![]() Here, you would again pay the Visa or MasterCard exchange rate plus the 2.99% foreign exchange fee (this time amounting to £26.28). Sticking with our example, suppose you next wanted to withdraw €1,000 to get you through a few more days of Parisian spending. The costs are even more profound when using your HSBC credit card to withdraw cash. This may not sound like a lot, but consider that you'll be hit with this fee every time you tap your credit card, so it all stacks up quite quickly. ![]() This fee is rather high and leaves the final cost on your bank statement at £90.70 (approximately 3.17% higher than a fair exchange). Next, HSBC will hit you with a 2.99% foreign exchange fee. This means you won't pay much for exchanging currency, and you'd be paying £87.75 (at Visa or MasterCard's rate) instead of £87.91 (at the mid-market rate) on the final statement at the time of writing. Fortunately, this occurs at the Visa or MasterCard exchange rate (which is generally within a few points of a percent of the actual mid-market exchange rate) without HSBC charging its own exchange rate on top of that. The first thing that happens behind the scenes will be the conversion of your pounds into euros. Suppose, for example, you're on holiday in Paris and decide to spend €100 on a boutique fashion item you like. Let's break them down with a typical example: Point of Sales Transactions All told, these costs can lead to an unnecessarily pricey trip abroad.
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