Nationwide to ditch free transactions outside Europe and raise rates

King_Of_Fools

Frontera2 wrote: »

Does anyone know if Nationwide are now going to start charing for cash machine withdrawals abroad then?

Only 1% outside of Europe if you have the Visa Debit card.

KTF

Degenerate wrote: »

A cashcard can't be a Mastercard. Do you mean Cirrus?

Well Cirrus is a division of Mastercard so same thing really. Point being its a different network to Visa so may have higher (or lower) charges when this is brought in to line.

Blink_Eden

KTF wrote: »

The cashcard accounts are mastercard.

My Cash card is visa.

Amazed to read this seeing as I applied for a Gold Card a week ago specifically for the fact that the T&C's still mention it being free to use abroad.

And it still says it today!!

http://www.nationwide.co.uk/creditcard/goldcard/default.htm?source=nationwide&campaign=winterevent&execution=creditcard_hotspot_22122008

commission free purchases abroad

SiuLoong

Blink_Eden wrote: »

My Cash card is visa.

Amazed to read this seeing as I applied for a Gold Card a week ago specifically for the fact that the T&C's still mention it being free to use abroad.

And it still says it today!!

http://www.nationwide.co.uk/creditcard/goldcard/default.htm?source=nationwide&campaign=winterevent&execution=creditcard_hotspot_22122008

commission free purchases abroad

Thats because it is still commission free.. the commission is the 2.75% or similar other cards use - the 1% charge here is courtesy of Visa and not Nationwide.. its just that previously Nationwide paid it for us.

I'm not in favour of it or supporting Nationwide in any way over it but people need to have their details correct...

withnell

ViolaLass wrote: »

Since Nationwide is a BS, rather than a bank, I would rather it defend the principle of fee-free banking. And whatever they do, we, the members, should have heard about it from them first, not from a website.

But the whole point is they're just passing on an unavoidable fee that VISA are charging them - they're not profiting out of the move, just stopping the product becoming loss making - in which case they'd have to start charging in some other way, for the good of the business as a whole, and therefore the members whose rights you seem keen to protect!

Blink_Eden

SiuLoong wrote: »

Thats because it is still commission free.. the commission is the 2.75% or similar other cards use - the 1% charge here is courtesy of Visa and not Nationwide.. its just that previously Nationwide paid it for us.

I'm not in favour of it or supporting Nationwide in any way over it but people need to have their details correct...

Fair point, but there is no mention of it in the charges either

ChargesBalance transfer fee payable on each balance transfer made within 3 months of account opening 3%
(min £3.00)Cash advances2.50%
(min £3.00)Copies of statementsnilForeign transactions commissionnil

You will no doubt say that it is VISA charging this, and not Nationwide, so it shouldn't be included in Nationwide's charges, but it is disingenuous not to include this charge in the list of charges, bearing in mind that previously they had not charged it.

I have noticed, having now been made aware of this, that there is a section on Credit Cards labelled "Foreign Transations" which mentions this charge, after the usual business-speak phrasing. "By commission-free we mean not adding any additional charge for the service of exchanging currency that generates profit for the Society". They also claim that VISA make a charge and Nationwide currently pays that fee on your behalf. I can't say whether or not that section was there when I applied for the card, as I was not aware that VISA charged for using a card abroad, and I certainly wasn't aware that VISA were charging me for using Nationwide's card, so I wasn't looking to see if Nationwide were paying that charge on my behalf or not.

You could argue that Nationwide are providing me with a card that I can use abroad, and the charge that VISA are levying on the transaction is a charge to Nationwide for the use of their system, in the same way that VISA charge retailers to use the VISA system.

It would be interesting to see if places like Tesco believe that they are being charged for accepting payment by VISA, or if it is the customer who is being charged for the transaction and it is the retailer who is absorbing the cost. (Notice in small shops they charge you if the transaction is of a low value, so passing this cost on to you).

I'm not saying that Nationwide are doing anything wrong in "passing on" the charge, but I think they have been less than transparent in the way they are doing it, and would be interested to see if VISA believe they are charging the card holder or the card issuer for the transaction

And I certainly don't recall receiving any communication from them saying that they are going to start charging me for using my Debit Card abroad, and I have had an account with them for a few years.

Megalomaniac

Blink_Eden wrote: »

And I certainly don't recall receiving any communication from them saying that they are going to start charging me for using my Debit Card abroad, and I have had an account with them for a few years.

I got the update in with my statement this month

I like your thinking though. Visa charge Nationwide... therefore Nationwide are charging us for something they are charged (i.e. passing on the charges to us). I'm not impressed myself, and have withdrawn all bar £1 and will certainly only use the Nationwide Account for foreign travel (it still is the cheapest current account out there for it).

withnell

Blink_Eden wrote: »

Fair point, but there is no mention of it in the charges either

There wouldn't be - it doesn't take effect until 1 May, so there would be no reason for it to be in the conditions as yet.

MiserlyMartin

SiuLoong wrote: »

Thats because it is still commission free.. the commission is the 2.75% or similar other cards use - the 1% charge here is courtesy of Visa and not Nationwide.. its just that previously Nationwide paid it for us.

I'm not in favour of it or supporting Nationwide in any way over it but people need to have their details correct...

Its funny how for all these years, prior to this new charge idea, there was never any mention or awareness of a 0.8% VISA fee, which Nationwide pay 'on our behalf'! Sounds like a pathetic attempt to justify its new charges if you ask me.

Are other banks putting up their cards abroad commission charge by a proportional amount? I suspect not.

King_Of_Fools

MiserlyMartin wrote: »

Are other banks putting up their cards abroad commission charge by a proportional amount? I suspect not.

No, but then they have already been ripping everybody off for years by charging 2.75% - 3% instead of the 0.8% Visa charge.