w_scott

Hi folks
I noted the credit card that I have from my bank in KSA had a very bad exchange rate when I purchase something online. For example, if the market exchange rate is $1=3.75 SAR then the credit card considers it $1=3.88 SAR. I wonder if all banks in KSA like this or only my bank? when I asked the bank they said they have nothing to do with this as it is from the credit card company! Anyone has any experience on this? should I change my bank?
A related question, any advice where/how is the best way to exchange SAR to GBP?

Thanks
Scott

psychopomp1

Most credit card issuers worldwide charge a x% commission charge (typically 2-5%) on top of the visa/Mastercard/Amex wholesale exchange rate so what you’ve experienced is perfectly normal. You need to find a commission free credit card in KSA, though chances are it will come with a hefty annual fee as such a perk tends to come with premium cards in the GCC (from my experience). So depending on your usage, any exchange rate savings might be wiped out by the annual fee.

Otherwise next time you go back to the UK, if you can, apply for a commission free card such as the Halifax Clarity Mastercard and/or the Santander Zero Mastercard, both carry no annual fee and you can use these cards for any foreign purchases (and ATM cash withdrawals) without having to worry about exchange rate markup.

UKMS

If you are making online purchases in US$ you could consider a Wise account ..... not sure if it would fit your scenario but worth a look

psychopomp1

The Wise card is a pre-paid debit card so the OP will need to have funds pre-loaded into his Wise account. But perhaps more importantly, being a debit card it doesn't offer the same consumer protection guarantees as a credit card does.

UKMS

which is why I said ‘consider’ …. It’s also a little more than a pre-paid debit card (which it used to be)

Is there any consumer protection in KSA ?

w_scott

Thanks for your feedback. When I was in Qatar, my bank used to not overcharge me for any use of the credit card. Always the exchange rate was the same as in the market. I wish if I could keep that card!

w_scott

Does WISE work in KSA? and how to get such a card? do I need to have an account with wise with some deposit?

w_scott

I think a pre-paid credit card with no extra charge is a good solution. I used to have one in Qatar and to charge when needed with small amounts. I found it useful, especially for smaller purchases online.