Visa debit card charges

scouser3

I have just purchased foreign cuurrency online from Travelex. On checkout they warned me that card issuers may levy a Cash Advance fee, even using a debit card. Despite this message, I conyinued to checkout ,safe in the knowledge that on all previous purchases from Travelex( 6 in total) this would not affect me. WRONG!! Since my last purchase my current account card had been changed from Maestro to Visa Debit, as Natwest were now doing business with Visa. They enclosed new T&Cs which I failed to comprehend.I then completed my transaction and then checked my current account online 2 days later. It was at this point that i realisedthat an aditional charge had actually been levied. I subsequently rang Natwest who mconfirmed this charge was correct and waslevied by Visa not Natwest. I challenged this to no avail, hitting a brick wall with the quote from Natwes Helpline stating that Visa are bigger than we are and there is nothing they can do to change this. CORPORATE SPEAK for @ i am a small pawn and cant change anything. I asked how he would feel if he went to his local supermarket and had £100 of groceries, paid for them using his Visadebit card, in good faith, and then found he had actuall been charged 101.50. Would this be fair? |Is it ok for my bank to levy me for using MY cash? I want to go on, but if this is not alread boring, then to carry on could mean falling asleep.

Your comments wud be much appreciated.
Brian

fozmcfc

Seen the issue discussed before several times on the forums and yes it is true basically there is a charge levied for using a Visa Debit card. IIRC it is Visa who levy the charge as well.

What can you do, not a lot, except change to a provider who still issues Maestro cards, although most now only offer Visa debit.

I've found more travel related companies are now charging for using any cards nowadays, whereas before it was just on Credit Cards.

anna42hmr

Hi

I understand your frustration, but to be honest their is not much you can do. The website warned you before the purchase you may be charged a fee and you still went ahead, and the bank sent you the new terms and conditions which you confirm in your post you received.

Unfortunatly maestro cards seem to be gradually phased out and as far as i am aware all banks are passing the visa charge on to customers. So customers are going to either have to pay this charge or no longer order currancy online, and draw cash out and buy from a travel exchange provider in a shop so you physically hand the money over (wether its from the post office, marks and spencers, travel agents or banks etc)

I know their was talk that some banks dont charge the fee if you order with them directly (ie if you order from natwest and pay using natwest) but am not sure if this has definatly been bought in and which banks.

EDIT

here you go found it on Natwest site, so looks like you are charged 1.5% If you use you debit card to buy elsewhere, but fee is waived if you buy from natwest:

Debit Card Charges (foreign currency or sterling)




Transaction typeChargesTransactions in the UK (this includes the Channel Islands, Isle of Man and Gibraltar)Cash withdrawals in sterling:

• at a UK cash machine (ATM)
• in any NatWest branch - NO charge
• using your Visa Debit card in any other bank, travel agent, bureau de change or other outlet displaying the Visa logo

1.5% (minimum £2, maximum £4.50)
Purchase of foreign currency or travellers' cheques using a Visa Debit card:**

• in any NatWest branch No charge
• in any other bank, travel agent, bureau de change or other outlet displaying the Visa logo : 1.5% (minimum £2, maximum £4.50)

Foreign currency withdrawal from cash machines2% (minimum £2, maximum £5)Transactions abroadCash withdrawals

Purchase of currency or travellers' cheques using a Visa Debit card
Point of sale transactions
2% (minimum £2, maximum £5)
2% (minimum £2, maximum £5)
£1.25 per transaction


Where a charge in the table above is stated as a percentage, this is a percentage of the sterling transaction amount.
*We will not charge you for using your card at an ATM in the UK but other companies may charge a fee. You will be advised on screen about any charges before you withdraw cash.
**Standard commission rates apply

rb10

It is Natwest who choose to apply the fee to you.

Some other banks do not charge you for purchasing foreign currency on your Visa Debit card (Halifax is one example).

chattychappy

There was a thread recently where the OP was using cheques to pay off his statements. People were quick to criticise this as an outdated practice and extolling the virtues of other payment methods.

Well, at least with a cheque, you know how much you're writing the cheque for. Debit cards were introduced as an easier alternative - but now it seems charges are creeping in for certain types of transaction. What a pity.

I suppose the only alternative is to get cash out and then use cash to buy forex. Cash still talks.

opinions4u

scouser3 wrote: »

On checkout they warned me that card issuers may levy a Cash Advance fee, even using a debit card. Despite this message, I conyinued to checkout

Interesting decision. Well done to Travelex for flagging it.

Since my last purchase my current account card had been changed from Maestro to Visa Debit, as Natwest were now doing business with Visa. They enclosed new T&Cs which I failed to comprehend.

While some would view a change to terms and conditions as junk mail, taking time to read the "headlines" in the leaflets is important.

I subsequently rang Natwest who mconfirmed this charge was correct and waslevied by Visa not Natwest. I challenged this to no avail, hitting a brick wall with the quote from Natwes Helpline stating that Visa are bigger than we are and there is nothing they can do to change this. CORPORATE SPEAK for @ i am a small pawn and cant change anything.

This is utter nonsense. Whatever charging structure is in place between Visa and Nat West is not relevant. It is Nat West who decide what to charge the customer for this sort of transaction. They could choose to apply a fee, as they do. They could treat it as a normal transaction (which many others do). They could incentivise such transactions and pay cashback on them if they wanted to (M&S Credit Card do, I think).

The least they could do is say "It's our charge to you. Tough, we're not refunding it" rather than blaming Visa. Nat West have assessed the costs of allowing this transaction and the potential profit they could make and chosen to implement a charge. Visa do not insist that they have such a charge.

Perhaps reading Martin's article on foreign currency and overseas transactions would help you save money in future.

http://www.moneysavingexpert.com/travel/cheap-travel-money

brewerdave

Exactly the same thing happened to me earlier this year - I went into local Natwest branch,and,very politely, asked for an explanation of charges as it was the first time it had happened.
After a discussion, the branch supervisor agreed to refund the charges on this occasion, as a goodwill gesture.Don't know if its now too late to try that approach??