Nationwide Debit Card Foreign Transactions

solarfusion

I know that Nationwide recently started to charge on foreign cash withdrawels but wasn't aware that this included purchases made in shops / restaurants, etc, whilst abroad. This was their (helpful but not really answering my question) response to my question on wheter I would be charged for using my Nationwide Visa debit card in shops / restaurants in Australia:

"You can withdraw up to £300 a day in the UK or the equivalent in local currency from any LINK, CIRRUS or Visa cash machine; subject to available funds. Withdrawals abroad will always be given in the local currency, which is converted to sterling at the exchange rate applicable on the day of the transaction and applied to the account.

ATM's in Australia and New Zealand ask if the account you are withdrawing from is either 'Cheque, Savings or Credit Account'. Please ensure you select the 'Credit Account' option when using your FlexAccount card.

ATM's in Europe have started asking if the account you are withdrawing from is either 'Checking, Savings or Credit Card'. Please ensure you select the 'Checking' option when using your FlexAccount card.

You can withdraw cash abroad with your credit card; please note that these withdrawals are subject to a cash withdrawal fee. For further information about credit card fees please visit our site via the following link:

http://www.nationwide.co.uk/creditcard/GoldCard/more-details.htm

When using a Nationwide debit card or credit card abroad purchases made are commission free, with no foreign currency loading, i.e. the Visa exchange rate applied to Nationwide is passed directly to our customers with no profit margin. To avoid the risk of the retailer applying a currency loading, always request payment in the local currency not £ sterling, under Visa rules the retailer must provide this.

We've implemented changes in our charges policy for Visa debit cards, and credit cards transactions abroad. For more information about these charges please visit our site via the following link:

http://www.nationwide.co.uk/current_account/foreigntransactions.htm"

So to answer my own question before I ask it, I think yes they will charge 1% if I make a purchase in a shop / restaurant in Australia. I guess the Visa wholesale exhange rate plus 1% probably is a good exchange rate anyway.

Thoughts?

ferf1223

solarfusion wrote: »

So to answer my own question before I ask it, I think yes they will charge 1% if I make a purchase in a shop / restaurant in Australia. I guess the Visa wholesale exhange rate plus 1% probably is a good exchange rate anyway.

Thoughts?

I think it would be the same as buying from a foreign website so yes, you would be charged the fee for Australia.

cakeordeath_2

I don't think it's the Visa wholesale exchange rate plus 1%...I think the visa wholesale exchange rate is 1% and that is all they are passing on to you, with no commission for themselves on top.

Quoted from their site:

How much is the fee I’m being charged on foreign transactions?
The fee is 1.00% for any non-sterling transactions made outside of the Visa Europe region.


So it's still the best card to use abroad. (No fee at all if used within the Visa Europe region.)

ferf1223

The "Visa wholesale exchange rate" is the rate that's used for converting one currency to another. As I understand it, the 1% is the fee Visa charge the card issuer, which is now being passed onto the customer.

luci

The only difference you will notice, if you notice, is that the $AU rate will be slight worse than it used to be as the 1% is built into the rate. However that rate will still be far, far better than you will get elsewhere as it is based of the full Interbank/wholesale rate and not the much lower tourist rate.

city_knight

I wonder if the new Payment Services Regulations will finally make the loading on fx transactions more transparent for all. Long overdue is the ban on all the "0% commission" banners at exchange counters.