Nationwide USD ATM withdrawl by Debit Card v Cash Cash

keeperbear

There has been much debate about the fee Nationwide has introduced for using a VISA debit card for ATM withdrawals outside of Europe.

As a Nationwide debit card holder, I was annoyed about this as my mate was teasing me that his cash card was still fee free. Well, here is some evidence to see the total fees. We both withdrew the same amount of USD at the same cash machine in the U.S on 19th May, and the exchange rates charged to our flexaccounts were as follows:

Debit card $1.5449
Cash card $1.5426

This suggests that the VISA debit card appears to offer a better total rate at the moment even with the extra fee charged. These rates were based upon the GBP amount deducted from our bank accounts.

BruceyBonus

Nationwide aren't charging on debit cards until 1st June.

dzug1

That sort of variation could happen if you made two withdrawals with the same card on the same day - it's not a static rate but varies continuously.

rb10

The debit card is a Visa card, so goes by the Visa exchange rate. The cash card is Cirrus, so has a different exchange rate (as it is a different company).

So on this particular day, you had a slightly better rate. On another day, the rates may well be the other way around.

keeperbear

BruceyBonus wrote: »

Nationwide aren't charging on debit cards until 1st June.

I am sorry but you are totally wrong. As of 6th May they charge 0.84% for withdrawals outside of Europe.

endure

I've used my Nationwide ATM card to make two withdrawals within seconds of each other in Thailand and the exchange rate was different for each withdrawal. This happens on a regular basis.

keeperbear

rb10 wrote: »

The debit card is a Visa card, so goes by the Visa exchange rate. The cash card is Cirrus, so has a different exchange rate (as it is a different company).

So on this particular day, you had a slightly better rate. On another day, the rates may well be the other way around.

I understand this but it is some daily 'difference' if the visa debit rate is higher even after accounting for Nationwide's 0.84% fee on the transaction. Same thing happened on a similar withdrawal 24 hours later.

keeperbear

endure wrote: »

I've used my Nationwide ATM card to make two withdrawals within seconds of each other in Thailand and the exchange rate was different for each withdrawal.

So what? What was the difference? Marginal at best. I am talking about a difference of over 0.84% if you include the visa debit fee.

BruceyBonus

keeperbear wrote: »

I am sorry but you are totally wrong. As of 6th May they charge 0.84% for withdrawals outside of Europe.

"We will start to pass this fee onto you from 6 May 2009 on credit card and from 1 June 2009 on debit card and it will be included in the sterling amount shown on your statement."
http://www.nationwide.co.uk/current_account/foreigntransactions.htm

d00fus

As BruceyBonus pointed out the fee doesn't come into effect until 1 June for debit cards, so the difference isn't a result of that. I've done the same test a number of times and I would guess that Mastercard (who own Cirrus) provide a very slightly worse wholesale rate than Visa. It always seems to be on the order of 0.15% difference in favour of Visa. Obviously that will change though after 1st June