card payment in Local Currency

Money, investing, mutuals etc

card payment in Local Currency

Postby planteria » Sat Aug 19, 2017 4:08 am

is it best to pay in Local Currency when making a card purchase overseas?

https://www.thesun.co.uk/money/4273585/ ... almost-50/

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Re: card payment in Local Currency

Postby pabenny » Sat Aug 19, 2017 7:44 am

Yes

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Re: card payment in Local Currency

Postby macliam » Sat Aug 19, 2017 8:11 am

If spending witin Europe, better still is to get yourself a card that doesn't have a foreign currency surcharge -like Post Office MC or Saga. :thumbup:

For fee-free euro withdrawals, set yourself up an account with Metro bank and transfer the money into it before you go. ;)

I have used these for years..... Visa cashback in the UK and these once I hit "furren pairts". :wtf:
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Re: card payment in Local Currency

Postby planteria » Sat Aug 19, 2017 10:24 am

i'm sure you're right macliam.. i don't really want an additional card, but i didn't realise that it was best practice to always pay on a card (for me, currently, Amex/Barclaycard) in local currency.

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Re: card payment in Local Currency

Postby macliam » Sat Aug 19, 2017 10:31 am

planteria wrote:i'm sure you're right macliam.. i don't really want an additional card, but i didn't realise that it was best practice to always pay on a card (for me, currently, Amex/Barclaycard) in local currency.

The "translation" into sterling is almost always a bad deal - my bank in Portugal offers me a deal in sterling when I take out money - it's always considerably worse than using Metro bank's own conversion. However, it depends the loading that your card puts on foreign currency transactions..... that can be quite high and offset any saving in paying in the local currency - check it out or you could have a nasty surprise!

That's why, for me, it makes sense to hold another card (or cards).

I too try to keep the number of cards under control (I haven't used the PO MC in over a year and may cancel it soon as the Saga visa seems OK). However, I did take out a "store" visa card lately - only to get the promotional 10% discount ;) On a sofa, that paid for delivery and quite a bit more ...... but the balance is already paid off and the card is very unlikely to see the light of day again. My credit rating is strong enough to stand these occasional forays - and I've used CCs since 1980 and only ever paid interest due to a couple of slip-ups. For me, they are just deferred payment, not credit, and I'm disciplined enough only to buy what I can pay for.
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Re: card payment in Local Currency

Postby blythburgh » Sat Aug 19, 2017 10:50 am

macliam wrote:
planteria wrote:i'm sure you're right macliam.. i don't really want an additional card, but i didn't realise that it was best practice to always pay on a card (for me, currently, Amex/Barclaycard) in local currency.

The "translation" into sterling is almost always a bad deal - my bank in Portugal offers me a deal in sterling when I take out money - it's always considerably worse than using Metro bank's own conversion. However, it depends the loading that your card puts on foreign currency transactions..... that can be quite high and offset any saving in paying in the local currency - check it out or you could have a nasty surprise!

That's why, for me, it makes sense to hold another card (or cards).

I too try to keep the number of cards under control (I haven't used the PO MC in over a year and may cancel it soon as the Saga visa seems OK). However, I did take out a "store" visa card lately - only to get the promotional 10% discount ;) On a sofa, that paid for delivery and quite a bit more ...... but the balance is already paid off and the card is very unlikely to see the light of day again. My credit rating is strong enough to stand these occasional forays - and I've used CCs since 1980 and only ever paid interest due to a couple of slip-ups. For me, they are just deferred payment, not credit, and I'm disciplined enough only to buy what I can pay for.


You are sensible with your Credit Cards Macliam I worry that it is too easy to get these cards and people who are not a wise as you are building up debt. I really think the banks need to be more careful who gets these cards. We do not want to relive the horrors of the last financial crash before we have even fully recovered from it.

I can remember a friend becoming a mature student in the 1980's as he could not get a job he studied to get some "A" levels. He got a grant and opened a bank account at Barclays where a CC came with it, he did not apply for it. He got in debt and was still in debt when his wife died from cancer in 1992. Once again unemployed and hit by a breakdown following his wife's death he managed to get the bank to put his debts into another account which was interest free and paid if off very slowly.

I am sure if he had not had the credit card in the first place he would never have got into debt. And why did the Lloyds bank allow an unemployed man such a huge overdraft as they did?

It was a struggle for him to get the two bank accounts so he could afford to rid himself of the debt without having to spend almost all his repayments on interest. Most people, including me, had no idea you could even ask the banks to do this.

I fear that the banks are allowing more and more people to build up debt they cannot afford to repay in a reasonable time.
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Re: card payment in Local Currency

Postby pabenny » Sat Aug 19, 2017 11:07 am

blythburgh wrote:I fear that the banks are allowing more and more people to build up debt they cannot afford to repay in a reasonable time.


Affordability tests are much more stringent these days, at least in theory, although that still doesn't stop people living beyond their means.
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Re: card payment in Local Currency

Postby macliam » Sat Aug 19, 2017 11:42 am

Unfortunately, people have always found a way to live beyond their means - not just credit cards but payday loans, pop shops, hire purchase and other forms of the "never never".

However, here it's normally blown on "luxuries" and foreign holidays or just frittered away - but in Portugal, the average couple have already spent their wages before they arrive - not surprising when they earn a third of the wage here, yet cars and fuel (as well as gas and electricity) are more expensive than here. A 5-year old Golf with 120k km on the clock was for sale for €22,000 euros recently and I paid nearly €2k for a 1999 Seat Arosa as a runaround!

I don't know how you crack down on credit - because if money's not available officially there are always (more dangerous) ways to come by it. It's the discipline of not spending to the limit that's needed ..... and these days the media is full of adverts for the latest this and that must haves - look at mobile phones!
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Re: card payment in Local Currency

Postby planteria » Sat Aug 19, 2017 12:41 pm

macliam wrote:.. my bank in Portugal offers me a deal in sterling when I take out money ..


that's another thought. i have wondered about opening a Euro account with BNPP, CA or SG, or maybe Rabobank. i think i'd rather have a completely different account which i can use when i am, maybe 2 or 3 times/yr, in Holland/Belgium/France/Italy.
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Re: card payment in Local Currency

Postby anthonyh » Sat Aug 19, 2017 2:42 pm

Take a look at the Monzo card. It is a pre-pay Mastercard providing commission free spending and worldwide fee free ATM withdrawals (ATM may incur usage charge). Has a great app providing immediate transaction notification.

http://monza.com/
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