Sneaky HSBC Everyday Account International Fees

mrvaluepack on 08/12/2024 - 06:46
Last edited 08/12/2024 - 10:20 by 1 other user

Went to New Zealand a couple of months ago. Arrived Sunday morning. Used HSBC card at airport atm - was charged ~$750 AUD for NZD$803. Then used Macquarie card at same atm 5 seconds later for same NZD$803 and was only charged ~$730 AUD.

I did some investigating and found that there is a hidden after hours and weekend extra margin fee for international transactions with this debit card, even though its advertised as $0 international transaction fee. (Mods: might want to update the credit card wiki page with this info)

This extra margin fee seems to work out to around 2% on top of current visa exchange rate. I guess this is how they fund the local 2% cashback. Lol

Will never be using this card ever again for international transactions. Only Macquarie from now on.

I also have a NAB card that was converted from an old Citi transaction account. It's been sitting in my drawer but haven't been used. Does anyone know if this also has the same sneaky margin/fees as HSBC?

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  Dollar General on 08/12/2024 - 07:00

  If what you found is correct, I would discuss it with the ACCC. No international fees should mean that.

  Banks have a habit of misleading and deceptive conduct

  • 

    mrvaluepack on 08/12/2024 - 07:10

    +3

    The mention of the extra margin fee on the weekend and after hours is buried somewhere on page 52 of their T&Cs. So not sure how this would stand up with ACCC.

    • 

      movieman on 09/12/2024 - 16:58

      Thanks for the heads up.

      Was thinking to get it as a travel card, but now know to avoid it.

      Quite happy with UP at the moment.

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  chillybags on 08/12/2024 - 07:18

  +1

  I had the same thing using my HSBC card and ING car. Worked out around 2.3% difference in exchange rate (with HSBC being worse). Needless to say the HSBC car has gone into the travel wallet and is there as a backup only now.

  Withdrew 80 euro from an ATM with HSBC and got charged $132.54 and minutes later with the ING card and charged $129.55. It was 7th of October so midweek.

  • 

    mrvaluepack on 08/12/2024 - 07:24

    Thanks for sharing. It took me weeks to figure out if it was the VISA exchange rate was really that bad vs MASTERCARD, or was this HSBCs own doing.

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  foxmulder on 08/12/2024 - 08:30

  +3

  I know this already. Thus why I only use HSBC for local spending. Why you don't just use your Macquarie or Wise overseas. Ubank is also good. I'm also getting Bendigo credit card but approval process takes forever.

  • 

    mrvaluepack on 08/12/2024 - 10:34

    Since when did you find out? I've had this HSBC card for more than 7 years and never knew about this hidden surcharge on weekends.

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  Ocker on 08/12/2024 - 08:52

  +1

  With the fx markets closed over the weekend it is not unusual for banks to load their fx rate margins to allow for any unknown factor occurring that would influence the interbank rates.

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    mrvaluepack on 08/12/2024 - 10:31

    Macquarie doesn't do that.

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  Coops1 on 08/12/2024 - 08:56

  Revolut has a similar “weekend” charge. I just use Revolut on weekdays

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  AndyRates on 08/12/2024 - 10:00

  Is this th HSBC global currency account? That is strange if it is that they charge a weekend fee

  • 

    mrvaluepack on 08/12/2024 - 10:32

    No, its the everyday transaction account.

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  c64 on 08/12/2024 - 11:54

  the HSBC card is VISA, the macquarie card is Mastercard. you should be able to verify the exchanges rates at the respective websites

  • 

    mrvaluepack on 08/12/2024 - 13:23

    I was well aware of that beforehand. VISA & mastercard spot rates are extremely similar but NOT as big as 2% in difference which is massive in the fx world.

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  milanoxpress on 08/12/2024 - 20:21

  +2

  So it’s not $0 international transaction fee with HSBC.
  hsbc bank is actually charging at least 2% fee compared to other banks that state $0 int’l transaction fee.
  Better not use hsbc for overseas transaction in the future until they fix the “hidden” extra charge. Not good enough, hsbc!
  $20 difference from nzd exchange is not a small amount from OPs exchange experience. It all adds up, if you withdraw higher amount then you get slugged with even higher amount.
  Better stick with Macquarie, ING, UBank debit card for now.
  I also use Macquarie when buying online in foreign currency. With ING can’t be bothered going through endless hoops to get fee free status.

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  kawinuyo on 08/12/2024 - 20:40

  +3

  Can confirm the NAB card converted from Citi is working exactly like the old Citi. Was in HK Feb and November and transactions were almost the rate you can google. e.g. $1000 AUD taken out in HKD was like $1004.something. I checked every time I withdrew.

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  FirstWizard on 10/12/2024 - 10:56

  +1

  I thought their T&Cs were quite clear that they use the "HSBC exchange rate" (RealTime or Daily rate, depending on the time) for the 10 currencies and not the Visa rate.
  Visa rate is only used for currencies not listed.
  I've always found that Visa/Master rate is better than anything a bank would give. I haven't researched much on how HSBC's real-time rates compare. However, the additional headache of timing the transactions has always put me off using my HSBC card overseas.

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    mrvaluepack on 10/12/2024 - 19:33

    I guess you are one of the minority who reads through every 100 plus pages of T&Cs you sign up for.