Using Credit Cards abroad

J

joxer77

Guest
Hi all,
I'm planning on travelling to New York in the next few weeks and would like to know if I would be better off using my AIB credit card for purchases when in the USA or buying dollars in Ireland and using them for purchases instead.

thanks
 
I'd imagine that you'd be better off using the credit card which will have a foreign exchange margin built into the currency conversion from US$ to € but which will still probably be less than what you'd pay for exchanging cash. Check the terms & conditions of your card to see what the applicable margin is though. See here for some example charges. A credit card is also more secure than carrying large amounts of cash. If you are going to make cash withdrawals it makes sense to lodge cash in advance rather than pay the hefty charges for cash advances.
 
And remember that there are limits on how much money in cash/moneyorders/bankdrafts you can bring into the US without declaring them ($10,000).

If you want to pay cash in hotels than be prepared to pay a heavy deposit (if you are lucky and the hotel takes you at all).

If you are using a good credit card you won't be charged too much for the conversion and if you are lucky by the time the charge hits your card the $ just got a little weaker and you "saved" money.

Also a credit card gives you some better protection in case something is wrong with the goods you purchased (at least mine does).

Enjoy your stay.
 
I just checked with MBNA. They recommend that under no circumstances should you preload your CC. If your account is in credit and if money is fraudulently taken from it, you will be liable for the full amount.

Murt
 
I don't think that it's reasonable to say that one should never preload a credit card. Obviously there is a risk with some or all cards that the card could be stolen and the holder remain liable for any cash balance that disappears. On the other hand one must weigh up the risks of this happening in the first place and the benefits of the lower cost of accessing foreign cash in this way. Personally the former has never outweighed the latter for trips that I have made and I am happy to use a credit card in this way to access cash while travelling to non € zone countries.
 
Well why not use your lasercard abroad (cirrus) if your bank is offering that?
 
Well why not use your lasercard abroad (cirrus) if your bank is offering that?

Because, in my case, outside the € zone the charges (3.5% subject to a minimum of €3.17 and a maximum of €11.43 and excluding any forex margin that may also be charged) are significantly higher than using my credit card which just charges the 1.75% forex margin on cash withdrawals.
 
Clubman

I disagree. I still think the risk is far too great for the limited savings you will make on commission and the interest to the CC company.

You may follow your CC everywhere on holidays and go to the machine and watch it being swiped, I know I do. However, the vast majority of people I've seen in restaurants paying for their meals, put the card on a plate which it is taken away and swiped and the receipt is brought to their table for signature. The affords the criminal the opportunity to skim the card.

Also, while on holidays, you are more likely not to be on your guard to the same extent as you would be while at home - relaxed, a bit too much alcohol, trying to keep an eye on the kids etc. The pockets in most holiday wear are more likely to be easier to pick than in the buttoned inside pocket of a jacket for example. A gang of professional pick pockets, if they decide that they want you as their next victim, are going to be very difficult to foil.

If your pocket is picked you lose all the money that you had lodged in advance and you have no comeback against the CC company. If you preloaded E2,000 and the money is taken from your account it would have taken an awful lot of FX commission and CC (extortionate) interest over a short period of time to have made this worthwhile.



Murt
 
Well, each to their own. I've always been happy to preload the card (not necessarily all in one go now that online banking from any geographic location is an option to drip feed it from a current account as required) and take my chances. Others may not be comfortable with this sort of approach.
 
credit card abroad

Just returned from US.

Preloaded card before I left.

Used the card for purchases such as meals, hotel etc.

Visa screw you on the currency conversion.

Called Visa in Dublin re. how they calculate the exchange rate. Girl hadn't a clue. Told me to contact Visa International and that exchange rates fluctuate daily. Don't think they fluctuate by 5 cent daily.

They only gave me €1.27 to the dollar.

Was expecting a conversion charge but not by this margin.

Bit steep I think.

Beware!
 
Different card issues have different FX rates - see the credit cards section in the Best Buys list for some examples - they usually range between 1.75% & 2.65%. Of course, that commission is on top of the actual rate charged - how they come up with the rate is another mystery altogether.
 
Regarding preload credit card, can you clarify something for me, I have a Visa with Ulster Bank and I rang them to know that if I had preload the credit card in advance with funds and decide to use an ATM to get cash, there will be no interest charges but their answer was that they will charge me for interest on cash advance even if my credit card is in credit. I was quite suprised. Is it the same with others banks ?
 
I always thought that if you preload your CC and use your CC on an ATM to withdraw cash that they cannot charge you interest.

This is the case with my CC - Visa with AIB.
 
Interest on ATM cash advances varies from bank to bank. BoI doesn't change anything provided you pay the balance in full at the next statement date. Others don't charge interest provided your card account is in credit. And others (Ulster Bank) charge interest no matter what you do.
 
Moneybags said:
Interest on ATM cash advances varies from bank to bank. BoI doesn't change anything provided you pay the balance in full at the next statement date. Others don't charge interest provided your card account is in credit. And others (Ulster Bank) charge interest no matter what you do.
Click to expand...
On querying a small interest charge on my NIB cc account today, NIB tell me that even though I had preloaded my card before taking out cash, it needs to be completely in credit (i.e. last bill fully paid off without usual interest fee period and any charges this month to date paid off too) to completely avoid interest charges. I haven't checked my T's & C's yet - Have others come across this?
 
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