Reply From Nationwide Re:Stopping Fee Free Debit Card Cash Withdrawls Abroad

MykieMike

We do appreciate your loyalty to Nationwide and are constantly striving to find the best possible ways to deliver real value to our members. You have asked why customers who use their FlexAccount as their main account can't continue to use their cards abroad without charges. Commission free card use abroad has been a long standing benefit of Nationwide’s FlexAccount but, even though it has been available for more than ten years, only around a third of our current account holders have used it each year. Over time we have found it has provided a huge benefit to a tiny minority of our current account members, such as regular business travellers. At the same time it has benefited others by only a modest amount and it has not benefited the majority of our current account members at all. It is simply not an equitable way to share member value. However, the majority can benefit from free travel insurance if they make FlexAccount their main account and the value they would receive will be shared more equitably.

We have a responsibility to manage the business in the most prudent and sustainable way for our membership as a whole and a key part of our corporate strategy is to encourage more members to use their FlexAccount as their main current account. We believe the free multi-trip travel insurance is more likely to encourage people to use their FlexAccount as their main account, particularly as it covers holidays booked in the UK as well as in the rest of Europe.

The future introduction of 2% commission for debit card use abroad and the £1 cash withdrawal fee also have to be seen in the context of the charges made by our competitors. Nationwide’s planned charges are still lower than those made by the majority of our high street competitors. Very importantly, the changes only apply to FlexAccount customers and not Nationwide's credit card customers. Nationwide credit card customers will continue to be charged a 1% fee outside Europe and no foreign usage charges within Europe.

I do understand your concerns and I acknowledge that you are not alone in really appreciating the existing arrangements. I have tried to give you the fullest possible explanation of the rationale behind the changes. We did not take this step lightly, but we have to put in place benefits that are more equitable, prudent and sustainable.


Just wondering as they say you can use the Nationwide credit card in Europe for cash withdrawls with no foreign usage charges. If I preload the credit card with my spending money before I go on holiday whether I would not be charged any interest either?

Donnie

MykieMike wrote: »

We do appreciate your loyalty to Nationwide and are constantly striving to find the best possible ways to deliver real value to our members. You have asked why customers who use their FlexAccount as their main account can't continue to use their cards abroad without charges. Commission free card use abroad has been a long standing benefit of Nationwide’s FlexAccount but, even though it has been available for more than ten years, only around a third of our current account holders have used it each year. Over time we have found it has provided a huge benefit to a tiny minority of our current account members, such as regular business travellers. At the same time it has benefited others by only a modest amount and it has not benefited the majority of our current account members at all. It is simply not an equitable way to share member value. However, the majority can benefit from free travel insurance if they make FlexAccount their main account and the value they would receive will be shared more equitably.

We have a responsibility to manage the business in the most prudent and sustainable way for our membership as a whole and a key part of our corporate strategy is to encourage more members to use their FlexAccount as their main current account. We believe the free multi-trip travel insurance is more likely to encourage people to use their FlexAccount as their main account, particularly as it covers holidays booked in the UK as well as in the rest of Europe.

The future introduction of 2% commission for debit card use abroad and the £1 cash withdrawal fee also have to be seen in the context of the charges made by our competitors. Nationwide’s planned charges are still lower than those made by the majority of our high street competitors. Very importantly, the changes only apply to FlexAccount customers and not Nationwide's credit card customers. Nationwide credit card customers will continue to be charged a 1% fee outside Europe and no foreign usage charges within Europe.

I do understand your concerns and I acknowledge that you are not alone in really appreciating the existing arrangements. I have tried to give you the fullest possible explanation of the rationale behind the changes. We did not take this step lightly, but we have to put in place benefits that are more equitable, prudent and sustainable.


Just wondering as they say you can use the Nationwide credit card in Europe for cash withdrawals with no foreign usage charges. If I preload the credit card with my spending money before I go on holiday whether I would not be charged any interest either?

You won't be charged interest, only the cash withdrawal charge.

Of course their reply is utter claptrap.

It's more about penalising at least "one third" of their customers. That "one third" who travel, as well as others, may have their own travel insurance arrangements or find that the Insurance simply doesn't fit their needs.

I hope that many will 'neglect' their Flexaccount, taking their business elsewhere.
Hopefully, if they see that their "equitable changes" bring in no revenue and only a loss of custom and poor publicity, they may realise how very poor this looks to at least 33% of their customers.

Don't give them a penny of revenue from their new cash withdrawal charge. Punish them where it matters.

apt

Yes, it is pure garbage to suggest European travel insurance will benefit a wider cross-section of members than the present benefit. I do hope there is an opposition candidate for next year's Nationwide board elections. Usually they only get a token vote, but Beale and his fat cat buddies have alienated a large part of the Nationwide membership.

photome

MykieMike wrote: »

We do appreciate your loyalty to Nationwide and are constantly striving to find the best possible ways to deliver real value to our members. You have asked why customers who use their FlexAccount as their main account can't continue to use their cards abroad without charges. Commission free card use abroad has been a long standing benefit of Nationwide’s FlexAccount but, even though it has been available for more than ten years, only around a third of our current account holders have used it each year. Over time we have found it has provided a huge benefit to a tiny minority of our current account members, such as regular business travellers. At the same time it has benefited others by only a modest amount and it has not benefited the majority of our current account members at all. It is simply not an equitable way to share member value. However, the majority can benefit from free travel insurance if they make FlexAccount their main account and the value they would receive will be shared more equitably.

We have a responsibility to manage the business in the most prudent and sustainable way for our membership as a whole and a key part of our corporate strategy is to encourage more members to use their FlexAccount as their main current account. We believe the free multi-trip travel insurance is more likely to encourage people to use their FlexAccount as their main account, particularly as it covers holidays booked in the UK as well as in the rest of Europe.

The future introduction of 2% commission for debit card use abroad and the £1 cash withdrawal fee also have to be seen in the context of the charges made by our competitors. Nationwide’s planned charges are still lower than those made by the majority of our high street competitors. Very importantly, the changes only apply to FlexAccount customers and not Nationwide's credit card customers. Nationwide credit card customers will continue to be charged a 1% fee outside Europe and no foreign usage charges within Europe.

I do understand your concerns and I acknowledge that you are not alone in really appreciating the existing arrangements. I have tried to give you the fullest possible explanation of the rationale behind the changes. We did not take this step lightly, but we have to put in place benefits that are more equitable, prudent and sustainable.


Just wondering as they say you can use the Nationwide credit card in Europe for cash withdrawls with no foreign usage charges. If I preload the credit card with my spending money before I go on holiday whether I would not be charged any interest either?[/QUOTE]


The new Halifax Clarity card doesnt have any withdrawal charges but the t and c prohibit preloading to avoid interest charges, maybe Nationwide is the same

photome

apt wrote: »

Yes, it is pure garbage to suggest European travel insurance will benefit a wider cross-section of members than the present benefit. I do hope there is an opposition candidate for next year's Nationwide board elections. Usually they only get a token vote, but Beale and his fat cat buddies have alienated a large part of the Nationwide membership.

I didnt realise it will only be european travel insurance. I was tempted to use the flex acc as my main acc, but I need worldwide so its a non starter

siamese0109

The new Halifax Clarity card doesnt have any withdrawal charges but the t and c prohibit preloading to avoid interest charges, maybe Nationwide is the same[/QUOTE]

It is - Section 8d of the terms and conditions state
You should not make payments that place your account in credit.

You could use on-line banking on the day you withdraw your cash though to transfer a payment to your credit card account! That would mean you'd probably pay about 3 days interest maximum

aerostar

apt wrote: »

Yes, it is pure garbage to suggest European travel insurance will benefit a wider cross-section of members than the present benefit. I do hope there is an opposition candidate for next year's Nationwide board elections. Usually they only get a token vote, but Beale and his fat cat buddies have alienated a large part of the Nationwide membership.

I believe that the "free travel insurance" only applies up to 65 year olds. That puts me out, and I suspect thousands of others, so their "benefits" are penalising many customers.

As a mutual society (definition:- Organization owned by its members and managed for their benefit, such as a building society or friendly society), it seems that it is not being run for the benefit of all their members.


My savings and account will be moving shortly.

luci

I emailed the Nationwide last night asking if preloading their credit card was against their T&C's as I could find the answer on their website.

Got a reply saying more or less that there is nothing to stop you, however they would prefer that you didn't.

However there is a 2.5% charge (minimum £3) on withdrawing cash on their credit card.

ince_mon

siamese0109 wrote: »

The new Halifax Clarity card doesnt have any withdrawal charges but the t and c prohibit preloading to avoid interest charges, maybe Nationwide is the same

It is - Section 8d of the terms and conditions state
You should not make payments that place your account in credit.

You could use on-line banking on the day you withdraw your cash though to transfer a payment to your credit card account! That would mean you'd probably pay about 3 days interest maximum [/QUOTE]

Well thats strange,because i've been told that i can put money onto the card. I'll be checking with the Halifax next week.

MrTomato

only a third of people make use of free overseas use. So what makes them think more than a third are going to sign up for travel insurance?

It's a load of rubbish. And I don't even have a Nationwide account.

C_Mababejive

So what are the choices for alternative current accounts then if santanders CS is as carp as reputed.?

UPDATE..!

Just had a phone call from a very nice man at Firstdirect. I already have a relationship with them although the account is dormant but he has kindly deposited 100 wongers in said account with no obligation on my part. I must say it makes a nice change from being taken for granted. After more than 20 years,I think NW are toast..