Credit Card Currency conversation

[BrianI]

We are shortly sailing on QE2 and it is our first Cunard cruise. Could any experienced UK Cunard passengers advise how the currency conversion from US dollars to UK pounds is normally carrried out.

Is it

1. Converted by Cunard to UK pounds (maybe at a not very good rate) and then charged to your card.

or

2. Charged directly to your card in US dollars and then the conversion carried out by your card company.

 

I have had experience of some foreign hotels converting to UK pounds without asking and at a not very good rate so I now ask to be charged in the local currency and let my bank do the conversion. I have also come across some cash machines which want to do the same thing unless you are very vigilant.

 

Brian

Note Title should read: Credit Card Currency Conversion - Unable to edit

[vjmatty]

I don't see how you could possibly do worse with pounds than dollars these days :o

[dak]

We always find it best to have our card charged in local currency and the conversion carried out by the bank.

 

David

[jgsmuzzy]

Your card is charged in $, and then converted by the credit card company at business rates.

[SeaMatesNYC]

Your card is charged in $, and then converted by the credit card company at business rates.

 

While the currency of the ship is in $U.S., I do recall the pursers being able to charge your bill in foreign currency, but perhaps it was only Euro. At any rate, they would likely give you a very poor exchange rate, so I would think it would be better to just allow Cunard to charge in $US and then your bank will convert at a retail rate (not what you would see in the paper, but including a margin of profit).

[paul1959]

All international charges are converted by the credit card company at a fairly good rate. You would never be able to do better. BUT They then add a 2%-3% fee for doing this. This is a fairly recent development in the banking world. It used to be that they converted for free since, as we all know, you are paying through the nose to carry their card!

[SeaMatesNYC]

All international charges are converted by the credit card company at a fairly good rate. You would never be able to do better. BUT They then add a 2%-3% fee for doing this. This is a fairly recent development in the banking world. It used to be that they converted for free since, as we all know, you are paying through the nose to carry their card!

 

Yes, and the relatively recently required (at least in for U.S. banks) disclosure of this fee is a good thing. It used to be that you could see an exchange rate that had this very same fee built into it, and seemed very poor. Now, at least under U.S. banking law, they must convert at the inter-bank rate, and then may charge, but also disclose, the fee incurred for conversion. While this does not have much practical impact on consumers, at least it is all out in the open.

[BrianI]

Thanks for the replies. I use a card from a company that does not charge a fee (Nationwide) and gives me the better commercial exchange rate rather than the tourist rate so I want to avoid the conversion being done at a poor rate. Thus I want to be charged in dollars. The difference is at least 5%. I just want to avoid the situation where Cunard would do the conversion.

Brian

[tayleur]

My Mastercard charges the extra 2%-3%, so I tend to use AmEx since they've never charged me anything. They use the official bank exchange rate at the day of transaction.

[autumn lass]

we use the same company and they converted $ at $1.959 in mid Feb, not sure what the actual rate was on that day.

[transatlantic fan]

I got an nationwide credit card just to use abroad as they give you the best rate and also dont charge any conversion fees.