Credit Card charge for shopping in another currency

[porkchop]

When you shop in another currency with your credit card the bank will add on a percentage charge on to your bill when changing the foreign currency to your own currency. Does anyone know how much this percentage charge is and how is it calculated.

[237SJ]

It`s called `loading` and it`s usually about 3%. I have a Santander Zero and there is no loading. There are some other cards that don`t add it as well.

[hc4361]

Which credit card? They all have different terms and conditions

[boxtops]

We use Nationwide and they have just introduced a 1% transaction charge, it's still cheaper than many other credit cards. (It used to be free with NW!).

[dzug2]

Depends on your bank. Varies from nothing up to 5% or so. Most are around the 2.75 to 3% mark.

[porkchop]

I have Mastercard. 5% would appear to be stiff considering all these calculations are done by computers. Another bank rip off.

[dzug2]

The charge isn't levied by Mastercard.

It's added by the bank that issues the card.

[madmaggot]

If you know how much you need to spend you may be better using a pre-pay currency card.

[boxtops]

I picked up a leaflet about that the other day in Thomas Cook, madmaggot - worth a second look.

[hc4361]

Some pre payment cards work out more expensive than some credit cards.
With some you have to pay to load them, which I think is ridiculous.

[twix123]

No only is there the percentage charge applied but the exchange rate the bank uses to take into account!

[Ticko]

It depends on the credit card but typically it is 1% or 2% of the transaction.So the transaction will be loaded with the rate of exchange and the percentage.So for example a euro purchase of €100 would incur the current(9th April 2011)exchange rate of 1.13€ = £1.00 and then the 1% or 2% of the €100 transaction price converted into sterling.That is £87 x2%=£88.74