2.75% 'currency conversion fee' on AIB Visa - new?

M

marshmallow

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Just got my AIB cc statement and I noticed something that I hadn't come across before; an extra 2.75% on all non-Euro transactions which is described after each item as a 'currency conversion fee'. I know CC companies generally build in an extra few percent when converting wholesale FX rates but this extra 2.75% is on top of this.

Is this a new charge Visa are applying and if so, can they just change the terms and conditions on FX transactions at will?

Makes using a credit card abroad v expensive now....
 

BoI Mastercard & Visa have been applying a 'handling fee' on GBP transactions since the Euro changeover.

Also, the practice to 'build in an extra few percent when converting wholesale FX rates' is a retail margin, and not unique to CC companies.

Have you previous statements showing GBP, or non-EUR, transactions without this charge ?
 
No, this 2.75% extra is definitely new - to my statements anyway. Just had a look back through an old one I got after a trip to the US in the summer and no currency conversion fee mentioned, just the dollar conversion rate on the day.

I noticed it because the dollar rate charged in this new statement was brutal - 1.21 and the extra 2.75% fee on top makes it even worse

Must check my MBNA statement to see if they do it, if they don't, it's bye bye AIB.
 
My VISA (not AIB) seems to have a margin of about 1.75% embedded in the exchange rate of non-Euro transactions and I've never seen a separate line item on the statement such as you describe.

I have in the past received small credits for "exchange rate adjustments", but not recently.

Just a thought - were the transactions for cash withdrawals from non-Euro ATMs as I think these are treated differently to merchant transactions?
 
I suspect it's some kind of additional revenue raiser which is fair enough, but I would have thought they'd have to give advance notice of such a change to the terms and conditions of an existing credit agreement? Have had a card with them for 15 years or more but no more if I can find an alternative.
 
It was always there, but before it was built into the rate. Recently they call it out specifically.
 
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