The Post Office credit card is one of the few cards to offer commission-free spending abroad.
Product Details
Post Office - Platinum Card
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What's the deal?
The Post Office credit card offers 0% commission on purchases made overseas, 0% on UK purchases for 3 months, 0% on balance transfers for 12 months plus an additional 5 months' worth of interest-free balance transfers made available on your card's first and second anniversaries.
What makes it great?
The vast majority of credit cards available in the UK apply a 2.75% charge to all foreign transactions which can add to the cost of your overseas purchases considerably.
The Post Office credit card is one of the few to offer commission-free foreign transactions whether you're in Europe or any other part of the world. Additionally, by working off the Visa or Mastercard wholesale exchange rate this credit card ensures that you're getting the best currency conversion possible when you spend abroad.
Who would it suit?
While the Post Office credit card offers deals on balance transfers and new purchases it's likely to be of most benefit to holidaymakers and frequent travellers who would otherwise have to pay a foreign-usage loading fee on all of their purchases overseas.
The commission-free foreign transactions offered by the Post Office credit card are also likely to benefit individuals who frequently make non-sterling purchases from foreign websites. Additionally, by spending on credit card rather than debit card you have the added reassurance of Section 75 protection on all purchases valued between £100 and £30,000.
This card is available to individuals over the age of 18 with an income greater than £8,000.
What's the catch?
While the Post Office don't apply any loading fees to your overseas purchases they do still apply a charge to cash withdrawals so this is something to take into consideration when you're abroad.
When you make a withdrawal from a non-UK cash machine using the Post Office credit card a levy of 2.5% (with a minimum of £3) will be applied and, as is usual for cash advances on credit cards, interest is charged at an elevated APR which is effective immediately. While this isn't significantly greater than that charged by other credit cards for overseas cash withdrawals (charges tend to vary from 2% to 3%) it is an expensive way to withdraw cash and best avoided if you are at all able.
What's the alternative?
Nationwide's Classic and Gold credit card also offer fee-free foreign transactions worldwide, however, this is set to change on 6th May, 2009. After this date a 0.84% charge will be applied to all transactions outside of Europe, rising to 1% on 1st July, 2009. While this undoubtedly adds to the cost of spending outside of Europe Nationwide are only passing on the standard Visa charge that they currently cover rather than adding a profitable commission loading like many other banks.
The Saga credit card is another that offers fee-free foreign transactions within Europe. Available to individuals over 50 it does, however, apply the 1% Visa fee loading to credit card transactions made anywhere else in the world.
We have done our very best to make sure that the information included in this Deal is accurate. However, sometimes offers can be withdrawn or changed at the last minute so please do check that you're able to redeem this Deal before parting with any money, or going out of your way to take advantage of the offer.
