Avoiding charges on Sterling to Euro transactions

I have been using TransferWise to make payments in Euros.

I usually make a couple of payments a month; each is around €300 - €350.

However, I have noticed that when using a credit card to make the payment to TransferWise, the payment is treated as a 'cash advance' or money transfer by the card issuer, and attracts a hefty interest charge!

Would I be able to load Sterling from a bank account onto a pre-paid credit card (e.g. WeSwap) and then use the WeSwap card to pay TransferWise without incurring any additional charges?

If not, can anybody suggest a better way to make the Sterling payment?

And does anybody have any tips on how to word a complaint to the card issuer about what I consider 'hidden charges' in order to get the interest charges refunded, or will I have to exhaust the issuer's complaints procedure before taking the complaint to the ombudsman?

Comments

  • agrinnall
    agrinnall Posts: 23,344
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    Use a debit card would seem the obvious solution.
  • Suggest you either send the funds to TW via bank transfer or pay using a debt card. Both should be free.

    With regards complaining - yes in the first instance you need to complain to your credit card provider and Trading Standards.
  • eDicky
    eDicky Posts: 6,547
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    I'm not sure there's anything to complain about, it's common for such transactions with a credit card to be treated as a cash advance - you are 'buying' money to send. So as said, why not use a debit card?

    Alternatively, use Revolut to send the payment, they accept credit card without fee and it is usually treated as a purchase. Interbank rate (weekdays) and no fee up to £5k/month, free international payment..
    Evolution, not revolution
  • dj1471
    dj1471 Posts: 1,968
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    Last time I used TransferWise (last month) they were still charging for debit card payments in contravention of UK law.

    When I complained they demonstrated a very incorrect understanding of the legislation.
  • mgdavid
    mgdavid Posts: 6,705
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    dj1471 wrote: »
    Last time I used TransferWise (last month) they were still charging for debit card payments in contravention of UK law.

    When I complained they demonstrated a very incorrect understanding of the legislation.

    Then use CurrencyFair ! There's no charge to transfer by online bank transfer, their rates are competitive and the exchange fee is £2.50.
    No vested interest, just a satisfied customer...
    The questions that get the best answers are the questions that give most detail....
  • eskbanker
    eskbanker Posts: 30,378
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    does anybody have any tips on how to word a complaint to the card issuer about what I consider 'hidden charges' in order to get the interest charges refunded
    Dear Card Issuer,

    I recently used your card to access cash and was charged as if I'd used your card to access cash!

    This type of devious skullduggery is outrageous....oh, hang on a minute, I get it now.

    Forget it; as you were....

    Love and kisses,

    Stingy8astard
  • dj1471
    dj1471 Posts: 1,968
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    mgdavid wrote: »
    Then use CurrencyFair ! There's no charge to transfer by online bank transfer, their rates are competitive and the exchange fee is £2.50.
    No vested interest, just a satisfied customer...
    TransferWise also don't charge for bank transfers, which is how I paid, I was merely pointing out that advice to the OP to use a debit card will still result in charges.

    Besides, if TransferWise weren't the cheapest I wouldn't have used them! CurrencyFair, like most brokers, don't support my destination currency.
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