Visa Debit Card For Currency Purchase

ashleypride

Hypothetical wrote: »

Perhaps you would like to explain to someone who doesn't know what he's talking about at what point did the 'currency exchange' occur?

I called into First Choice, collected Dollars and Euros at an agreed price which was to be paid in Sterling and Visa made that Sterling payment on my behalf.

What extra work was incurred by Visa compared to, say, paying for a fuel purchase??

Stop over thinking this. Visas charging scheme is largely irrelevant for consumers,

But if you use a Visa card at any place that does one transaction for currency conversion (interchange), then your bank will be charged, and they may pass it on, that is all you need to know.
The Post Office get around this, by allowing you to take the money out in UK pounds, and then convert into foreign currency.

To be fair, everywhere I have been has advised me of a charge on Visa - and this charge has been going on for years and years. You probably weren't aware as Natwest only recently moved over to Visa from Switch. Should First Choice tell you, well I am sure they don't have to legally, but of course it would be nice if they did.

bobthedambuilder

Hypothetical wrote: »

Since (I am guessing) the vast majority of people are likely to be unaware that certain payments by debit card in the UK are chargeable, it would make total sense for First Choice to at least have an advisory notice on view at their exchange kiosks.

May I point you to quite a useful website which if you had read it would have told you this: www/moneysavingexpert.com/travel/cheap-travel-money. Quote: "Sadly, buying currency from a bureau de change in the UK on a credit or debit card isn’t always treated as a UK transaction. All credit cards and some debit cards charge an additional fee on top of what you pay the bureau de change. See a full list of cards that charge". Following the link tells you that Visa debit cards charge.

Or maybe it is just the forum on this website that interests you??:money:

Hypothetical_2

Some party, Visa, my bank or First Choice is charging for a service 'by the back door'.

It's a disgrace and is not transparent.

noh

Hypothetical wrote: »

Some party, Visa, my bank or First Choice is charging for a service 'by the back door'.

It's a disgrace and is not transparent.

The fee is clearly listed in Nat Wests T+Cs/fees and charges document page 26

Natwest charged you the fee as stated.
There is no question of a lack of transparency or charging via the "back door" as you put it.

The issue appears to be that you failed to read and understand the T+Cs and charges associated with your account.

Hypothetical_2

noh wrote: »

The fee is clearly listed in Nat Wests T+Cs/fees and charges document page 26

Natwest charged you the fee as stated.
There is no question of a lack of transparency or charging via the "back door" as you put it.

The issue appears to be that you failed to read and understand the T+Cs and charges associated with your account.

I accept that NATWEST charges for this service. It may only be of academic interest to most people....but please humour me....tell me why you think they charge for this particular service??

Fishingtime

Hypothetical wrote: »

Some party, Visa, my bank or First Choice is charging for a service 'by the back door'.

I work for Visa and the charges we charged you have bought us some lovely bubbly. :beer: :beer: :beer:

Let that be a lesson learnt

PS I don't work for visa lol

dzug1

Hypothetical wrote: »

I accept that NATWEST charges for this service. It may only be of academic interest to most people....but please humour me....tell me why you think they charge for this particular service??

I'd think (and I admit I'm speculating here) that it dates back to the days when Visa was just a credit card where the 'justification' (insofar as there has to be one at all) is more self evident. When Visa branched out into debit cards it didn't get removed - by most issuers anyway. So inertia basically

But that doesn't explain why it doesn't happen with Mastercard/equivalents.

There's also an explanation that you are effectively getting cash out from an ATM (yes I know it isn't literally - perhaps source is a better word) that is not defined as part of the free network

Toe-Jam

dzug1 wrote: »

I'd think (and I admit I'm speculating here) that it dates back to the days when Visa was just a credit card where the 'justification' (insofar as there has to be one at all) is more self evident. When Visa branched out into debit cards it didn't get removed - by most issuers anyway. So inertia basically

But that doesn't explain why it doesn't happen with Mastercard/equivalents.

There's also an explanation that you are effectively getting cash out from an ATM (yes I know it isn't literally - perhaps source is a better word) that is not defined as part of the free network

It also wouldn't explain why not all banks charge it. My visa debit doesn't, its with Coventry BS. I'm pretty sure there are a few others too that don't.

noh

Hypothetical wrote: »

I accept that NATWEST charges for this service. It may only be of academic interest to most people....but please humour me....tell me why you think they charge for this particular service??

The same fee is also charged if you withdraw sterling cash over the counter anywhere else other than Natwest.
They charge this fee to encourage customers to purchase their foreign currency from Natwest so potentially making a greater profit on the transaction.
They are a business therefore they look for ways to maximise their income.

roonaldo

Hypothetical wrote: »

Perhaps you would like to explain to someone who doesn't know what he's talking about at what point did the 'currency exchange' occur?

I called into First Choice, collected Dollars and Euros at an agreed price which was to be paid in Sterling and Visa made that Sterling payment on my behalf.

What extra work was incurred by Visa compared to, say, paying for a fuel purchase??

Currency exchange by card is nothing like withdrawing sterling from your local bank or using a card in uk to pay for goods. Its far more complicated.

The charge arises because Visa's interchange banking process charges your bank a handling fee for foreign currency purchases in the UK.

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