MSE News: Banks to scrap some currency charges

brewerdave

TakeThis - I was fully aware of the Travelex "warning" about charges - this only became a problem when NatWest reissued their debit cards as Visa debit last year (previously were Maestro) - but I thought the abolition of these "charges" was what the original story in December was all about. But if the call centre is to be believed it ain't going to happen because the charges are predicated by Visa t & cs not Nat West!!!

Roger1

As I understand it, the banks previously charging for use of their debit cards when purchasing foreign currency in the UK will no longer charge those fees.

Using debit cards abroad will still incur charges from those banks.

Take a look at MSE's report for advice on cards which do NOT charge extra for foreign use.

The_Groat_Counter

Just looked at the NatWest website for their current account charges here:
http://www.natwest.com/personal/current-accounts/g6/rates-charges/current-charges.ashx

Under "Foreign transactions and debit card charges" it still says there's a "1.5% (minimum £2, maximum £4.50)" charge for "Purchase of foreign currency or travellers cheques using a Visa Debit card [...] in any other bank, travel agent, bureau de change or other outlet displaying the Visa logo" (there's "No charge" for buying foreign currency using a NatWest Visa Debit card at a NatWest branch).

So if something's changing, it hasn't changed yet, for NatWest at least.

Looking at the original MSE new story, there isn't a clear timetable for exactly when these changes are going to happen - however looking at the OFT's press release, it says the changes "will happen during 2012" (see the second footnote):
http://www.oft.gov.uk/news-and-updates/press/2011/138-11

So 'travellingbum' isn't right to say that these changes happen on 1 Jan 2012 - rather they'll happen sometime this year (and probably at different times for each bank concerned).

It's a good change in favour of the consumer, so well done OFT.

brewerdave

Just received my holiday currency - purchased online from Tesco using Visa debit card who had just about the best rate. At first it looked like I hadn't been charged by NatWest - but looking at the latest statement I have, £4.50 as per above post - actually queried again in local branch yesterday -this time I was told that the charges were "under review" !!!

Jim_Miles

I rang Nat West on 24 Apr to check that they indeed were no longer going to charge me if I used my debit card to buy Euros from Thomas Cook. I was assured that the charge would not be made. My statement shows that the next day I was charged £4.50. I rang NatWest on 24 May (when I looked at my statement) and complained. They accepted I had been told that no charge was due and said they will reimburse the charge but that the charge was still valid. The next item on my statement was buying stamps from the Post Office. No charge. What is the difference between buying stamps and buying Euros? The exchange risk and administrative costs were born by Thomas Cook so how does NatWest have any valid reason for charging for currency purchase bhut not stamp purchase?

Gloomendoom

Jim_Miles wrote: »

What is the difference between buying stamps and buying Euros?

One is currency, one isn't?


:huh:

catokelly

Jim_Miles wrote: »

I rang Nat West on 24 Apr to check that they indeed were no longer going to charge me if I used my debit card to buy Euros from Thomas Cook. I was assured that the charge would not be made. My statement shows that the next day I was charged £4.50. I rang NatWest on 24 May (when I looked at my statement) and complained. They accepted I had been told that no charge was due and said they will reimburse the charge but that the charge was still valid. The next item on my statement was buying stamps from the Post Office. No charge. What is the difference between buying stamps and buying Euros? The exchange risk and administrative costs were born by Thomas Cook so how does NatWest have any valid reason for charging for currency purchase bhut not stamp purchase?

I received a leaflet from Natwest a few weeks ago and it said the foreign currency purchase charge for buying currency in any bureau de change outlet will stop in early July 2012.

Technically speaking they treat currency purchases as a cash advance, that's their excuse (but doesnt make sense when you consider that other Visa Debit providers such as Halifax, Nationwide, HSBC & First Direct do not charge their customers this currency purchase fee).

zagfles

catokelly wrote: »

I received a leaflet from Natwest a few weeks ago and it said the foreign currency purchase charge for buying currency in any bureau de change outlet will stop in early July 2012.

Technically speaking they treat currency purchases as a cash advance, that's their excuse (but doesnt make sense when you consider that other Visa Debit providers such as Halifax, Nationwide, HSBC & First Direct do not charge their customers this currency purchase fee).

It's not a "cash advance" if you're using a debit card, it's your own money!

leedspete_2

so on natwest website it stills states that they will charge you for using a bureau de change but i haven't received a leaflet about then dropping the charges

catokelly

zagfles wrote: »

It's not a "cash advance" if you're using a debit card, it's your own money!

Yes it is our own money when using a debit card to purchase currency, we know that...

However, when you get your debit card receipt from a bureau de change it will say cash advance as opposed to sale. That's how the banks charge their debit card customers in the first place, as the transaction is not treated as a sale.

The banks who do charge customers extra then claim it is visa's charge for a cash advance (even though its a debit card). So when natwest moved from Maestro to Visa debit it started charging (yet many other banks do not charge customers on a debit card).

At the end of the day, we know it's just an excuse by the banks to make more money.