interest free credit card has to be paid in full because of foreign currency withdraw

yogiberr

hiya,

I've been put into a situation as a result of failure of service on my debit card.

I have a debit card from bank A.It's a maestro card.When I was abroad in Macedonia recently, it wouldn't work in any bank machine, even ones that displayed the "Maestro" symbol.I had more than enough funds to cover the amount I wished to withdraw.

As a direct result of this, I had to use my credit card, from Bank B, to withdrw money at a bank card machine.This card was "interest free" for all purchases.

So, I contacted Bank B, to find out how I could pay off the amount of foreign currency I had withdrawn on my credit card.

However, they informed me that:
1) I have to pay a 3% charge for the foreign currency withdrawal (which I accept)
2) In order to avoid paying interest on the foreign currency withdrawal, I have to pay the entire amount of all the purchases + foreign currency withdrawal

I regard the above as extremely unfair, especially when you consider that I wouldn't be in this position if bank A had provided the Maestro service as they should have.

Does anyone have any advice?
Do I at least have any recourse with Bank A?

Many thanks,

yogi

YorkshireBoy

yogiberr wrote: »

...I wouldn't be in this position if bank A had provided the Maestro service as they should have.

Have bank A admitted (or have you proven) it was their fault, and not that of the network, foreign bank, or ATM provider?

Does anyone have any advice?

Take a back up card/travellers cheques/hard cash in future.

Do I at least have any recourse with Bank A?

I wouldn't have thought so, sorry.

MarkyMarkD

Nobody made you withdraw money using your only credit card. It's your own fault for not taking any alternative means of obtaining cash abroad.

It's well known that there are sometimes glitches with foreign currency ATM withdrawals. Sometimes you card gets blocked because your bank thinks the transaction is fraudulent. Sometimes the links just go down.

You should always have at least 2 ways of getting cash. You did - but one of them is an extremely expensive one.

Bank B hasn't done anything remotely wrong.

Richard019

yogiberr wrote: »

yogiberr wrote: »

2) In order to avoid paying interest on the foreign currency withdrawal, I have to pay the entire amount of all the purchases + foreign currency withdrawal

Just a small disagreement with what they've said, unless your credit card is extremely unusual you won't avoid paying interest on it. As it was a withdrawal interest is charged immediately and the only way to be sure you've ended it is to have a zero balance on your statement for two months running.

I find it extremely unlikely that Bank B will do anything to help you, ultimately they've done what they said they would.

I'd also be surprised if you had any comeback with Bank A, it's not their fault that you didn't take currency with you or that you had to use a credit card instead. You need to find out why your card wouldn't work before anything else can be said. Even if it's just so that you know ahead of future trips that you won't have the same problem.

Incidentally, was the credit card a Visa or a Mastercard? If it's the latter it might be worth mentioning that it worked when asking Bank A why your Maestro wouldn't. As far as I know they use the same systems where as Visa is a different organisation.

CLAPTON

whether or not you pay the lot off depends upon your circumstances and the amounts involved
how much is involved?
do the maths..

CLAPTON

and
PS
always, when abroad always carry at least 2 debit cards and at least two credit cards ...

yogiberr

hiya,

Ta for all the replies.My pal's maestro card worked in the machines where mine's didn't.I'm just going to pay it all off and be done with it.

cheers,

yogi

simongregson

It may pay off to have more than one debit/cash card abroad. I use my Nationwide cash card, as it is free, but I always take my other debit cards too.

It is worth noting that the Nationwide credit card allows you to pay off cash withdrawals straight away, as payments go to the highest interest balance first, so this card could be a useful backup for cash abroad if your debit card didn't work. You would still pay a fee and some interest, however.

jd87

You always have to pay off promotional interest rate balances before you can pay off things on a higher interest rate. This is nothing new.