Author Topic: Credit and Debit Card Fees In Turkey and Other Countries  (Read 2216 times)

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Offline usedbustickets

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Credit and Debit Card Fees In Turkey and Other Countries
« on: February 22, 2014, 12:33:03 PM »
We have noticed since the new year when making payments by UK credit or debit card or using ATMs in Turkey, and other countries, that where as before we would not be charged, other than perhaps the appropriate FX rate, that we are now, and these come under the Statement Heading of 'Non Sterling Transaction Fees', and they can be very high.

This is apparently as a result of greater transparency in how UK banks charge us for services, like foreign cash withdrawals or card payments.  The result is that the banks - bless 'em - have now made it an opportunity to make more money, and also start to charge where they didn't before.

You will have probably had a letter from your bank about these charges, if you haven't then can I suggest that you check with them how foreign transactions will be applied to your card or account, in order to avoid any nasty surprises when you come over to Turkey, or travel elsewhere.

When we got a Non Sterling Transaction charge of £29 for paying a hotel bill we were unable to change it, but we have now changed our credit card supplier (Nationwide have a new CC out with no non sterling transaction fees) to stop it happening again.  We now only take Sterling from the HSBC ATM and change it to local currency in resort.  I know that is not possible for everyone, as we do not all have HSBC accounts.  But whatever your bank can I suggest that you check, and think about how you might avoid or minimise these charges.

Offline Menthol

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Re: Credit and Debit Card Fees In Turkey and Other Countries
« Reply #1 on: February 22, 2014, 15:05:31 PM »
We haven't had a letter about this from our bank (Natwest) but did see the charges on our account.

As we were severely stung by exchange rate 'costs' when we recently paid for our house in Ovacik, we have been scrutinising our bank's policies.

We have contested the charges applied when withdrawing monies in Turkey, as we were not informed this was going to happen and haven't agreed to it. But so far, we are directed to the smallest of small prints in our account T&Cs which basically translate as 'the bank has the right to introduce any charge it wants and there's f**k all you can do about it'. But then again look at the whole PPI scandal .....

Offline mac2010

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Re: Credit and Debit Card Fees In Turkey and Other Countries
« Reply #2 on: February 24, 2014, 09:57:24 AM »
If you are living here in Turkey may I suggest getting a Turkish credit card. I have had one for 7 years from Finans bank and it has much better rates compared  to UK ones and also it has many more offers with it. Free use of the VIP lounge at all Turkish airports, low charges,text messages to confirm transactions , no fee for exchange when used outside turkey, can also pay electric bill, water, digiturk, car tax, and so on.Simply far better than any UK ones I have ever had.

Offline Colwyn

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Re: Credit and Debit Card Fees In Turkey and Other Countries
« Reply #3 on: February 24, 2014, 10:53:40 AM »
UBT, I guess it works like this.

BEFORE, you used to withdraw 350TL when the exchange rate was 3.5 to the £. So it should have cost you £100. However, when you got your bank statement it actually cost you £103 because the bank had clipped you 3% on your exchange rate.  Most likely you didn't notice this since you couldn't remember the precise rate on the day you used the ATM and it wouldn't be a nice easy calculation such as my example. You might think your bank didn't charge you; but it did.

AFTER, your bank has to tell you it has charged you £3, people can see it and probably don't like it. But they are not actually being charged any more for ATM use. Of course banks might put it up but now it will be visible to customers and not hiding in exchange rate manipulation.


I am guessing here. Can you confirm it? I don't know because I use a Norwich & Peterborough debit card and only pay the Visa rate charged to banks (approx. 25p per £100).

Offline usedbustickets

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Re: Credit and Debit Card Fees In Turkey and Other Countries
« Reply #4 on: February 24, 2014, 11:22:33 AM »
Colwyn you are being far too generous in your explanation of what the bankers have done.

You are right in your 'Before' explanation, however, in the real 'After' situation they are charging a marginally more attractive FX rate, but not that attractive compared, say, to what a bank or change would give you here for cash.  Then they are putting the Non Sterling Charges on top, and some of these are as high as 2.75% of the sterling amount transacted.  Which is why I was charged by the MBNA credit card £29 for paying an approx £1100 foreign hotel bill, and as I say the FX rate was not that attractive either.

If the credit card was not bad enough, then the bank (HSBC) decided that they would charge a Non Sterling Fee for making a TL withdrawal at their Turkish ATM, which they have never done before.  We can get around this by withdrawing sterling from the ATM and changing it to TL at the bank or change, but not everyone can.  And that is the point I was trying to make, all of the UK banks and card providers are doing it.  People need to check what their own bank/card providers are doing, otherwise they could be in for a financial shock after they return from holiday in Turkey, or any other country, and see their bank CC statements.

In short the bankers are charging you more for doing what you used to do either for free or at less of an overall charge.

Mac couldn't agree more on the Turkish CC for people living in Turkey.  Unfortunately, many people do not live here and they may not be able to get one, or the limited holiday opportunity does not make it worthwhile having one.

Offline littlereddevil

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Re: Credit and Debit Card Fees In Turkey and Other Countries
« Reply #5 on: February 24, 2014, 13:14:11 PM »
Martin's money site says the Halifax Clarity card is best for spending abroad

Offline Colwyn

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Re: Credit and Debit Card Fees In Turkey and Other Countries
« Reply #6 on: February 24, 2014, 14:16:22 PM »
Being too generous to bankers? Tut! Tut! Must do better. But it wasn't an "explanation", as I said it was a "guess", since I don't experience this - like you I have Nationwide credit card (to go with my N&P debit card).


For those who want to check what they are paying for money versus what they might be paying I find the Visa site useful. You can compare your bank statement for any particular day against base Visa rates for that day (just put in the currencies and date of settlement - on your statement - and fill in 0% in the conversion fee box. [There is another site for Mastercard if you use that].


http://www.visaeurope.com/en/cardholders/exchange_rates.aspx




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