Exchange rates on card

[jimscott]

It probably wont happen on P and O because it is Sterling. However can anyone help me with this one please?

 

The last time we did our pre-boarding paperwork on the dockside with Celebrity we had to tick one of two boxes for exchange rate (this has never happened before). To be honest we were both shattered after a long journey but I believe the question was do you want to use the ships exchange rate or the banks

 

I hope the above is correct. No doubt someone will tell me. But which is the best to choose or what is the difference? If the above is correct I guess the ships one is the rate on the date at the end of the cruise and the banks is as a time of ticking (not sure) I allotted for the ship rate and didn't have any big surprises at the end.

 

Jim Scott

[dwhe]

People will tell you to always use the Bank rate and not the Ships. But as you found out there is not a lot in it.

 

Last time I sailed with Celebrity (May 14) they even guaranteed an equal rate.

[john watson]

Last time this query happened to me prior to boarding the staff said "Don't let the cruise line decide, your bank will give a better rate". Was not Celebrity however when you are dealing with P&O everything is in British Pounds Sterling; (unlike Cunard where you buy a cruise in Sterling and the On Board Account is in Dollars), so this question is irrelevant as no exchanges of different currencies take place.

 

Regards John

[clivep]

What is relevant here is the "loading" that your credit card provider applies to foreign transactions to give them commission on the transaction. The actual exchange rate used is pretty much a standard figure but this is then adjusted by the loading to give the exchange rate shown on your credit card statement.

 

In the UK the loading tends to be 2.75% but can be higher or much lower... my Nationwide credit card has a loading of 0%.

 

I believe Celebrity offer to do the conversion at 3% in which case they adjust the standard exchange rate by this percentage and put the charge on your card in £.

 

So most UK passengers would be better off opting out of the ship's conversion scheme. I certainly would although ticking and highlighting this fact has not always worked and my choice has been ignored. In one case with Celebrity I got compensation from Celebrity UK after I had lost out due to them not following my opt out wishes.

 

It all depends on what loading your particular card has for foreign transactions (you'll find it in the small print),

 

Whichever way you choose, the basic exchange rate before loading will be that prevailing when the card is processed at the end of the cruise.

[richleeds]

It happens now in many stores in the States, Macy's, Abercrombie, Apple, Dillards etc, when you swipe your card it will ask if you want to pay say $50 or £35 for your purchase and you must select a box to continue, I presume if you tick the £ price then the exchange is loaded in favour of the store, who will convert at their rate.

[clivep]

... and also some restaurants and even cash machines in Italy and Spain!

 

The default is always to "opt in" against your best interests and it's easy to miss this extra step when authorising the transaction.

Edited January 30, 2015 by clivep

[Zombatar]

I always opt for the bank exchange rate when spending in foreign currency BUT I use a credit card that does not charge me for overseas transactions (I use SAGA and I also believe that some of the Nationwide account do not charge.) :)

[Brayman]

I always opt for the bank exchange rate when spending in foreign currency BUT I use a credit card that does not charge me for overseas transactions (I use SAGA and I also believe that some of the Nationwide account do not charge.) :)

 

. . . . . and the Halifax Clarity card.

[richleeds]

. . . . . and the Halifax Clarity card.

 

 

Yeah another vote for Clarity

 

 

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[Zombatar]

But do check that clarity interest rate, mine is only 11% on SAGA (but you gotta be old!!!!) :D

[richleeds]

But do check that clarity interest rate, mine is only 11% on SAGA (but you gotta be old!!!!) :D

 

I only ever use it for overseas purchases and it is set up to clear the balance in full every month so I never get any charges.

 

But yes, if you are likely to leave a balance on there - check the rate.

[Brayman]

I only ever use it for overseas purchases and it is set up to clear the balance in full every month so I never get any charges.

 

But yes, if you are likely to leave a balance on there - check the rate.

 

Absolutely, clear your balance each month and it costs you nothing, even for currency transactions.