If you’re interested in finding out more about non-sterling transaction fees, or any other aspect of your business finances, then get in touch with our financial experts at GoCardless. We would always recommend exchanging at a local bank or credit union, where possible, as they will generally offer the best rates and are less likely to charge any extra fees.
So it’s always safer to exchange currency before you travel. Exchange before you travelĮxchange rates are always wavering given the current unstable economic situation. These cards work on flat currencies and will definitely save you money if you travel a lot but might not be practical for most users. Multi-currency bank accounts do exist for individuals and businesses that make frequent purchases in different currencies. However, when you’re abroad you might actually end up paying more based on the exchange rate. This is a lot easier to do online as you can just search for a site that sells the item you’re looking for in sterling. The obvious answer is to avoid all purchases in foreign currencies.
While it might sometimes be convenient to bite the bullet and just absorb the fee, there are workarounds available in some instances. Some banks, for example, offer premium accounts that allow you to circumvent these fees. This fee will once again depend on your bank and what agreements you currently have with them. ATM withdrawalsįoreign ATM withdrawals will often also impose a separate fee of around 2% on all debit card withdrawals from foreign ATMs. Generally speaking, you’ll save money paying in the local currency but it will always depend on the merchant’s conversion rate and whether it compares favourably to your bank’s non-sterling transaction fee. It’s going to vary on a situational basis which is the right option. Whether or not you choose to pay in the foreign currency or convert the purchase to sterling will have a direct impact on the price you pay. Get started in minutes Learn more To convert or not to convert? In that situation, the transaction fee is set by the individual trader but will usually fall in line with recent exchange rates as recognised by Visa or Mastercard. There is, however, often the option to convert the transaction to sterling at the point of sale. For example, the HSBC non-sterling transaction fee is around 2.75% for debit and 2.99% for credit cards. In most instances, the fee will simply be added to the cost of your purchase and the cost will depend on your bank. In many instances, it will also apply when making online purchases. This will apply when using your card in shops, restaurants and when withdrawing money from an ATM. What is a non-sterling transaction fee?Īs the name implies, a non-sterling transaction fee is a fee applied to any purchase or financial transaction made in a currency that isn’t pound sterling. With that in mind, here’s everything you’ll need to know about the non-sterling fees you might come across when using your card in a foreign country. With a general societal move towards cashless payments, using your card or other contactless payment options abroad is going to become more common. One of the most common fees for UK travellers is the non-sterling transaction fee that is applied when using your credit card or withdrawing money from an ATM in a foreign currency. But one of the most stressful and sometimes confusing aspects of travelling abroad is always keeping one eye on your finances with the added complication of exchange rates and fees.
With COVID-19 travel restrictions now lifted for many of our favourite holiday destinations, thousands of us are taking the opportunity to book foreign holidays for next year.
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