Credit Cards - Again

[Norma]

Tried search and failed!

Can someone please clarify the situation with Euros and Santander card? Would prefer debit card than credit card. I assume the exchange rate is not as good as taking cash. I see they advertise no charge for using abroad. But is it expensive? Do you pay for the convienence?

[GypsyTom]

As far as I'm aware, as I looked into this myself as I bank with Santander, this card is a debit card and there is no commission charge for drawing cash from foreign ATMs.

However, the card is only available to those who have a special current account which is linked to a Santander mortgage, so if you haven't a mortgage with them, you can't get one.

The Nationwide B.S. seems to be the favourite for those looking for a debit card that allows commission-free cash withdrawals.

[lennyhb]

Nationwide is the most popular both Debit & Credit cards have no charges & commercial rate of exchange.

Example of their rates, last week I was working in Lithuania my colleague drew out cash at Gatwick exchange rate 3.144/£ plus £10 commision, on his credit card exchange rate 3.67/£ I used Nationwide card in ATM 3.97/£.

 

 

 

 

[PJay]

Always use Nationwide debit card, as you get commercial rate and no charges in the Euro zone, and usually pay for fuel on the card, as this is where the most cost is for us.

pauline

[handyman]

PJay - 2010-02-25 11:44 PM

 

and usually pay for fuel on the card,

 

We now always pay for fuel in cash. Its the number one way of getting your details skimmed, espesially in France. (it was France that was in reports last year, as having a huge problem with skimming at fuel stops)

[Alan D]

Yes same here as handyman, we now pay in cash at fuel stops in France. Main road garages were the only places our card was used yet when we returned home one month later 27 fraudulent debits appeared on our statement. Lucky for us we still had a balance, as we met many folk who were away for months on end and would be unaware until there was no credit left. We have now reduced the large amount of credit available to us granted initialy by the company and take other cards as back up.

[Klyne]

Alan D - 2010-02-26 9:20 AM

 

Yes same here as handyman, we now pay in cash at fuel stops in France. Main road garages were the only places our card was used yet when we returned home one month later 27 fraudulent debits appeared on our statement. Lucky for us we still had a balance, as we met many folk who were away for months on end and would be unaware until there was no credit left. We have now reduced the large amount of credit available to us granted initialy by the company and take other cards as back up.

 

Surely this makes the case for regular checking online, whilst you are away, to see what is happening to your account. Perhaps I am an online banking junky but I would be very unhappy not checking both bank accounts and credits on lin at least every couple of days. Also anyone who has 27 fraudulent hits on their account should think about changing the card supplier. I have had a couple of incidences with my Tesco credit card and they have disabled the account immeditely as inconvenient as that is at least they were on the ball!

 

David

[lennyhb]

I suppose it's better safe than sorry, Tesco's have stopped my card 3 times in the last year. If their computers recognise what they see as an unfamilar series of transactions they stop the card.

Situations like a web transaction, followed by a UK shop transaction then a foreign transaction within a few hours triggers it, or transactions a few hundred miles apart within 24 hours that usally just requires autherisation next time you use the card.

I've now made sure they have my mobile number as the main contact number.

 

I also had a fraudulent US transaction of $29 on my card recently, when they sent details of the transaction it had my date of birth as 01/01/2009 so their computers aren't that good.

 

 

[naittaw]

You migh want to consider using a pre-loaded debit card. Cash Passport is the Thoms Cook Version and I see that Camping & Caravaning Club are about to introduce one. Load it with euros before you go and use it for cash withdrawls or in store as any other card without charge.

[lennyhb]

You would be paying up front then, and I doubt you will get as good as exchange rate as Nationwide wide. Also how easy is it to convert any credit back to UK cash?

 

 

[Brian Kirby]

Alan D - 2010-02-26 9:20 AM Yes same here as handyman, we now pay in cash at fuel stops in France. Main road garages were the only places our card was used yet when we returned home one month later 27 fraudulent debits appeared on our statement. Lucky for us we still had a balance, as we met many folk who were away for months on end and would be unaware until there was no credit left. We have now reduced the large amount of credit available to us granted initialy by the company and take other cards as back up.

Best place to buy fuel in France is supermarkets.  Autoroute/roadside filling stations are invariably more expensive, and I suspect the supermarket filling station staff are more reliably honest.

[Bazza454]

lennyhb - 2010-02-26 10:53 AM I've now made sure they have my mobile number as the main contact number. 

That's the best advice.

I recently purchased over £3k of flight tickets online at BA on my Tesco card and within 2 hours they phoned to confirm that the transaction was genuine, they then suggested that I gave them my mobile number so that they could contact me if necessary while we are travelling around.

[Alan D]

Yes Klyne, sounds like you are an on=line bank junkie as I am now. Last year however we were new to the Machine and did not possess the knowledge to work the thing abroad.The card supplier NationWide are normally very good and returned all our cash, although the debit to the Lap dancing club in England , (I kid you not) took some explaining. Good thing we were both together in France at the time though.

Alan.

[W3526602]

Hi,

 

Do a Google for BARCLEYS + EURO. Get a euro cheque book from a UK bank.

 

But probably not worth it unless you spend a lot of time in Europe.

 

602

[Uncle Bulgaria]

An alternative is something like the Euro card I have from Caxton-fx - there are others. It is a Mastercard credit card, but you load it with Euros and then use the card as a normal credit card. It can be loaded by SMS text message or over the internet. The balance can be checked at any time again by SMS text message or internet. Conversion rates on loading are main bank rates not tourist rates, and you pay no transaction costs when you use it or when you withdraw cash from an ATM. I've had mine for 2 years and it has worked very well. If it was ever cloned, the maximum anybody could get would be the balance, which I keep low and load up with additional cash every couple of days depending on anticipated spend over the next few days. You also have the normal protection of the credit card for fraudulent use, provided you have kept the PIN secure. Loading is almost instantaneous. I carry a conventional Visa credit card as a back up, but have never had to use it. Best if you are a frequent or extensive European traveller.

 

Richard.

[Brian Kirby]

Alan D - 2010-02-26 2:32 PM Yes Klyne, sounds like you are an on=line bank junkie as I am now. Last year however we were new to the Machine and did not possess the knowledge to work the thing abroad.The card supplier NationWide are normally very good and returned all our cash, although the debit to the Lap dancing club in England , (I kid you not) took some explaining. Good thing we were both together in France at the time though. Alan.

That is odd, if the card was skimmed in France, because you'd surely have to visit that club to incur the charge?  Did any of the other fraudulent charges originate from UK?  I ask because I have recently been told card details are often stored for some time before being used, to make the source of the fraud more difficult to trace.  Your card could have been skimmed weeks, or months earlier, and I have seen some suggestion of cards being skimmed even before delivery.

[Alan D]

Brian, the only time my card was out of sight was at the well known Elf station just off the motorway just a mile or so from Calais. Their MO is that you leave the card at the desk, fill up and then pay. The card itself was first used for a bus ticket from Dover to Manchester, so maybe the rascal crossed the Channel or as you say the details could have been passed on. Then a series of debits, lots of small ones , many for low cost Top ups for PAYG mobiles. These rascals, dont forget, are astute at this game and it did not arouse suspicion at NationWide. To be honest I would have been more inconvenienced if they had stopped the card while we were in France and away from the Internet. We did use it at Supermarkets also for fuel ( by saying main road garages I meant to infer it was not used down a dodgey backstreet) One item was purchased with a delivery address but N/W would not confirm if they would follow this up . Alan

[Tony Jones]

What do you all think about this "contactless technology" Barclays are advertising now?

Would anyone actually WANT traders to be able to scan the card without it even coming out of the wallet or purse??

[Alan D]

Tony, obviously the card companies want us be able to spend our money more easily, but as you say what about security?

The fact is despite Chip and Pin, my scammer did not need to know my details, all that was required was my card number and this was accepted by phone or the internet.

Very little is mentioned of how much the card companies are loosing which says volumes of how much profit is being made. My company made very little fuss and told me not to worry as it was a very common problem and my cash would be returned. I got the distinct impression at the end that the signal was being given out to the scammers, that provided the amount was not too high the cost would be absorbed.

Alan.

[boxer1]

Are there any charges with the Nationwide CREDIT card, when you use it for fuel, taking out cash at atm etc.

 

Boxer 1

[GypsyTom]

boxer1 - 2010-02-27 2:37 PMAre there any charges with the Nationwide CREDIT card, when you use it for fuel, taking out cash at atm etc.Boxer 1

I can tell you without even looking it up on Nationwide's website that the following will apply:

Purchases such as petrol or anything else will not incur a commission charge and it will be like using any normal credit card abroad.

Cash withdrawals from any ATM, either here or abroad will incur a minimum cash transaction fee of at least £2 or £3.

I know this only because Nationwide's credit card will be run by one of the big two, Visa or Mastercard and they both impose these kind of charges on cash withdrawals.

If drawing cash stick to the debit card!

[GypsyTom]

Alan D - 2010-02-26 8:23 PMTony, obviously the card companies want us be able to spend our money more easily, but as you say what about security?The fact is despite Chip and Pin, my scammer did not need to know my details, all that was required was my card number and this was accepted by phone or the internet.Very little is mentioned of how much the card companies are loosing which says volumes of how much profit is being made. My company made very little fuss and told me not to worry as it was a very common problem and my cash would be returned. I got the distinct impression at the end that the signal was being given out to the scammers, that provided the amount was not too high the cost would be absorbed. Alan.

What possible logic is there for deducing that because you don't see how much credit card companies lose through fraud, they must be making huge profits?

A large trader will pay just one percent commission to his credit card provider. So, if his provider is Barclaycard, they take one percent. Barclaycard then pays a proportion of this to either Visa or Mastercard.

So on a sale of £300, Barclaycard will make £3.00. It will then give a portion of that to Visa or MC. As well as having to run its business on this paltry margin, it is jointly responsible with the retailer as regards consumer law and if the retailer folds for instance, the customer can then claim on the credit card supplier.

Making huge profits? I don't think so! It's a very high volume business on the slenderest of margins and this is why the credit card companies are constantly striving to cut fraud, which takes a big slice of their profits.

As for not disclosing their losses, you must be reading the wrong newspapers as they are regularly reported.

[Brian Kirby]

All of which tends to gloss over the interest rates the card companies currently charge on card debt.  Come on Tom, what is base rate currently, what do the card companies charge on average, and how many card holders pay off the whole of their outstanding debt each month?

I don't object to optimists with positive attitudes and rose tinted specs, but pleading for pity for card companies (whose lending practises have long been the wrong side of responsible) is a bit rich!!  What is to pity?  They provide a service, they calculate the risks, and the charges (and our stupid profligacy) generate the returns.  Since we (at least those of us who carry card debt) pay for the fraud through the interest rate, provided they get the risk calculation right, their level of profitability is more or less guaranteed.

They certainly shouldn't be pilloried for our silliness, but pitied?  Really!  Methinks you do too much protest!  :-D

[747]

Just to clarify the mention made of contactless cards, my new debit card from Barclays is of this type.

 

The purpose is to make it suitable for small purchases, ie less than £5. The card is swiped over a new type of card machine by the owner.

 

I have had the new card for 3 months but have yet to find the new card machine, so I have never swiped it.

[GypsyTom]

Brian Kirby - 2010-02-27 5:12 PM

All of which tends to gloss over the interest rates the card companies currently charge on card debt.  Come on Tom, what is base rate currently, what do the card companies charge on average, and how many card holders pay off the whole of their outstanding debt each month?

I don't object to optimists with positive attitudes and rose tinted specs, but pleading for pity for card companies (whose lending practises have long been the wrong side of responsible) is a bit rich!!  What is to pity?  They provide a service, they calculate the risks, and the charges (and our stupid profligacy) generate the returns.  Since we (at least those of us who carry card debt) pay for the fraud through the interest rate, provided they get the risk calculation right, their level of profitability is more or less guaranteed.

They certainly shouldn't be pilloried for our silliness, but pitied?  Really!  Methinks you do too much protest!  :-D

Who said that I pitied them? I think though that they give me a terrific service. I get up to seven weeks' free credit and the convenience of not having to carry a wad of cash. But I do have the sense to pay off my bill in full each month so their lending practices don't affect me I glad to say!

A big thank you all those who pay interest so I can get this great free service!