Charged handling fee by bank for changing money in UK???

Rarchy

I recently changed money at a Travelex in London (using the MSE best deal finder, it was one I had to take a voucher to).

I was going to use my cc to pay but for some reason it wouldnt go through (even though there was enough balance) so I used my debit card. Looking at my statement I see it had recorded the transaction as a withdrawal (CASH WITHDRAWAL AT ATM TRAVELEX, LONDON WC1B) and then immediately afterwards charged me a withdrawal fee of £6.73, I guess similar to if I was using my card abroad (CASH WITHDRAWAL HANDLING CHARGE (% 1.50; MIN £1.99; MAX £20.00; FIX £0.00). I had no idea I would be charged a fee, as far as I was aware I was buying currency not withdrawing and its in the UK not abroad.

Maybe this is normal, I havent bought currency in this way (usually I am irresponsible and just use my debit card abroad) so not sure. I have a santander current account so maybe its common with those? (annoyingly the credit card I tried to use was a Zero card which has free international transactions so I assume I wouldnt have been charged!) Anyway just wanted to check if they are allowed to do this!!

Thanks for any advice

Rachel

richardw

You got cash, you didn't buy an item, hence the charge.

benjus

Did you use the Travel Money Maximiser? If so, you should have seen a big red arrow above the results, marked:

Check First Some cards add an extra charge when you buy currency in the UK!

This is a rather nasty trick, as many people aren't aware of it.

Although if you had a Santander Zero card, why didn't you just use that abroad? - you can only take advantage of its fee-free foreign transactions if you use the card abroad.

richardw

You aren't 'buying' currency, you are getting cash in another currency, the subtle difference means a charge.

benjus

richardw wrote: »

You aren't 'buying' currency, you are getting cash in another currency, the subtle difference means a charge,

Not sure what you're getting at.

Debit cards do not (in general) charge for cash withdrawals or purchases in GBP in the UK. If you were to buy the foreign currency by bank transfer or by withdrawing GBP cash and taking it in person you wouldn't be charged anything.

I can't see any logical reason for this charge. The fact that only some banks choose to impose it suggests that some banks agree with me.

richardw

benjus wrote: »

The fact that only some banks choose to impose it suggests that some banks agree with me.

Which bank is that then?

Inactive

richardw wrote: »

Which bank is that then?

I believe that HSBC do not impose this charge.

benjus

richardw wrote: »

Which bank is that then?

According to the Travel Money Maximiser on this site, the following banks/BSs do not impose this charge:

HSBC
Nationwide
Halifax
First Direct
Intelligent Finance
Coventry BS

Also, any bank that issues debit cards on the MasterCard/Maestro system will not impose this charge, as it is specific to Visa.