Nationwide + buying forex online

rogue_element

Does anybody know if Nationwide charge a fee for buying foreign exchange online? For example icecurrency offer a very good rate on Travellers Cheques in USD. My other bank A&A sneakily charged me 2.5% for this.even though it appeared on my statement as UKP (£ sterling). So its not technically a foreign currency transaction.

Went into Nationwide today, but they were clueless and said to ring head office. Their website doesnt state anything too clearly.

Baldur

rogue_element wrote: »

My other bank A&A sneakily charged me 2.5% for this.even though it appeared on my statement as UKP (£ sterling). So its not technically a foreign currency transaction.

Many banks make similar charges for foreign currency transactions and they are clearly itemised in their fees & charges documentation, which you obviously had not read, assuming that you meant A&L, rather than 'A&A' - so hardly "sneaky".

You will pay a charge of 2.0% (at least £2) on any cash you withdraw using your debit card at any Visa cash machine which is not part of the Link Network or at any bank or building society which accepts the Visa card. The charge may also
apply if you buy foreign currency or traveller’s cheques at any outlet that provides
foreign currency.

Another example is Lloyds TSB, which charges the following for buying currency or travellers cheques from any UK outlet (other than their own branches):

All foreign currency and all traveller's cheques: 1.5% of the amount with a minimum transaction charge of £2.00 and a maximum charge for each transaction of £4.50.

Nationwide has no such clause in their fees/charges documentation.

dzug1

Nationwide do not charge a fee - I did it a few months back with no problem.

You may get forced to use your card verifier or Verified by Visa, depending on the merchant.

SG_Guy

I have used Travelex before to buy currency online (as the rates online are not too bad and certainly not as pants as the rates at the airport or high street) and they told me over the phone when I had a query on charges that some banks will levy an additional fee for buying foreign currency online even if the merchant (in this case Travelex) is based in the UK and even if one is using a UK debit card.
When pressed, he said they are not allowed to state on their websites which banks will impose an additional charge and which ones won't. As Baldur has posted, LTSB is one bank that will impose an additional charge. I know first direct does not (at least not in the recent past).
The recommendation is to check with your bank before buying currency online with a debit card. Don't assume that if it is a UK merchant and if you are using a UK debit card that the transaction will be fee-free.