MSE News: Tesco moves to fairer foreign exchange credit card fees

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The supermarket giant will stop levying its own, expensive exchange rate, which can add close to 2% to costs ..."

Read the full story:
Tesco moves to fairer foreign exchange credit card fees

richardw

It is disappointing that they think that nobody would've noticed in the first place.

chattychappy

I think the credit for this change goes to Radio 4's Moneybox programme - this problem was featured a week ago Saturday, with this news as a follow-up this Saturday.

richardw

er dates back to early December http://www.guardian.co.uk/money/2010/dec/11/foreign-exchange-tesco?INTCMP=SRCH

chattychappy

richardw wrote: »

It is disappointing that they think that nobody would've noticed in the first place.

I think for a long time they didn't - that's how they got away with it. EDIT: I mean until after it was too late - ie after they'd made their foreign trip.

It then got highlighted here, but AFAIK MSE didn't take up the issue.

NightStar

So how do I seek a refund for the excess unfair charges since this was sneaked into my terms and conditions a year or two ago. I spent 2000 USD on this card in 2010 alone. Also surely the end of day rate of the date of the transaction should be used not the time and date it is processed. The rates are never listed anywhere online. I therefore will call them every day and go through every currency to every decimal point to obtain this information until ALL charges are more transparent and in plain english.

chattychappy

NightStar wrote: »

So how do I seek a refund for the excess unfair charges since this was sneaked into my terms and conditions a year or two ago. I spent 2000 USD on this card in 2010 alone. Also surely the end of day rate of the date of the transaction should be used not the time and date it is processed.

Let's say the "sneaky" loading was 2.75% (my estimate). Then your loss would be US$55, about £35.

I would write to Tesco and demand that they return £35. (Plus that for previous years if you can determine it - or you can require them to work it out.)

If (when) they refuse then go to the FOS and argue the unfairness point. I would mention that Tesco's displaying of "forex loading 2.75%" was misleading/a misrepresentation as it implies that that was the ONLY loading. The fact that they were using their own exchange rate was given in the T+Cs, but the fact that this was skewed in their favour and in was in effect a further lending was masked.

I disagree with your point that they should have to use the forex rate when you make the transaction rather than when it is processed. But you can argue that one too if you wish - but it's hard to see that that would make any overall net difference.

bigboyeast

As the person who originally broke this issue on this web site, in the press and who has spent the last 8 months fighting Tesco including 4 complaint letters using all the legal channels I could, I don't think we will get compensation. They have announced they will now use the MasterCard rate, but have not ammitted any fault. This is just changing the T&Cs for commercial reasons not legal ones.

Now we have to put pressure on RBS who originally thought this rip-off up and still use it on their Credit AND debit cards.

:rotfl:

chattychappy

I would always suggest people keeping statements or some other record. Who knows - in a few years' time, there may be some case successfully brought and people might regret not being able to lay their hands on the info.