MSE News: Mystery new debit card charges revealed

Toe-Jam

jambosans wrote: »

In Sterling. However they do charge £1.50 plus 2.75% for foreign currency card transactions. (link)

Unless the OP is confused, and these transactions took place in a foreign currency (Paypal and Amazon.com - possibly; Asda, Topman, etc. - unlikely), then the charges are incorrect.

The problem with Paypal and Amazon is their processing centre is in Luxembourg so technically its a foreign transaction, just not a foreign currency. Thats why you get charged the £1.50 and not the 2.75%.

I have no idea why you would get charged for Asda and Topman.

jambosans

Toe-Jam wrote: »

The problem with Paypal and Amazon is their processing centre is in Luxembourg so technically its a foreign transaction, just not a foreign currency. Thats why you get charged the £1.50 and not the 2.75%.

I did not realise HBOS distinguished between a foreign transaction and foreign currency? I understand the difference, but thought both charges were applied in all circumstances. So the £1.50 will be applied if a transaction is processed on foreign soil but still in Sterling?

Incidentally the reason I printed the ".com" (instead of ".co.uk") of Amazon, was to highlight that this would attract both fees as the transaction would be processed in USD.

Toe-Jam

jambosans wrote: »

I did not realise HBOS distinguished between a foreign transaction and foreign currency? I understand the difference, but thought both charges were applied in all circumstances. So the £1.50 will be applied if a transaction is processed on foreign soil but still in Sterling?

Incidentally the reason I printed the ".com" (instead of ".co.uk") of Amazon, was to highlight that this would attract both fees as the transaction would be processed in USD.

Yes it is a computer problem, and you'll get a blue peter badge before you get someone a halifax who understands what your talking about.

Because the transacations are sent from europe to halifax for processing the system automatically assumes its not a domestic transaction i.e not sterling so it puts 1.50 on the transaction. All it sees is the location. I.e not UK.

I have a Santander Acc and live in Northern Ireland. If i use the card in some ATM's that are in towns right on the border but still in the UK it charges me international fee's on sterling. Its really annoying.

6 Jul 10 CASH WITHDRAWAL AT ULSTER BANK ATM ASDA STRABANE 2, STRABANE, 10.00 GBP, ON 16-07-2010 (INTERNATIONAL) 10.28

Its like when you use the atm abroad and it asks do you want the money in sterling or euros, even if you select sterling, you still pay the 1.50. you just don't pay halifax's fee for currency (2.75%) because you already paid it to the atm owner.

tightarsey

coolesticeking wrote: »

To be honest with the Co-Op yes they should have really just changed the card numbers to avoid this when they changed to VISA Debit.

A lot of places are now seeing Co-Op's cards as VISA Debit instead of Electron but some are not.

They still see them as Electron and not going through as VISA Debit...

To blame, it's the acquiring bank or service provider that the merchant is using for not updating the BIN database they use not the Co-Op's..

David. Wrong - On the one hand you say the Cooperative 'should' have really just changed card number to avoid the problem, and then you say its not the Cooperative Bank's Fault? Who do you think the retailer's get their info from regarding bin types? Answer: The Cooperative.

Cooperative issued these cards with the same card number, Cooperative made the request to reclaissify the bin type of 4508 to Visa Debit, while there are still valid Visa Electron Cards using/in use with bin type 4508.

Card processing firms update their info from the Visa bin type tables - Retailers are NOT to Blame - THE COOOPERATIVE BANK IS - and should repay all fees paid by customers who have been incorrectly charged.

This would not have happened if Cooperative had used the correct Visa Debit bin type 4988 , used by their 'real' Visa Debit Card.

I get fed up with this 'Cooperative is not to blame', they are wholly to blame, and its about time they put the hands up to - and repaid all Customers fees incurred using various travel websites for Cooperative's mistake- when Customers are using a valid Cooperative Visa Electron Card.

Cooperative are trying their damn hardest to avoid any sh*t sticking to them, the bullsht you get regarding this matter from their customer service - but they are in the wrong here and sooner or later it will.

Olipro

Toe-Jam wrote: »

The problem with Paypal and Amazon is their processing centre is in Luxembourg so technically its a foreign transaction, just not a foreign currency. Thats why you get charged the £1.50 and not the 2.75%.

not quite; it only applies to non-sterling transactions, location doesn't matter... and even if it did, even though PayPal are indeed based in Luxembourg, they use HSBC UK for processing UK cards.

JavaKrypt

jambosans wrote: »

In Sterling. However they do charge £1.50 plus 2.75% for foreign currency card transactions.



Unless the OP is confused, and these transactions took place in a foreign currency (Paypal and Amazon.com - possibly; Asda, Topman, etc. - unlikely), then the charges are incorrect.

@OP: I would collate all the charge details, and make a formal written complaint (sent recorded delivery), process linked below:-

I guess that makes sense, but I have been within the UK when using my card, so I'm rather peed that I'm still being charged for paying when something isn't in Sterling (even though its automatically converted through PayPal). I've still been charged every once in a while in UK stores paying with my card through PIN, so something isn't adding up. I will write a letter and complain, I knew they were taking me for a ride to some extent. I think I'll be leaving them too considering their ridiculous procedures.