Smile Beware!

coolsteel

Just a note to say my daughter bought euro's on her Smile debit card and expected no charge, although the travel agent had no charge using a debit card, Smile on the other hand charge £2 or 2% which ever is greater.
This is of course in their terms and conditions as a cash advance? Are Smile the only bank to do this? as i have never known a charge from banks using a debit card. Needless to say i have just withdrawn cash from my Smile account to pay for my Euro's to save Smile's pathetic fee, really cant see the difference withdrawing cash or using a debit card, but in Smile's eyes there obviously is.
Hope this saves someone some money.
Coolsteel:cool:

Bossyboots

Its not just Smile, abbey also charge a fee for transactions for foreign currency.

I cant see any difference between using the card for buying currency or walking across the road to get the very same money out of the cash point and then going back and buying the currency.

Alfie_E

Bossyboots wrote:

I cant see any difference between using the card for buying currency or walking across the road to get the very same money out of the cash point and then going back and buying the currency.

I can. The two different ways of getting at your money use two different payment networks.

When you “purchase” your euro, you’re using the Visa network. Visa expects to get a payment for every transaction that goes through its network. If you purchase goods, it’s the merchant that has to pay. If the merchant gives you cash from your account, the cost goes to your bank. Your bank then pass it on to you, usually with a markup.

When you take money out of an ATM, you’re using the LINK network. LINK network is paid for, collectively, by the major UK banks. While there is a cost to your bank, we have free banking in the UK, and it’s treated as a normal running cost, just like processing a cheque.

As far as I know, Nationwide are the only UK Visa issuer not to pass on the debit-card cash-withdrawal charge to its customers. UK Maestro cards don’t have this issue. The UK Maestro network is still the same system that used to be called Switch. This is also owned by the major UK banks, so they don’t pass on any charge. It doesn’t really matter to a UK bank whether you get at your money using UK Maestro or from a LINK ATM.

Supermarkets are able to give you “cashback”, as you receive your cash as part of an overall purchase involving goods. They just end up paying the fixed, relatively small, Visa debit-card charge for purchases, whether or not part of it is given to you as cash.

coolsteel

Alfie_E wrote:

I can. The two different ways of getting at your money use two different payment networks.

When you “purchase” your euro, you’re using the Visa network. Visa expects to get a payment for every transaction that goes through its network. If you purchase goods, it’s the merchant that has to pay. If the merchant gives you cash from your account, the cost goes to your bank. Your bank then pass it on to you, usually with a markup.

When you take money out of an ATM, you’re using the LINK network. LINK network is paid for, collectively, by the major UK banks. While there is a cost to your bank, we have free banking in the UK, and it’s treated as a normal running cost, just like processing a cheque.

As far as I know, Nationwide are the only UK Visa issuer not to pass on the debit-card cash-withdrawal charge to its customers. UK Maestro cards don’t have this issue. The UK Maestro network is still the same system that used to be called Switch. This is also owned by the major UK banks, so they don’t pass on any charge. It doesn’t really matter to a UK bank whether you get at your money using UK Maestro or from a LINK ATM.

Supermarkets are able to give you “cashback”, as you receive your cash as part of an overall purchase involving goods. They just end up paying the fixed, relatively small, Visa debit-card charge for purchases, whether or not part of it is given to you as cash.

Thanks Alfie that somewhat clears things up, my daughter in future will just withdraw the cash and pay for her Euro's that way.
Coolsteel:cool:

coolsteel

Bossyboots wrote:

Its not just Smile, abbey also charge a fee for transactions for foreign currency.

I cant see any difference between using the card for buying currency or walking across the road to get the very same money out of the cash point and then going back and buying the currency.

Me neither Bossy, but Alfie has made things clear, still think its the banks exploiting us customers.
Coolsteel:cool: