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

M_Thomson

SparciaM wrote:

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.

All of the banks you mention will have charged you around 2.75%. It is just you won't see it as it is calculated in the exchange rate calculation. The original poster's bank Abbey happens to mention this on the statement. Anything bought from the UK in a foriegn currency is charged in the local currency with a currency conversion fee. As if it has been purchased abroad. The only card in the UK not to do this is Nationwide.

payless

Its all in the rate ! .. even with the 2.75% levy the rate charged might look good against tourist cash rates

Aark

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

as far as I was concerned anything bought on-line from a UK destination is charged as UK.

Location is irrelevant; the charge relates to foreign currencies not places.

M_Thomson

Aark wrote:

Location is irrelevant; the charge relates to foreign currencies not places.

I agree with you, this is what people are misunderstanding.

anniecave

I agree, most people just wouldn't notice the 2.75% as it's hidden.

On the original point, I am pretty sure that under law a sale would count as taking place where the seller is, as it's the seller who has the final say in whether to accept the order or not. So if the seller is in the US, I can be buying from anywhere in the world, it's still a US sale.

That's why for example there are tax loopholes for buying goods from Jersey, as they have different tax laws from mainland and the rest of the UK.

Robert_Sterling

Nationwide ... Proud to be different ... which in this case means that unlike most other cards Nationwide does not charge the 2.75% Xtra.

pin

anniecave wrote:

I agree, most people just wouldn't notice the 2.75% as it's hidden.

On the original point, I am pretty sure that under law a sale would count as taking place where the seller is, as it's the seller who has the final say in whether to accept the order or not. So if the seller is in the US, I can be buying from anywhere in the world, it's still a US sale.

That's why for example there are tax loopholes for buying goods from Jersey, as they have different tax laws from mainland and the rest of the UK.

Re the 2.75%, its not hidden, if you read your banks T&C's you will see it will state how much the bank will add as a foreign conversion fee.

Re your second point, under international conventions and accepted norm of consumer law, the law is normally where the buyer is. However one must remember there is also juristiction and choice of law issues.

To the OP, there are no laws or regulations against banks charging extra from using a different currency (as long as they don't hide the fact that they charge extra, which they don't, read your bank's t&cs).

Oh, Jersey is NOT part of the UK.

M_Thomson

pin wrote:

Re the 2.75%, its not hidden, if you read your banks T&C's you will see it will state how much the bank will add as a foreign conversion fee.

Re your second point, under international conventions and accepted norm of consumer law, the law is normally where the buyer is. However one must remember there is also juristiction and choice of law issues.

To the OP, there are no laws or regulations against banks charging extra from using a different currency (as long as they don't hide the fact that they charge extra, which they don't, read your bank's t&cs).

Oh, Jersey is NOT part of the UK.

Agree with you that the fee isn't hidden in the t's and c's, but it is hidden on on a bank statement.

JoseChungsDoomsday

abbey customers shouldn't complain that much - halifax customers get charged £1.50 for both foreign purchases and cash withdrawls abroad!

darbooka

The bank statement specifically says the charge is levied because "you usedyour card outside the UK". It does not say that it is because a purchase was made in a foreign currency.
What if a purchase was made in Euro currency? Is Europe considered foreign?