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



## marshmallow (11 Nov 2008)

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....


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## ubiquitous (11 Nov 2008)

afaik it has been there for years.


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## TarfHead (11 Nov 2008)

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....


 
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 ?


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## marshmallow (11 Nov 2008)

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.


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## mathepac (11 Nov 2008)

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?


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## marshmallow (11 Nov 2008)

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.


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## ClubMan (11 Nov 2008)

The www.itsyourmoney.ie _CC _cost survey summarises the forex conversion margins on most _CCs_. 1.75% is the minimum. 2.75% is at the higher end of the scale.


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## soy (14 Nov 2008)

It was always there, but before it was built into the rate. Recently they call it out specifically.


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