Abbey charges 2.75% fee for buying online?!?!

darbooka

Here's something I discovered on the printed statement sent in the post - thank goodness I didn't opt for online statements only, or else I might never have been told at all, even after the fact as in this case...
After making a very small debit card purchase on the Internet, from an American online business charging in dollars, Abbey notes: "You used your card outside the UK this month, so you have been charged a foreign exchange fee (2.75% of the value)".
Aren't international and internet consumer contracts considered by UK regulators and courts to take place where the the consumer is located - and not at the location of the supplying business? So although the purchase was made online, I did NOT use my card "outside the UK" as Abbey contends! I actual fact I made the purchase in my own home. Additonally, I never knew of any such charge for using the card in this way anyway and as far as I'm aware none of my other cards or accounts have ever charged me in this way for an Internet purchase in dollars.
I'm aware of such foreign exchange fee being charged for using your bank card in a foreign cash machine abroad, but buying on the Internet from your home is totally different. Especially since I hadn't gone abroad this month so could not have used my card anywhere but in the UK.
Is this an unfair bank charge?

Aark

"You used your card outside the UK this month, so you have been charged a foreign exchange fee (2.75% of the value)".
Aren't international and Internet consumer contracts considered by UK regulators and courts to take place where the the consumer is located - and not at the location of the supplying business? So although the purchase was made on-line, I did NOT use my card "outside the UK" as Abbey contends!

Abbey are probably making it more complicated by trying to explain it that way. The charge is for purchases made in a foreign currency, irrespective of how that purchase is made.

Additionally, I never knew of any such charge for using the card in this way anyway and as far as I'm aware none of my other cards or accounts have ever charged me in this way for an Internet purchase in dollars.

They probably just hid it in the exchange rate they used. The only major card issuer I know of that doesn't have this charge is Nationwide.

Is this an unfair bank charge?

No. It is a charge for a service provided (foreign currency exchange) stated in the Terms & Conditions. It is proportional to the amount of the purchase, so I cannot see that any claim that it is unfair would succeed.

bengal-stripe

It might be an unfair charge, but certainly not one you can claim back.
There is a mid-market rate for currency exchanges, taken from XE.com, today’s mid market rate is:
1 GBP = 1.88769 USD

Are your "mid-market" currency rates buy rates or sell rates?

The mid-market rates shown in our information services are neither "buy" rates nor "sell" rates. Mid-market rates are derived from mid-point between the buy and sell rates of large-value transactions in the global currency markets.
Since "buy rates" and "sell rates" include overheads and profit margins that are set independently by each foreign exchange provider, they will vary depending on who you're talking to, and will always be different than the mid-market rate.

Todays “buy” and “sell” rates (taken from Thomas Exchange, probably some of the best rates you can get)

Dollars - USA
Buying rate (£) 1.91205
Selling rate (£) 1.86500
http://www.thomasexchangeglobal.co.uk

Virtually all UK banks (apart from Nationwide) charge the 2.75% on either side of the mid-market rate.
Today’s Visa Coprorate Exchange rate (with 2.75% taken into account) is
1 GBP = 1.84 US Dollars
http://corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp

"There Ain't No Such Thing As A Free Lunch".

M_Thomson

darbooka wrote:

Here's something I discovered on the printed statement sent in the post - thank goodness I didn't opt for online statements only, or else I might never have been told at all, even after the fact as in this case...
After making a very small debit card purchase on the Internet, from an American online business charging in dollars, Abbey notes: "You used your card outside the UK this month, so you have been charged a foreign exchange fee (2.75% of the value)".
Aren't international and internet consumer contracts considered by UK regulators and courts to take place where the the consumer is located - and not at the location of the supplying business? So although the purchase was made online, I did NOT use my card "outside the UK" as Abbey contends! I actual fact I made the purchase in my own home. Additonally, I never knew of any such charge for using the card in this way anyway and as far as I'm aware none of my other cards or accounts have ever charged me in this way for an Internet purchase in dollars.
I'm aware of such foreign exchange fee being charged for using your bank card in a foreign cash machine abroad, but buying on the Internet from your home is totally different. Especially since I hadn't gone abroad this month so could not have used my card anywhere but in the UK.
Is this an unfair bank charge?

I can see the point you are trying to make but you did actually use your card for payment oustide of the UK like the statment says. It would have been processed in the US by the American shop. So it is a foriegn currency transaction and will be charged as such.

ginger_nuts

the moral off the story is ,for Foreign purchases use Nationwide .

kenshaz

Good point Ginger,keep it simply ,forget the rest Nationwide are the best,when it comes to spending outside the safety of the UK nest.

kenshaz

M_Thomson wrote:

I can see the point you are trying to make but you did actually use your card for payment oustide of the UK like the statment says. It would have been processed in the US by the American shop. So it is a foriegn currency transaction and will be charged as such.

But you have failed to see and answer the posts point,under UK regulations,and they are in breach

payless

I use my NW card whilst abroad and online forgein, although on a couple of times online NW seemed to have blocked it and I had to use other card ( NW say extra security measures)

M_Thomson

kenshaz wrote:

But you have failed to see and answer the posts point,under UK regulations,and they are in breach

Says who? The law has nothing to do with a bank being able to levy a charge for paying outside of the UK.

kenshaz

M_Thomson wrote:

Says who? The law has nothing to do with a bank being able to levy a charge for paying outside of the UK.

darbooka the first post mentioned regulations, nothing about law as far as I could see,perhaps you have mixed up the threads.Sorry not able to help you.

SparciaM

I've used my debit card to buy from American sites all the time and never get charged. You need to check this out - as, as far as I was concerned anything bought online from a UK destination is charged as UK.

I'm with smile, HSBC and Barclays and they've never charged for debit or credit card transactions at foreign websites.