Best Method Of Payment ?
Thread Starter
Joined: Dec 2007
Posts: 14
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From: berkshire
Best Method Of Payment ?
Hi all,
I'm going down to South Africa to train for my PPL soon.
I will be paying as i fly.
Can anybody please tell me,what the best way to pay would be to get the best rate?
Pay by Visa Debit card after the lesson, Credit Card ,or take money out and exchange it ?
Many thanks.
I'm going down to South Africa to train for my PPL soon.
I will be paying as i fly.
Can anybody please tell me,what the best way to pay would be to get the best rate?
Pay by Visa Debit card after the lesson, Credit Card ,or take money out and exchange it ?
Many thanks.
Joined: Feb 2001
Posts: 3,052
Likes: 0
From: In transit
A typical UK credit card will have a loading of approx 2.75%. Debit cards vary, you'd need to ask your bank.
Taking cash out and exchanging it there won't give you a significantly better rate and carries a security risk (not just because it's SA .... the same applies anywhere).
If you want to budget up front for the costs I would suggest you do a bank transfer or get a draft drawn up by your UK bank in ZAR and take with you. That is likely to be the cheapest option but it means paying a lump sum, unless you split the payments, but then your transaction fees become greater.
Guess what .... however you do it the banks make the money.
The only other option is to get someone in SA whom you trust, and who needs sterling, to do a swap.
Taking cash out and exchanging it there won't give you a significantly better rate and carries a security risk (not just because it's SA .... the same applies anywhere).
If you want to budget up front for the costs I would suggest you do a bank transfer or get a draft drawn up by your UK bank in ZAR and take with you. That is likely to be the cheapest option but it means paying a lump sum, unless you split the payments, but then your transaction fees become greater.
Guess what .... however you do it the banks make the money.
The only other option is to get someone in SA whom you trust, and who needs sterling, to do a swap.
Joined: Jan 1999
Posts: 6,209
Likes: 2
From: north of barlu
As I have seen people kiss godbye to large sums of money by paying "up front" I have to advise you to pay as you fly and do this by credit card as the credit card company offer some protection if the company you are trainning goes bust.
You say you are paying as you go which is a good start but just to get this clear for any one else who is about to start flying trainning!
Don't pay up front & use a credit card.
You say you are paying as you go which is a good start but just to get this clear for any one else who is about to start flying trainning!
Don't pay up front & use a credit card.
Joined: Oct 2006
Posts: 896
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From: Strathaven Airfield
Hi,
In the US, I have used Travelex and Fairfx debit cards. Works really well. Don't know if they do the Rand.
Basically, you send them the cash and they charge up a debit card for you.
There are many companies offering this service, but some charge for all withdrawals, some for recharging, some for ATM withdrawals. All will have charges for the Foreign Exchange between, say, pounds and dollars.
The two mentioned were among the best I found. Travelex gave you a spare card free, handy if one gets stolen or lost.
The handy thing with the FairFX one was that it is a Visa Electron, so avoided Ryanair charges. But that's now changed ;-(
In the US, I have used Travelex and Fairfx debit cards. Works really well. Don't know if they do the Rand.
Basically, you send them the cash and they charge up a debit card for you.
There are many companies offering this service, but some charge for all withdrawals, some for recharging, some for ATM withdrawals. All will have charges for the Foreign Exchange between, say, pounds and dollars.
The two mentioned were among the best I found. Travelex gave you a spare card free, handy if one gets stolen or lost.
The handy thing with the FairFX one was that it is a Visa Electron, so avoided Ryanair charges. But that's now changed ;-(
niknak
Joined: Dec 2001
Posts: 2,335
Likes: 0
From: UK
The present exchange rate is extremely favourable (around 12.5 rand to the £pound).
Ask at your bank for the best way of doing it, but if you're offered pay in advance terms only do it: a) whenyou are actually over there and b) when paying by credit card.
Alternatively you could withdraw cash from an ATM before each lesson to cover the cost and nothing more, but check to see how much you'll be charged by your bank.
Check out:
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or
Money Saving Expert: Consumer Revenge - Credit Cards, Shopping, Bank Charges, Cheap Flights and more
Both require a bit of research but they will save you a lot of hassle.
Ask at your bank for the best way of doing it, but if you're offered pay in advance terms only do it: a) whenyou are actually over there and b) when paying by credit card.
Alternatively you could withdraw cash from an ATM before each lesson to cover the cost and nothing more, but check to see how much you'll be charged by your bank.
Check out:
Fool.com: Stock Investing Advice | Stock Research
or
Money Saving Expert: Consumer Revenge - Credit Cards, Shopping, Bank Charges, Cheap Flights and more
Both require a bit of research but they will save you a lot of hassle.
Joined: Jul 2005
Posts: 1,929
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From: SoCal
Seconding A & C here 100%. Pay as you go and use a CC for everything, keeping receipts. In the bigger scheme of things, you trade a little money (2.5-2.75%) for a lot more security. Aaaaaaaand: if you have a CC that gives you FF miles, your training may actually get you in the air twice 
Enjoy
Enjoy
Joined: Jan 2000
Posts: 544
Likes: 1
From: Berkshire
If you use either type of card, notify your card issuer before you go that you will be visiting SA (and any other countries en route), so they will not refuse your card - if the computer identifies any abnormal spending out of the UK. SA ( and other countries) have hot spots where cards may "refused" especially where large spends occurr.
This will save you being financially stranded. Take two cards - keep them separate - in case one is "lost".
This will save you being financially stranded. Take two cards - keep them separate - in case one is "lost".
Joined: Feb 2007
Posts: 4,598
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From: Amsterdam
I second the CC option. No hassle, and the cc company will help you somewhat if you fall out with the school and your refund is not given, or the school goes bust, or something like that.
Like Trinity said, give the cc company a heads-up call so they can update your record. A large sum of money to a foreign company with which you have no prior record is one of the prime flags that trigger the cc company fraud detection computers. If there's a note in your file saying you called ahead and this is to be expected, they will not call you about it at 4am.
Also make sure there is actually enough credit on your credit card. Simply deposit some additional money on your credit card up front as if you are paying a huge monthly bill (same account numbers and everything). There's nothing more annoying, credit-card wise, than trying to sort out a credit shortage from a foreign country. (Short of losing the cc altogether, that is.) Oh, and a positive balance in your credit card account actually may bring in a tiny bit of interest.
Like Trinity said, give the cc company a heads-up call so they can update your record. A large sum of money to a foreign company with which you have no prior record is one of the prime flags that trigger the cc company fraud detection computers. If there's a note in your file saying you called ahead and this is to be expected, they will not call you about it at 4am.
Also make sure there is actually enough credit on your credit card. Simply deposit some additional money on your credit card up front as if you are paying a huge monthly bill (same account numbers and everything). There's nothing more annoying, credit-card wise, than trying to sort out a credit shortage from a foreign country. (Short of losing the cc altogether, that is.) Oh, and a positive balance in your credit card account actually may bring in a tiny bit of interest.
Some more money for Capt PPRuNe
Joined: Jan 2002
Posts: 271
Likes: 1
From: Ici
I used to use Nationwide CC (as stevelup said, it is free of the commission charge - typically 2.75%). I now use Abbey Zero which is also commission free - I had a lot of problems with the Nationwide CC being suspended without any warning when I tried to make certain purchases (French SNCF rail tickets, Mobile phone topups for example). The Abbey Card seems free of these "issues."
I believe there is also a CC issued under the UK Post Office which is similar to the Abbey one.
Other Comments (I stand to be corrected on any of these!):
I'm not particularly up to speed with the legal side but I recall that the protection mentioned (£100 - £30k???) is only law with regard to spending (ie contracts made) in the UK (I think that most providers add worldwide cover voluntarily, to their contracts though).
BackPacker mentioned putting the CC into prior credit. Again I suspect that the user is still "protected" from loss by their contract terms but I think the basic cover under the Consumer Credit Act is not applicable because whilst the account is actually in credit (literally) it is not strictly being used to obtain credit (and therefore outside the scope of it). (Vice versa, in a similar way, I understand a current account which is overdrawn also "enjoys" purchase protection under the same statute).
I believe there is also a CC issued under the UK Post Office which is similar to the Abbey one.
Other Comments (I stand to be corrected on any of these!):
I'm not particularly up to speed with the legal side but I recall that the protection mentioned (£100 - £30k???) is only law with regard to spending (ie contracts made) in the UK (I think that most providers add worldwide cover voluntarily, to their contracts though).
BackPacker mentioned putting the CC into prior credit. Again I suspect that the user is still "protected" from loss by their contract terms but I think the basic cover under the Consumer Credit Act is not applicable because whilst the account is actually in credit (literally) it is not strictly being used to obtain credit (and therefore outside the scope of it). (Vice versa, in a similar way, I understand a current account which is overdrawn also "enjoys" purchase protection under the same statute).
Joined: Jan 2000
Posts: 544
Likes: 1
From: Berkshire
Travellers cheques are unlikley to accepted unless "cashed" b4hand into local currrency, + the cost of t/c's, and the exchange rates, normally £ to $ and not SA rand. Nationwide though commission free, "may" load it thru' exchange rate differential - they have to make money somehow
Joined: Feb 2005
Posts: 104
Likes: 0
From: On Earth
Nationwide are starting to charge for use incertain parts of the world outside the UK.
The Post Office Credit Card has no charges when used anywhere in the world.
Defo use a credit card for the protection it offers and you also benefit from a good exchange rate.
The Post Office Credit Card has no charges when used anywhere in the world.
Defo use a credit card for the protection it offers and you also benefit from a good exchange rate.
