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  • FIRST POST
    • Damagedcar
    • By Damagedcar 30th Sep 17, 12:32 PM
    • 12Posts
    • 1Thanks
    Damagedcar
    An ATM advertising free Euro cash withdrawals charged me for "buying them."
    • #1
    • 30th Sep 17, 12:32 PM
    An ATM advertising free Euro cash withdrawals charged me for "buying them." 30th Sep 17 at 12:32 PM
    I have a FlexPlus account which allows you to withdraw in any currency with no charges and at the perfect rate of exchange. I am going on holiday soon and wanted to withdraw some euros in advance and so I used an ATM that I thought would allow me to withdraw in euros with no added fees.

    However, on seeing the receipt it's charged me the buy rate for Euros which is not at all what I was after. I wanted to withdraw 500 euros which at today's rate of exchange would have cost me £440 with the Flexplus account.

    I called Danske bank about this and they claim that they only buy and sell Euros and not let you withdraw them but that contradict the signs around the ATM.

    Am I in the right here and if so do I have any recourse?

    imgur.cxm/a/kh1Rs
Page 1
    • keithdc
    • By keithdc 30th Sep 17, 1:01 PM
    • 245 Posts
    • 480 Thanks
    keithdc
    • #2
    • 30th Sep 17, 1:01 PM
    • #2
    • 30th Sep 17, 1:01 PM
    I have a FlexPlus account which allows you to withdraw in any currency with no charges and at the perfect rate of exchange. I am going on holiday soon and wanted to withdraw some euros in advance and so I used an ATM that I thought would allow me to withdraw in euros with no added fees.

    However, on seeing the receipt it's charged me the buy rate for Euros which is not at all what I was after. I wanted to withdraw 500 euros which at today's rate of exchange would have cost me £440 with the Flexplus account.

    I called Danske bank about this and they claim that they only buy and sell Euros and not let you withdraw them but that contradict the signs around the ATM.

    Am I in the right here and if so do I have any recourse?

    imgur.cxm/a/kh1Rs
    Originally posted by Damagedcar
    What happened when you followed the suggestions given on reddit three months ago? https://www.reddit.com/r/UKPersonalFinance/comments/6iv5pl/an_atm_advertising_free_euro_cash_withdrawals/

    Personally I would always assume that a cash machine in the UK was 'selling' Euros. The signs could be interpreted in a number of ways- technically there is no commission (just a rubbish rate, so it is 'free').

    The difference is £16- how much hassle is it worth?
    • Damagedcar
    • By Damagedcar 30th Sep 17, 1:04 PM
    • 12 Posts
    • 1 Thanks
    Damagedcar
    • #3
    • 30th Sep 17, 1:04 PM
    • #3
    • 30th Sep 17, 1:04 PM
    The financial ombudsman refused to take the case because I don't bank with Dansk bank.

    So I am open to new suggestions.

    I would fight tooth and nail over 16p if I felt wronged it's a flaw of mine.
    • Fosterdog
    • By Fosterdog 30th Sep 17, 1:57 PM
    • 3,438 Posts
    • 5,865 Thanks
    Fosterdog
    • #4
    • 30th Sep 17, 1:57 PM
    • #4
    • 30th Sep 17, 1:57 PM
    I have a Flexplus account so just checked the details for foreign currency and it is clearly marked as the bureau/ATM owner may make a charge. Online it even then goes on to say that Nationwide do not have any foreign currency dispensers and using another provider you will be bound by their exchange rate.

    It sounds like you didn’t check what exchange rate the actual machine you used offered, I can’t see what they’ve done wrong really.
    • Takeaway_Addict
    • By Takeaway_Addict 30th Sep 17, 2:33 PM
    • 5,668 Posts
    • 6,465 Thanks
    Takeaway_Addict
    • #5
    • 30th Sep 17, 2:33 PM
    • #5
    • 30th Sep 17, 2:33 PM
    The financial ombudsman refused to take the case because I don't bank with Dansk bank.

    So I am open to new suggestions.

    I would fight tooth and nail over 16p if I felt wronged it's a flaw of mine.
    Originally posted by Damagedcar
    Fight tooth and nail then to fix the flaw?
    Don't trust a forum for advice. Get proper paid advice. Any advice given should always be checked
    • Damagedcar
    • By Damagedcar 30th Sep 17, 6:08 PM
    • 12 Posts
    • 1 Thanks
    Damagedcar
    • #6
    • 30th Sep 17, 6:08 PM
    • #6
    • 30th Sep 17, 6:08 PM
    Fight tooth and nail then to fix the flaw?
    Originally posted by Takeaway_Addict
    Doesn't work like that.
    • Damagedcar
    • By Damagedcar 30th Sep 17, 6:10 PM
    • 12 Posts
    • 1 Thanks
    Damagedcar
    • #7
    • 30th Sep 17, 6:10 PM
    • #7
    • 30th Sep 17, 6:10 PM
    I have a Flexplus account so just checked the details for foreign currency and it is clearly marked as the bureau/ATM owner may make a charge. Online it even then goes on to say that Nationwide do not have any foreign currency dispensers and using another provider you will be bound by their exchange rate.

    It sounds like you didn’t check what exchange rate the actual machine you used offered, I can’t see what they’ve done wrong really.
    Originally posted by Fosterdog
    If the atm claims it works in Euros and I can use my account in Euros why should there be an exchange rate from the ATM and not Nationwide?
    • takman
    • By takman 30th Sep 17, 6:14 PM
    • 2,884 Posts
    • 2,402 Thanks
    takman
    • #8
    • 30th Sep 17, 6:14 PM
    • #8
    • 30th Sep 17, 6:14 PM
    If the atm claims it works in Euros and I can use my account in Euros why should there be an exchange rate from the ATM and not Nationwide?
    Originally posted by Damagedcar
    ATM Operators are free to charge what they like to use their machines and withdraw cash. But it must have stated on the screen what the exchange rate would be and the cost before you withdrew the cash?.
    • bris
    • By bris 30th Sep 17, 9:23 PM
    • 7,087 Posts
    • 6,104 Thanks
    bris
    • #9
    • 30th Sep 17, 9:23 PM
    • #9
    • 30th Sep 17, 9:23 PM
    In the UK I always though the "Free withdrawals" was referring to the fact the don't charge you to use the machine. Lots of machines charge a flat fee of around £1.50 just to use the machine.


    I think you are getting mixed up here with what the "free withdrawal" actually means.
    • Manxman in exile
    • By Manxman in exile 30th Sep 17, 9:53 PM
    • 1,026 Posts
    • 719 Thanks
    Manxman in exile
    I have a Flexplus account so just checked the details for foreign currency and it is clearly marked as the bureau/ATM owner may make a charge. Online it even then goes on to say that Nationwide do not have any foreign currency dispensers and using another provider you will be bound by their exchange rate.

    It sounds like you didn’t check what exchange rate the actual machine you used offered, I can’t see what they’ve done wrong really.
    Originally posted by Fosterdog

    What exchange rate did the ATM offer that you agreed to?
    • steampowered
    • By steampowered 30th Sep 17, 10:50 PM
    • 1,949 Posts
    • 1,823 Thanks
    steampowered
    You usually see an exchange rate on the screen. ATMs typically offer you a choice of whether to accept the bank's exchange rate or their exchange rate.
    • Damagedcar
    • By Damagedcar 1st Oct 17, 5:35 PM
    • 12 Posts
    • 1 Thanks
    Damagedcar
    The exchange rate was not displayed on the machine it simply said I was withdrawing 500 euros which was what I was expecting.
    • SnowTiger
    • By SnowTiger 1st Oct 17, 9:49 PM
    • 3,103 Posts
    • 2,084 Thanks
    SnowTiger
    The exchange rate was not displayed on the machine it simply said I was withdrawing 500 euros which was what I was expecting.
    Originally posted by Damagedcar


    Make another (small) withdrawal from the machine, taking a picture of each screen throughout the process.

    Send pictures and a covering letter outlining the issue to Nationwide, requesting a refund of the extra you were charged.

    If Nationwide won't play ball, ask them for a letter of deadlock and take it to the Financial Ombudsman Service.

    If you withdrew €500 you should have been charged €500. The signage clearly says:

    €uro

    Free cash
    withdrawals
    available at this
    Autobank.

    There's no mention of a dodgy exchange rate.
    • steampowered
    • By steampowered 1st Oct 17, 9:59 PM
    • 1,949 Posts
    • 1,823 Thanks
    steampowered
    Ah, I recently withdrew euros using one of those machines.

    If I recall correctly, you can withdraw straight euros (without using their outrageous rubbish exchange rate).

    The problem is that the screens try to steer you towards using their exchange rate. You have to reject their conversion by clicking the right hand button, then reject again when it says "are you sure" - but on the second screen you need to click the left hand button.

    You can get euros at these machines without getting a dodgy exchange rate, but you have to read the screens really carefully.
    • Moneyineptitude
    • By Moneyineptitude 1st Oct 17, 10:44 PM
    • 18,889 Posts
    • 10,114 Thanks
    Moneyineptitude
    In the UK I always though the "Free withdrawals" was referring to the fact the don't charge you to use the machine. Lots of machines charge a flat fee of around £1.50 just to use the machine.
    Originally posted by bris
    I agree that this is what it means by "free cash withdrawals". It just means no fee for using the machine, not that there is no exchange rate mechanism for foreign currency. I would , though, also expect the machine to state this exchange rate prior to acceptance.
    • CardinalWolsey
    • By CardinalWolsey 2nd Oct 17, 3:28 PM
    • 112 Posts
    • 96 Thanks
    CardinalWolsey
    All UK based ATM's are domiciled in GBP. An ATM is not able to establish the currency of the account that your card services, as this is not encoded on the card (but may determine the country of origin of the card, and therefore imply the currency). Some cards can service accounts which can be multi-currency. However, because UK ATM's are domiciled in GBP, whenever you use a multi-currency ATM in the UK to withdraw [typically] either USD or EUR, there will always be a cross-currency conversion - sometimes, there might be two cross-currency conversions.

    1. You hold a GBP bank account, and withdraw EUR500. You will receive precisely €500. There may or may not be a fee applied dependent upon the ATM operator. If fee free, that EUR500 will be converted in to GBP with a margin applied (by the operator - because the ATM is domiciled as GBP) based upon either the prevailing Visa or Mastercard rates. When this is cleared with your bank, they may well then apply their own foreign currency transaction charge.

    2. You hold a EUR bank account, and withdraw EUR500 from a UK ATM. You receive €500, and again they may or may not be a transaction fee applied by the ATM operator. The ATM operator converts €500 in to GBP, applying their margin to the appropriate cross-currency rate. The transaction then clears through your bank, which when applying it to your EUR account, applies both a foreign transaction fee AND their own margin to convert the transaction back from GBP to EUR. Your €500 cash withdrawal from your EUR account has just cost you [for example] €520.

    3. You hold a EUR account (or have an account which is multi-currency, e.g. Revolut), and use an ATM which is domiciled as EUR (e.g. you are using an ATM in Paris). The ATM will offer to perform the transaction in GBP (because it is domiciled as EUR, and your card originates from a UK bank), using the ATM's exchange rate. You reject this, and select to do it in EUR. No conversion carried out by the ATM (although it may well apply a charge for the withdrawal). Your bank is presented for clearing with a transaction for EUR500, to be settled from your EUR account. No foreign transaction fee, no conversion rate. Your €500 withdrawal has cost €500.

    Number one rule - using a multi-currency ATM in the UK will ALWAYS cost you more than you think - always wait until you get to your destination and use an ATM at the port (air, ferry, train station) with an appropriate card (Nationwide, Revolut etc) so you don't pay charges and get good conversion rates. In all of my travels globally I have never landed on foreign soil where there hasn't been an ATM available before you step out of the [air]port.
    Last edited by CardinalWolsey; 02-10-2017 at 3:32 PM.
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