Bank that doesn't charge 2.5% overseas conversion fee

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Forums › Finance and wealth management › Bank that doesn't charge 2.5% overseas conversion fee

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#666517 2-Aug-2012 20:23

Amosnz: I used to have a 28 degrees card in Australia... they definately had no intl fees\charges.

http://www.28degreescard.com.au/features.html?gemid2=May11-28deg-hp-heroMore

That's the Aussie equivalent of GEM Visa. Looking at their site, any currency conversions are actually done to US dollars and then again to Aussie dollars before being charged to your bill, so it's highly likely they used an inferior rate, and they have lots of room to hide any increased costs behind that double conversion.

rayonline

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#666553 2-Aug-2012 21:20

Is it that much a concern .. $1,000 is $25. I would be more concerned with the ATM charges.

I just swap the cash here in the bank which is 1% I think. I go for 7-10 days generally due to work.
If I was shopping online, it is much cheaper than a bank draft or a wire transfer and the import tax if the amount is over.

nzkiwiman

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#666715 3-Aug-2012 09:04

Because I use Paypal for 90% of my international transactions, I find it easier to just use their rate and let them put through a charge in NZ to the credit card. Slightly lower rate that advertised via my banks exchange rate, but the extra money spent with a lower exchange rate works out to be better than saving a few $ by using the banks exchange rate + international fee

alvin

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#666721 3-Aug-2012 09:22

what about loaded for travel from kiwibank? I haven't used this though and thinking of getting one

richms

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#666732 3-Aug-2012 09:41

alvin: what about loaded for travel from kiwibank?

Dont like it at all, you have to lock the rate in when you choose which currency you are loading up, huge topup fee (not $1 like the standard loaded card) and your cash is sitting there at risk to card fraud, unprotected and not earning anything for you.l

Richard rich.ms

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#666743 3-Aug-2012 09:59

Reading threads like this and research I've done in the past I have pretty much come to the conclusion that for retail transactions (e.g. buying foreign cash, online shopping) doing a conversion using a site like www.xe.com and adding about 5% to cover the financial insititutions profits costs works out reasonably accurate.

Sometimes I use big words I don't always fully understand in an effort to make myself sound more photosynthesis.

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rayonline

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#666747 3-Aug-2012 10:08

If you wanna go with the wallet approach with currency speculation, I think the AirNZ card might be better for you b/c you may not need funds converted instantly. You pick the date when the rate is beneficial before you purchase and you lock the rate. As with speculation you get to gain or lose. As you do with floating normal CCs. If the rate changes against your favour then you lose out ...

bazzer

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#666904 3-Aug-2012 12:38

richms: Gem visa are somewhat misleading with their claims of interest free IME. I am about to put a complaint thru to them about it, but if they dont do anything I cant really do much since they are not a bank.

It's off topic, but I'm curious to know what you mean by this?

richms

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#666913 3-Aug-2012 12:43

bazzer:
richms: Gem visa are somewhat misleading with their claims of interest free IME. I am about to put a complaint thru to them about it, but if they don't do anything I cant really do much since they are not a bank.

It's off topic, but I'm curious to know what you mean by this?

getting a promo deal of 2800 interest free for six months should mean you can maintian a 2800 ballance over 6 months by making and spending the minimum payments over that time. However they treat the new purchases as new purchases and then charge interest on them. Was told different by salesdroid about how they worked.

Customer service from them is atrocious and they don't email your bill like I was told they would, they email to tell you that it is available to log in and view so its a constant hassle to log in and save the bill so I have a record of previous ones in case they decide to go and change them or make them unavailable online. They claim that this is for security, but really its just a pain.

Richard rich.ms

bazzer

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#666923 3-Aug-2012 12:55

richms:
bazzer:
richms: Gem visa are somewhat misleading with their claims of interest free IME. I am about to put a complaint thru to them about it, but if they don't do anything I cant really do much since they are not a bank.

It's off topic, but I'm curious to know what you mean by this?

getting a promo deal of 2800 interest free for six months should mean you can maintian a 2800 ballance over 6 months by making and spending the minimum payments over that time. However they treat the new purchases as new purchases and then charge interest on them. Was told different by salesdroid about how they worked.

Customer service from them is atrocious and they don't email your bill like I was told they would, they email to tell you that it is available to log in and view so its a constant hassle to log in and save the bill so I have a record of previous ones in case they decide to go and change them or make them unavailable online. They claim that this is for security, but really its just a pain.

Sounds like you're expecting 6 months deferred payments?

richms

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#666930 3-Aug-2012 13:02

bazzer:
Sounds like you're expecting 6 months deferred payments?

No, as I am making the minimum payment on the account and then spending it. If a $2800 interest free purchase doesnt get me no interest on a ballance of $2800 for 6 months then the advertising was false IMO.

Richard rich.ms

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bazzer

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#666956 3-Aug-2012 13:24

richms:
bazzer:
Sounds like you're expecting 6 months deferred payments?

No, as I am making the minimum payment on the account and then spending it. If a $2800 interest free purchase doesnt get me no interest on a ballance of $2800 for 6 months then the advertising was false IMO.

I guess what they'll say (and how I read it) is that you're not getting charged interest on the $2800. You are however making mandatory minimum payments against the principal. If you choose to subsequently make additional purchases (borrowings) then you'd potentially be up for interest and/or additional payments required for them.

hobsonlea

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#666970 3-Aug-2012 13:43

I use ozforex.com.au between Australia and NZ.
when I first looked at it - seemed to be cheaper than banks - continued to use it - but havent redone the calcs on benefits.

richms

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#666998 3-Aug-2012 14:18

bazzer:

I guess what they'll say (and how I read it) is that you're not getting charged interest on the $2800. You are however making mandatory minimum payments against the principal. If you choose to subsequently make additional purchases (borrowings) then you'd potentially be up for interest and/or additional payments required for them.

Thats what I figured, so as I am paying and spending about $100 each month I would have expected the "finance charges" to be the same each time, not going up each month.

Only benifit in the gem visa is that the money I internet bank over to it clears the next day, vs 2-3 days that all my other cards have taken to get the available money on them.

Richard rich.ms

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#667080 3-Aug-2012 16:36

richms:
bazzer:
Sounds like you're expecting 6 months deferred payments?

No, as I am making the minimum payment on the account and then spending it. If a $2800 interest free purchase doesnt get me no interest on a ballance of $2800 for 6 months then the advertising was false IMO.

They probably buried it somewhere in the terms. I know when I got a BNZ Visa there was some info on interest free balance transfers which was pretty clear about the way interest free is only on the original purchases (and how repayments go on the lowest interest bearing - i.e. free - balance first). Sounds a bit like the same situation but they didn't make it clear to you. I wouldn't call it false advertising, but I would call it unclear advertising and I'd certainly expect them to fix it.

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