Buying foreign currency with a credit / debi card - ripoff warning!

nickweeb · 3 March 2006 at 11:05AM

I purchased £200 worth of Czech currency in the Post Office last week using a debit card (cahoot visa debit) and found a 'service charge' for £3.03 on my account. I phoned to query this and they said it is "Visa's charge for purchasing foreign currency". Even though my transaction with the Post Office was entirely in GBP and they perform the currency exchange! What a rip off!

My advice to anyone purchasing currency is to take out cash first and use that to pay the Post Office.

Nick
FARFIELD Records
https://www.shopsonic.com

pin · 3 March 2006 at 11:12AM

Which card were you using? Its a well known fact that certain card providers charge you for using exchange places.

BTW Nationwide don't.

grumbler · 3 March 2006 at 12:05PM

nickweeb wrote:

...a debit card (cahoot visa debit) and found a 'service charge' for £3.03 on my account.

Cahoot current account :

VISA cash withdrawal handling charge (cash machine or over the counter) 1.5% withdrawn amount (£1.50 minimum)*
* Please note that the purchase of travellers cheques or foreign currency with the card in the UK is treated as a Visa cash withdrawal and is subject to the same handling charge.

I'd say that not 'certain card providers', but majority of them charge for this.

My advice to anyone purchasing currency is to take out cash first and use that to pay the Post Office.

As Pin told, get Nationwide card(s) to avoid charges in UK and abroad: The cheapest way to spend overseas: save 6%

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nickweeb · 3 March 2006 at 12:54PM

well, was aware of charges when purchasing foreign currency as the card issuer has to make the transfer, but not when making a payment in GBP. I think it's worth bringing it to others' attention for that reason.

Nick

jonesMUFCforever · 3 March 2006 at 3:27PM

This not a Visa charge but one levied by the card issuer. It is nearly always charged on debit cards and credit cards (similar to cash advance fee).

fatboyonadiet · 3 March 2006 at 3:51PM

I've been charged this by Smile (Co-op) in the past but not Natwest. HTH.

Rafter · 3 March 2006 at 3:58PM

What a fantastic Scam!

Your bank is getting a fee for a debit card transaction (as it would if you used it in Tesco or at a competitor banks cashpoint) and then charges you again because you have made a 'foreign cash withdrawl'

Really don't like this one - it is a complete rip off and money making scheme for Cahoot. (and others)

R.

DesG · 3 March 2006 at 5:34PM

I fell foul of this last year.

Buying some foreign currency at the post office and paid using my Cahoot debit card.

The transaction was in GBP and I didn't expect a charge, just as I wouldn't if using my card in the Tecos next door for a GBP transaction.

I can understand the charge if we were talking about using a credit card, but not a debit card.

Cheers, Des.

ti1980 · 3 March 2006 at 6:12PM

With an M&S &More card you get commission free foreign currency notes and travellers cheques (except for a 1% charge on Sterling Travellers cheques).
I paid for my Euros using my &More card a couple of days after my statement was produced giving me over 50 days interest free as my card was previously clear.

frivolous_fay · 18 September 2006 at 11:39AM

I just found out this is why I've been charged an £8 VISA charge.

Although apparently it's 'well-known', I had no clue this might happen. I've always previously bought currency with cash - on this occasion I'd left it too late and couldn't draw out enough cash on the day. My question is:

- Should Thompson have warned me? I specifically asked if there would be a charge for using my card. Although obviously it's not a charge the agent has levied... if it's really such common knowledge shouldn't they have told me?

When I spoke to my bank (smile) they told me that if I'd bought it from the Post Office, they would have warned me.

tomasxsmith · 18 September 2006 at 2:50PM

I used Egg Money at the Post Office. Didn't get charged and got 1% cashback!

Buying foreign currency with a credit / debi card - ripoff warning!

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