBP and presumably you can't use a credit card at such as M&S to buy currency - or can you? We use our M&S credit card to buy our currency from them as you get a slightly better rate but if they did accept other cards they'd only do the exchange at their rate on the day wouldn't they? In that case you're worse off as the M&S card holder's rate would be preferable.

 

I'm sure I once used an ATM where I was given a choice of currency but that must have been abroad. I think I'm confusing myself!

[WeeCountyMan]

I think this might be a silly question, but thought you might be able to put me straight as you are well versed in the ins and outs of these cards. So, at the expense of looking stupid, you can't use the card to buy foreign currency here in the UK can you? I think that does sound a bit off the wall as at an ATM you are only dispensed GBP and presumably you can't use a credit card at such as M&S to buy currency - or can you? We use our M&S credit card to buy our currency from them as you get a slightly better rate but if they did accept other cards they'd only do the exchange at their rate on the day wouldn't they? In that case you're worse off as the M&S card holder's rate would be preferable.

 

Can't say I'm 100% sure on this, but I reckon there is no reason you would not be able to buy foreign currency from a UK source on the Travelex Supercard.

 

Just as if you used any other form of plastic, debit or credit card - be aware though, there is a £2.00 cash withdrawal fee (50p for normal store purchases) applied in the UK.

 

The normal scenario applies - you would be BUYING foreign currency in the UK, whereas if you take money from an ATM abroad, you are SELLING £Sterling, the latter will always get a better exchange rate.

 

It's more advantageous to get your readies abroad than it is to buy them here - I only take a small amount bought in the UK and use ATMs abroad.

 

No reason why you can't use an M&S credit card (or any other for that matter) to buy foreign currency - but that constitutes a cash advance as far as I know, so you would immediately attract the appropriate fees.

 

M&S credit card holders do get a better exchange rate from instore M&S banks if they use their card there to purchase Euros or Dollars etc. - and it is treated as a goods or services transaction, not a cash advance in this case.

 

Last time I compared, our local Debenhams offered a slightly better rate of exchange for their store card customers than the "special" deal M&S card holders were receiving - so it pays to shop around.

 

This is a useful place to get rates.

 

http://travelmoney.moneysavingexpert.com/

 

The absolutely best card to have is the N&P Gold Classic debit card, you won't get a better rate of exchange - I recommend it, and happy to explain the ins and outs. Their customer services is first class in my experience.

 

Turkey is the only country I've been to where (some) ATMs dispense currency other than the local variety - and I think that will only be in the main tourist resorts.

Edited March 16, 2016 by WeeCountyMan
Information Update

[kruzseeka]

Thanks for that WCM. Yes, now you mention it we were in Istanbul when we were offered a choice of currency. I remember because although we use our Clarity Card fairly extensively when abroad, that's been for purchases not using ATMs - so Istanbul was an exception as we'd run out of cash.

 

On the basis of what you're saying I think we'd do well in future to buy our foreign currency from ATMs once we get to our destinations - and just take a relatively small amount of cash with us rather than our usual habit of taking as much cash with us as we think we will need.

 

Thanks for your help, as ever, much appreciated. :)

[WeeCountyMan]

My pleasure Kruzseeka, you've always advised me on PoC's we'd never visited.

 

Best to take a couple of backup methods of obtaining cash.

 

I've tried the new(ish) Revolut card and it worked flawlessly - however, as it must be linked to a debit card, and has to be preloaded before a cash withdrawal, in practical terms it is no better than using an advantageous debit card on its own.

 

It has one attractive feature, once you have loaded funds (in GBP) on to it you can switch the amount in credit, at the prevailing exchange rate, between Sterling, Dollar and Euros, using the app on your mobile 'phone - iPhone or Android, although I understand it does not yet support Android tablets.

[GlenLivet]

For the last couple of years I have used International Currency Exchange (ICE), pre-loaded cards. There are no charges on overseas ATM withdrawals. I have used both the Euro and Sterling versions, and each worked perfectly whether using them to withdraw cash from an overseas ATM, or as a debit card for shop purchases (which incidentally also generates 1.5% cash back).

 

I tend to favour using the Sterling one (around 2.85% commission fee), as I can simply withdraw any remaining cash in my holiday account on my return. With the Euro one the company will 'buy back' up to a certain amount (currently around 100 Euros I think), at the same exchange rate the Euros were bought for.

 

I find them very convenient and like the peace of mind they provide. Back up cards are also provided in case they get lost or stolen. Once the initial commission fee is paid, there are no further ATM transaction fees etc., so you can relax and enjoy your holiday :D

[WeeCountyMan]

The Revolut card also allows you to transfer back any unused funds directly to your linked bank account, no fee.

 

There is only one version - you load in £GBP and you can then convert that online or via smartphone to Euros or Dollars as required.

 

A recent Which comparison lists it at the top of its Euro & Dollar "league table" - with the ICE card at the other end.

 

http://www.which.co.uk/money/credit-cards-and-loans/guides/prepaid-cards/euro-and-dollar-prepaid-cards-reviewed/

 

The ICE Sterling card gets a decent placing in the £ cards.

 

http://www.which.co.uk/money/credit-cards-and-loans/guides/prepaid-cards/sterling-prepaid-cards-reviewed/