2.75% 'currency conversion fee' on AIB Visa - new?

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marshmallow

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Just got my AIB cc statement and I noticed something that I hadn't come across before; an extra 2.75% on all non-Euro transactions which is described after each item as a 'currency conversion fee'. I know CC companies generally build in an extra few percent when converting wholesale FX rates but this extra 2.75% is on top of this.

Is this a new charge Visa are applying and if so, can they just change the terms and conditions on FX transactions at will?

Makes using a credit card abroad v expensive now....
 
marshmallow said:
Just got my AIB cc statement and I noticed something that I hadn't come across before; an extra 2.75% on all non-Euro transactions which is described after each item as a 'currency conversion fee'. I know CC companies generally build in an extra few percent when converting wholesale FX rates but this extra 2.75% is on top of this.

Is this a new charge Visa are applying and if so, can they just change the terms and conditions on FX transactions at will?

Makes using a credit card abroad v expensive now....
Click to expand...

BoI Mastercard & Visa have been applying a 'handling fee' on GBP transactions since the Euro changeover.

Also, the practice to 'build in an extra few percent when converting wholesale FX rates' is a retail margin, and not unique to CC companies.

Have you previous statements showing GBP, or non-EUR, transactions without this charge ?
 
No, this 2.75% extra is definitely new - to my statements anyway. Just had a look back through an old one I got after a trip to the US in the summer and no currency conversion fee mentioned, just the dollar conversion rate on the day.

I noticed it because the dollar rate charged in this new statement was brutal - 1.21 and the extra 2.75% fee on top makes it even worse :(

Must check my MBNA statement to see if they do it, if they don't, it's bye bye AIB.
 
My VISA (not AIB) seems to have a margin of about 1.75% embedded in the exchange rate of non-Euro transactions and I've never seen a separate line item on the statement such as you describe.

I have in the past received small credits for "exchange rate adjustments", but not recently. :(

Just a thought - were the transactions for cash withdrawals from non-Euro ATMs as I think these are treated differently to merchant transactions?
 
I suspect it's some kind of additional revenue raiser which is fair enough, but I would have thought they'd have to give advance notice of such a change to the terms and conditions of an existing credit agreement? Have had a card with them for 15 years or more but no more if I can find an alternative.
 
It was always there, but before it was built into the rate. Recently they call it out specifically.
 
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