Using cash machines
Looking for a bit of information on 'hole in the wall' machines and credit cards abroad.
I've only ever used a debit card to withdraw cash and only in the UK. But I'm thinking about using a credit card to withdraw cash abroad.
My question is, would I be charged interest from the day of the withdrawal or is there any grace on this? I would intend to pay off the account by transfer from another on-line bank account, as soon as the amount appears on the credit card on-line account (when I know the exact amount, after conversion from the local currency to sterling).
Secondly, can I assume that I would get the full 'official' exchange rate when withdrawing the cash?
I would probably be using a Halifax Clarity credit card to withdraw the cash, which I understand incurrs no fees for this sort of foreign transaction.
Has anyone done this?
Comments
-
I can't really help Ian as I have only used a 'hole in the wall' once in this country and never abroad. Instead I have gone into a local HSBC bank and withdrawn at the counter. I would have thought it best to ask your card provider but I would have expected some charge to be levied.
0 -
I have used my Clarity card for a couple of years now to withdraw cash for overseas ATM's. In fact I no longer bother to buy euros before a trip any longer as it's usually better value to withdraw once you are there. You get the full interbank rate with the Clarity Card (other brands are available) and there is no commission. I have done as you suggest and transferred money once I can see it on the statement. You still pay a very small amount of interest, usually less than 10p. Even if you leave it to statement date the amount of interest on withdrawing 300 euros is often less than £1.
David
0 -
As others I've used the Halifax clarity aboard and pay it off the next day (or within the next few days ) with on line banking. You are correct there is no fee for taking your money out just interest on the amount. The interest was usually pennies.
Not sure where you're going Ian but in Spain last year the advice from the Thompson reps for days trips to the big cities was to use the cash machines inside the banks for added security.
0 -
Not really a useful reply, but I've made many dozens of extended trips abroad in European countries and only ever take about 50 Euros in cash plus a handful of coins left over from the last trip. I always get cash as I need it from ATMs using my Nationwide or Lloyds debit cards (I don't have any credit cards), usually 100 Euros at a time for 'walking about money'. My banks make a small charge for the transaction but it's insignificant to me.
Some ATMs ask whether you want the transaction advised to your bank in Sterling or Euros and I always go for Euros since my own banks' exchange rate is always better.
I have found that some 24/7 petrol pumps won't accept my debit cards but only credit cards.
As an aside, when I went to New York City late 70's (before ATMs were widely available) to work for two years a colleague advised me to make sure I always had some cash with me ...'for the muggers' since they'd give me a hard time if I offered them a cheque.
0 -
DK, according to the consumer progs the H/fax clarity card is about one of the best there is.
0 -
We each have a Caxton card which we use to withdraw cash from while abroad, no charges to do so and good interest rates. We also have a Nationwide FlexPlus Debit card which we can use to withdraw cash also doesn't incur charges. We carry CC's to pay for fuel, campsites and any big purchases, tolls are covered by a Tag. We tend not to carry much cash though we always have some. Germany was the only place we have had any problem with them not liking CC's or the Caxton, however that was a number of years ago I believe it is a bit better now.
0 -
We use Clarity too.
Mainly we have not bothered to pay off cash withdrawals as it can get complicated if you are using it for purchases too.
If you make a payment to the card, that will first be used to repay anything that is already "statemented", so if you have an outstanding statement then you would need to pay that off as well before your cash withdrawal would be repaid.
If you have no outstanding statement then a repayment would pay off cash withdrawals first, even if you also had purchases on the card.
We had the Clarity as our main card and got the £5 Reward for spending £300 per month, but that is gone now, so we are mainly using alternative cards here and will use the Clarity abroad.
As we have a card each (2 different accounts) we plan to use one for spending and one for cash, so it will be easy to repay cash withdrawals if we wish.
0 -
Thanks all.......yet more really useful advice from the forum!
We've had a stock of euros for a while (we've added to it whenever the exchange rate seemed reasonable) but they got a bit depleted in France last year, mainly when a couple of sites wanted cash payment.
So this seems like a good way to get extra euros if required while on holiday.
Corners - next foreign trip is Madeira, so no problems with security at banks......safe as houses there.
0 -
Have good time, I think the advice using the cash machines inside a bank was that if you use a cash machine outside people could see you getting a lot of money out and/or having some sort of way of collecting/seeing your pin and card details, then being have your card stolen somehow, Could happen anywhere there are lots of tourists who being on holiday have more money than usual and perhaps don't take as much care as they should?
0 -
Whatever you use/do, don't accept a machine/retailers suggestion that you convert the local currency to £ immediately. Accept the charge in the local currency and, usually, you will be better off when it comes to the exchange rates used for the conversion.
I found this out by using ATMs in Portugal, as against a store purchase in euros.
0 -
Does anyone know if the Post Office credit card lets you draw cash wihout fees, same a tge Halifax Clarity?
I know that they don't charge a fee for foreign purchases, but I've never withdrawn cash abroad with it.
I know that I need to check their t&c's but wondered whether you wise folks know the answer?
0 -
The trouble with Caxton type cards is tgat you get a poorer exchange rate when loading the card......a bit like buying currency at a travel agent or bank.
That's why I want to draw cash using a credit card - you get the full 'official' exchange rate and (if you use tge right card) don't pay a fee.
I now know that this is the case with a Halifax Clarity card........just wondered about a Post Office card. I know that the PO don't charge a fee when making purchases. Not sure about cash withdrawals though.
0 -
That is true it does if you use a credit card but as explained further up the thread there are ways of keeping it to a minimum. Even leaving it to the statement date does not usually incur very much in the way of interest but then it does depend how much you withdraw, if its thousands of euros it will add up!!! Another problem is that not everyone has a debit card that allows commission free/interbank rate and I imagine it's less of a hassle to apply for a credit card than open a new bank account just to get such a debit card?
David
0
