If I use credit card to purchase overseas, how does the card provider charge fee? ?

Question

Hi. I am going to use my credit card to purchase overseas, such as paying hotel, shopping and paying dinners in retaurants. Acutually I am not so clear about all potential fees charged by the card providers, such as commission fee per transaction, currecy exchanging commission fee and so on. Also, I am wondering which conversion rate the provider bases on to exchange money, their own rate or a rate shared by all banks? Thanks.

Answer 1

It varies from one provider to another.  Typically they charge a fee of between 2% and 5% as well as using a "tourist" exchange rate.

If you use a card issued by Nationwide, there is no fee and you get a commercial exchange rate.

Answer 2

Most charge approx 2.5% the value of the transaction.

Nationwide charge nothing. Check out the webiste of your card provider for details and then compare.

Answer 3

Credit card companies charge a foreign usage loading which typically is 2.75% of the value of each transaction. The only exceptions are Nationwide BS, The Post Office and Abbey on their Zero Credit Card.

The exchange rate charged will vary each day and from bank to bank. It will also vary depending on which country you are in and their currency.

Other than this your credit card will be subject to the same charges as would of been applied in the UK. Therefore if you don't pay the balance off in full when you get back you will be charge the APR of your card on purchases you make.