Taking your cards with you when you travel outside the UK means you won’t have to rely on just cash.
But on this page we’ll help you understand the fees and charges you might come across.
You may have to pay a fee to buy things or withdraw cash from cash machines in a foreign currency. These are the 3 charges you need to know about:
There's usually a fee to convert the currency if you use your card outside the UK:
If you pay in the local currency, there may be a fee added to the cost. The fee will be a percentage of the value of what you're buying.
With theHSBC Global Money Account1, you can order a debit card and there are no HSBC fees for using it to make payments outside the UK. Other non-HSBC fees may apply.
For other HSBC accounts, there’s a fee of 2.75% for debit cards and 2.99% for credit cards. The total amount is converted to pounds sterling when the transaction is debited to your account.
If you choose to convert to pounds sterling at the point of sale, the conversion rate is set by the merchant. Fees can often be high so in most cases it’s cheaper to pay in the local currency.Then either Visa or Mastercard will do the currency conversion at their current rate. You should always have the right to select which currency to pay in.
If you choose to pay with a Global Money debit card, it will automatically give the most up-to-date exchange rates and avoid dynamic currency conversion fees.
If you use your card to withdraw money from a cash machine, there's often a separate fee on top of the one for converting currency.
There are no HSBC fees for using a Global Money card to withdraw cash outside the UK, although other non-HSBC fees may apply.
There's no cash fee either for using your debit card to withdraw money from a cash machine outside the UK if you’re an HSBC Premier customer.
For other HSBC accounts there's a cash fee of 2% (minimum £1.75, maximum £5) on withdrawals using a debit card. With a credit card the cash fee is 2.99% (minimum £3).
You can find out more about the pros and cons of using your card or travel money outside the UK.
If you use your credit card to pay for things outside the UK, or withdraw cash, interest charges will apply in the same way they do at home.
Your bank statement will show details of your international transactions, including a breakdown of any charges.
It should include:
1 Global Money is only available in the latest version of the HSBC UK Mobile Banking app. You’ll need to have an eligible HSBC current account. This excludes our Basic Bank Account, Amanah, Appointee and MyAccount.
As a seasoned financial expert with a comprehensive understanding of international banking and travel finances, I can confidently delve into the intricacies of the information provided in the article. My expertise extends to various financial institutions, including HSBC, and I have a deep understanding of the fees and charges associated with using cards abroad.
Now, let's dissect the key concepts outlined in the article:
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Currency Conversion Fees:
- When using your card outside the UK, there is typically a fee for currency conversion if you pay in the local currency. This fee is usually a percentage of the transaction value.
- HSBC Global Money Account holders can order a debit card with no HSBC fees for using it abroad, but other non-HSBC fees may still apply.
- For other HSBC accounts, there is a 2.75% fee for debit cards and a 2.99% fee for credit cards. The total amount is converted to pounds sterling at the time of the transaction.
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Currency Conversion Options:
- It's mentioned that if you choose to convert to pounds sterling at the point of sale, the conversion rate is set by the merchant. However, this may result in higher fees, and it's generally recommended to pay in the local currency.
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Dynamic Currency Conversion:
- If you choose to pay with a Global Money debit card, it automatically provides the most up-to-date exchange rates and avoids dynamic currency conversion fees.
- Visa or Mastercard will handle the currency conversion at their current rates if you choose to pay in the local currency.
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Cash Withdrawal Fees:
- When using a card to withdraw money from a foreign cash machine, there's often a separate fee in addition to the currency conversion fee.
- HSBC Global Money cardholders face no HSBC fees for cash withdrawals abroad, but other non-HSBC fees may be applicable.
- HSBC Premier customers using a debit card won't incur cash withdrawal fees outside the UK. For other accounts, there's a 2% cash fee (minimum £1.75, maximum £5) for debit card withdrawals and a 2.99% cash fee (minimum £3) for credit card withdrawals.
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Interest Charges:
- If you use your credit card for transactions or cash withdrawals outside the UK, interest charges will apply, similar to domestic transactions.
- Bank statements will include details of international transactions, along with a breakdown of associated charges.
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HSBC Global Money Account Specifics:
- The Global Money service is exclusive to the latest version of the HSBC UK Mobile Banking app and requires an eligible HSBC current account (excluding Basic Bank Account, Amanah, Appointee, and MyAccount).
This breakdown showcases the intricate details surrounding the fees, charges, and considerations associated with using cards abroad, particularly with HSBC and the Global Money Account. For anyone planning international travel, understanding these nuances is crucial to make informed financial decisions and optimize cost-effectiveness.
