Credit Card Fees

If you are using a card issued by a bank outside of the EEA you could still be asked legally to pay a surcharge not exceeding the processing cost. Whether you would be in practice might be a different matter.

This only applies to the practice of surcharging for using a credit card instead of cash. Does not refer to other fees charged by the card issuer for using the card in Europe. The practice in the US is to give a discount for cash instead of card. You pay the same - either way. Prices will just be a pound or two higher to cover the processing fee. Why do people thing that financial transactions should be free?

It is safest to call your credit card company directly and ask them. I know our Citibank Master Card doesn't charge any transaction fees. Even with no transaction fees on our end here in the U.S., the particular overseas store, hotel, restaurant might still charge you a fee.

The law is in the UK and impacts purchases made with credit cards issued by UK based banks. If you are not a citizen of the UK or are not using UK issued credit cards this has zero impact on you.

This basically covered surcharges, which are fees charged to customers by merchants when a credit card is used and is supposed to offset the fees the merchants pay to credit card issuing banks.

If you are from the US you will still be stuck with whatever fees your credit card has as those are charged by your bank for the use of the card. So go out and get a card that has no international transaction fees if you don't want to pay those fees.

This new law doesn't apply to tourists whose credit cards were issued from a non-UK bank. As for the 2-3% fee you are paying on your credit card, you do have a choice. Go online (use google) and do some research. Pick a credit card that charges no annual fees and no foreign transaction fees.

Capitial One doesn't charge foreign currency fees and reimburses for foreign transaction fees from ATMs. I use a Capital One Visa card as backup and use my Capital One Debit Card in ATMs for daily transactions. My wife has similar cards as a security backup. And we carry a separate Visa card as a security for that. Me, I prefer to pay in cash. You may enjoy swiping or waving your card everywhere and walking on by, but the reality is that each time you use your card it's another small window for a security breach. And, I 'd rather not have the government and big business track all my data and movements. If you think that doesn't happen-ever get coupons in the mail for food products you bought using your grocery frequent shopper card? I also cut out a very thin piece of aluminum flashing to fold over my credit cards. No need for a bulky high security wallet. but, you should be aware that using a contactless card also means someone can read the card through your clothing as you walk down the street .

And, whatever you do, avoid the offers for Dynamic Currency Conversion-that will cost you big time.

Thank you all for the feedback. The main points seem to be 1) The new UK law does not apply to non citizens 2) Check with each business to see if they add surcharges for the use of a credit card vs. cash, as in the US 3) Check with the issuing bank regarding foreign transaction fees..... Maybe getting some traveler's checks could be useful as a back-up, as in the olden days..... Thanks again and I really appreciated the tip about covering cards with aluminum flashing.

No! Not traveler's checks! You'll have a very hard time finding someone who will take them. Use your regular US ATM card in European ATMs to obtain local currency. Your bank may or may not charge you a fee for doing so, but this is a better idea than traveler's checks, believe me.

Yes please forget travellers' cheques. Amex are these days only exchangeable in Nat West, plus some Post Offices and Tesco branches. That is if they can remember to how to do it.

Regarding contactless cards, the only information a passer-by theoretically could pick up is the long card number and the expiry date, ie the same as could be copied from the front of the card.

Ya, the use of AL foil falls into the urban legend class. Same for the passport. Maybe you should line your hat with AL foil. Nobody is reading credit cards through you clothing. You will find more restrictions on the use of credit cards in Europe such as a higher min for using especially with small merchants. We use more cash in Europe than in the US simply because it is more convenient.

As pointed out, traveler's checks usage died many years ago. Absolutely worthless as a back up. US currency is almost as bad since you have to find a location to exchange the dollars. Merchants generally will not accept dollars. My back up is euro. I take two hundred euro and just bury in my money belt or somewhere else and not touched except in an emergency. It becomes the two hundred I take home for the next trip and it is my starter cash on the next trip.

Euro as the backup for the UK which is all about British Pounds?

Try setting up a credit union account. Mine doesn't charge fees for debit usage here or abroad. Something to consider and PLEASE forget Traveler Checks. Those are worthless.

Frank, I use sheet aluminum, not foil. And, there are dozens of articles about how easily RFID cards can be read through your clothing. Here's just one link: http://www.dailymail.co.uk/news/article-3849368/Could-fall-prey-contactless-conman-thieves-money-card-walking-street.html. But, you can believe as you will. I am certain no credit card company or bank ever mislead a customer. (see the last paragraph).

Thank you all again for the information. We don't have contactless credit cards. We have cards with chips that we place in the chip reader which all the stores have in the U.S. Once in a while, we have to swipe with the strip. Are we going to run into difficulty using our chip enabled credit cards in England due to the widespread use of contactless credit cards? Or, am I misunderstanding the discussion?
The last time I was in Europe, Switzerland to be exact, was in 2007. We used our credit cards everywhere without any problems. Never really needed cash. However, we will bring some pounds with us and see how it goes.
Thanks again everyone!!

The most important payment method to eliminate from your cards fraudwise is the mag-stripe. Some issuers will turn it off altogether at source so if anyone skims your details and tried used a cloned mag-stripe card it just won't work. A few won't have a mag-stripe on the card in the first place. Otherwise demagnetise the stripe yourself which at least eliminates the lifting of your details from it. Unless you need to use it in some place where they still use mag-stripes ....

OP: first, don't demagnetize your credit card if you live in the US, since as you know (and I know) there are still some places where you have to swipe.

You will not have any major issues using a chipped, non-contactless credit card in the UK, with the possible exception of un-manned machines (think railway station ticket machines or gas pumps).

At any terminal with a person (which is the majority of terminals if you think about it) a signature slip will be printed out -- almost always on paper; I don't think I ever saw one of those electronic signing terminals you see in the US, because UK credit cards are essentially all chip and PIN (if not contactless) so no one is signing anything. At any touristy shop, vendors are used to Americans with our signature cards, but at random small shops that don't see many Americans it's handy to have a pen on you, because in those cases vendors aren't used to signature slips.

(Quite frankly PIN, let alone contactless, is the way to go IMO but as in many other ways US banking is technologically well behind that of other developed countries.)

The only situation in which you might run into trouble is those aforementioned unmanned machines. I can't speak personally, because my credit card (the JetBlue Barclaycard) defaults to signature, but will go to a PIN option for unmanned terminals, so that's what happened to me. In your situation, those machines will either not ask you for a PIN, accept a PIN of 0000, accept any random PIN at all, or not let you complete the transaction. If you're concerned, just go early and find a person to help you if the machine doesn't work.

Emma, I will concede that the likelihood of your card identity through your clothing is relatively minor. But, who needs that extra joy when you are on vacation when such a small act of prevention could help? If you don't care for the Daily Mail, how about National Public Radio? https://www.npr.org/sections/alltechconsidered/2017/07/04/535518514/there-are-plenty-of-rfid-blocking-products-but-do-you-need-them

More to my point, I try to limit my use of credit cards. Not only the fees, but the tracking and loss of privacy concern me. The average person around me seems oblivious and feels their use is completely anonymous-yet I often receive ads on my web browser for something I just purchased by credit card at a store. Sure, Alexa/Suri can remotely turn on my crockpot, adjust the heat in my house before I return home and order me more toilet paper from Amazon before I run out. But, at what price? I am just not that big a fan of big business and Big Brother knowing my every mood. Oh, but the hell with it. Have a great trip.

OP: first, don't demagnetize your credit card if you live in the US, since as you know (and I know) there are still some places where you have to swipe.

As for how I cope in this situation if absolutely necessary I can turn on mag-stripe authentication from my issuer's app. And turn it off again immediately afterwards.

The real point of annoyance with contactless is if you lose one you need to keep a good eye on your statement for a long time for spurious charges, although in the UK at least you aren't liable.

As to usage there are half a billion contactless transactions each month in the UK, although this will include such things as Apple/Android/Samsung pay etc as well as cards.

Emma, I won't disagree and,yes, I read the NPR article. We're getting pretty far afield, so I'll just say everyone should do what they feel comfortable with. The latest National Geographic has a pretty good article on Big Brother and, curiously, starts out in jolly old London.
And that's only what they are willing to tell you about. Signing off. Take care.

Thanks again everyone. All of your thoughtful responses are most appreciated. A chipped credit card, with or without aluminum flashing, it is! Also, a back-up debit/credit card , check mark. Some cash in pounds, check mark. And, negative on traveler's checks and currency conversion convenience. Got it!