Lloyds TSB Debit travel money charge

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pension_seeker
pension_seeker Posts: 15 Forumite
edited 17 August 2010 at 7:19PM in Credit cards
I have recently purchased travel money from Tesco & the Post Office, both online transactions, using my Lloyds TSB debit card. Lloyds have charged me £4.50 for each transaction!
The customer service advisor said it is because I chose to shop around for the best exchange rate instead of buying their own travel money.
I explained it was because Lloyds TSB exchange rate wasn't as good as the Post Office or Tesco and could she confirm that I had been penalised for shopping around. She said yes but it's in the terms and conditions.
I then explained that the charge, which is called a 'cash handling fee' is neither transparent or clear on their website but she just repeated "well it is there". What cash have they handled that differs from any other purchase??
I cannot find any terms which state that there will be a £4.50 charge for buying travel money from another source when you use your debit card.
It's my money for gods sake. I'm sure I wouldn't have been charged £4.50 for using my debit card to buy a sofa or a flight. What the hell is it to do with Lloyds TSB how I spend my money as long as I have enough funds in my account to pay for it?
I feel really ripped off. If I'd known I would have withdrawn the £3000 cash and bought my dollars over the counter.
Surely this can't be right or fair.
Advice please. :mad:
Does this seem right

Comments

  • maemaesmummy
    maemaesmummy Posts: 2,474 Forumite
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    check out Martin's travel money blog...they are listed there as charging a fee
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  • zppp
    zppp Posts: 2,476 Forumite
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    I have recently purchased travel money from Tesco & the Post Office, both online transactions, using my Lloyds TSB debit card. Lloyds have charged me £4.50 for each transaction!
    The customer service advisor said it is because I chose to shop around for the best exchange rate instead of buying their own travel money.
    I explained it was because Lloyds TSB exchange rate wasn't as good as the Post Office or Tesco and could she confirm that I had been penalised for shopping around. She said yes but it's in the terms and conditions.
    I then explained that the charge, which is called a 'cash handling fee' is neither transparent or clear on their website but she just repeated "well it is there". What cash have they handled that differs from any other purchase??
    I cannot find any terms which state that there will be a £4.50 charge for buying travel money from another source when you use your debit card.
    It's my money for gods sake. I'm sure I wouldn't have been charged £4.50 for using my debit card to buy a sofa or a flight. What the hell is it to do with Lloyds TSB how I spend my money as long as I have enough funds in my account to pay for it?
    I feel really ripped off. If I'd known I would have withdrawn the £3000 cash and bought my dollars over the counter.
    Surely this can't be right or fair.
    Advice please. :mad:
    Does this seem right

    In effect you have taken foreign cash and this attracts a Visa charge. It is correct and it is fair. The charge is levied by Visa, not by Lloyds, but it will be stated in your conditions.
    Best Regards

    zppp :)

  • callum9999
    callum9999 Posts: 4,393 Forumite
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    edited 17 August 2010 at 7:52PM
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    zppp wrote: »
    In effect you have taken foreign cash and this attracts a Visa charge. It is correct and it is fair. The charge is levied by Visa, not by Lloyds, but it will be stated in your conditions.


    It's a cash advance fee - is that definitely charged by visa? I'd have thought it would be charged by Lloyds TSB. I know Nationwide doesn't charge for it.

    OP - did the post office/Tesco not tell you about this charge? Everytime I've bought currency off a card I'm told there may be a cash advance fee (even though there never has been for me).

    EDIT: I just looked and they both do tell you in obvious places. A bit late now but you should take notice of things like that.
  • laneycakes
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    I've just had the same thing - but with barclays. 2 transactions, and two lots of £4.50.

    i have to agree with the OP...it does feel like getting ripped off...here's my rationell...

    I bought "a product" - yes in this case it was foreign money - but the vendor i bought it from charged me in sterling - so my bank hasnt had to do anything other than process a normal, uk based debit card transaction. I pay for plenty of services like this - gym sessions, insurances etc and don't get charged a fee - so why should they charge me for this? I could understand it if my bank had to convert the money or something - but as i said its a standard UK transaction in sterling. if they can get get away with this (especially when other cards dont charge) then whats to stop them from saying - actually if you're using your debit card to pay for insurance premiums, or for petrol we fancy nabbing more money of you so we'll charge you a fee?

    obviously i may not understand the working of the system having never worked in a bank, and if someone can give me a reasonable explanation why banks charge this fee then fine...but i'm already preparing for a battle with my bank over the phone tomorrow over this one...:mad:
  • callum9999
    callum9999 Posts: 4,393 Forumite
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    laneycakes wrote: »
    I've just had the same thing - but with barclays. 2 transactions, and two lots of £4.50.

    i have to agree with the OP...it does feel like getting ripped off...here's my rationell...

    I bought "a product" - yes in this case it was foreign money - but the vendor i bought it from charged me in sterling - so my bank hasnt had to do anything other than process a normal, uk based debit card transaction. I pay for plenty of services like this - gym sessions, insurances etc and don't get charged a fee - so why should they charge me for this? I could understand it if my bank had to convert the money or something - but as i said its a standard UK transaction in sterling. if they can get get away with this (especially when other cards dont charge) then whats to stop them from saying - actually if you're using your debit card to pay for insurance premiums, or for petrol we fancy nabbing more money of you so we'll charge you a fee?

    obviously i may not understand the working of the system having never worked in a bank, and if someone can give me a reasonable explanation why banks charge this fee then fine...but i'm already preparing for a battle with my bank over the phone tomorrow over this one...:mad:

    I'm not quite sure why they do it for debit cards, but the travel money websites do warn you, and it should be in your terms and conditions for the card. At the end of the day, its your fault for ignoring the warnings and t&cs. (I do agree it seems like a rip-off though).
  • wr1ght
    wr1ght Posts: 407 Forumite
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    some places such as crown currency and fairfx allow bank transfers so theres no fee
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