Buying currency with a debit card

sparcells25

I recently wanted to purchase £1000 in euros. I searched for the best rate, completed the online application and went ahead using my Coop bank visa debit card to pay. The transaction went head with no problems until I noticed on the current account statement a VISA charge of £20.02. I rang the bank to query this as the money was available in our current account at the time and was told this was a standard charge made by VISA to cover the cost of the exchange and it is within the terms and conditions of my debit card. Is this usual?

noh

It's certainly common.
It is not a Visa fee though it is your bank making the charge
Not all banks charge a fee when a debit card is used but looks like yours does.

Tixy

Quite a few debit cards do charge when buying foreign currency in the UK. Though some do not.
There is a list here - http://www.moneysavingexpert.com/travel/cheap-travel-money

Under the section
Getting the cheapest foreign cash

and expanding the link "Beware when paying on credit OR debit cards!"

InsideInsurance

Most the currency places in London have signs up warning you about it too.

Do find it a little crazy that I queue up in branch taking up their tellers time to withdraw the money in cash and its free where as using the card, which the bank gets paid for, they then also levy a charge on me.

JohalaReewi

It is fairly common but crazy. If you use your debit card to withdraw cash (GBP) from your account then use the cash for the FX transaction, there is no fee. If you use your debit card to buy the FX even though you are charging GBP to the card, there is usually a fee :huh::huh:

Ben8282

sparcells25 wrote: »

I recently wanted to purchase £1000 in euros. I searched for the best rate, completed the online application and went ahead using my Coop bank visa debit card to pay. The transaction went head with no problems until I noticed on the current account statement a VISA charge of £20.02. I rang the bank to query this as the money was available in our current account at the time and was told this was a standard charge made by VISA to cover the cost of the exchange and it is within the terms and conditions of my debit card. Is this usual?

I find this to be rather strange. The OP has undertaken a transaction in the UK in £. The currency exchange will be undertaken by the bureau de change NOT visa. I do not understand why visa are making a charge to cover the cost of the exchange when they are not doing the exchange.

dazza.mk

Ben8282 wrote: »

I find this to be rather strange. The OP has undertaken a transaction in the UK in £. The currency exchange will be undertaken by the bureau de change NOT visa. I do not understand why visa are making a charge to cover the cost of the exchange when they are not doing the exchange.

The charge doesn't relate to the exchange but taking a cash advance on the VISA network.

Although charges are being phased out over this year...

http://www.dailymail.co.uk/travel/article-2076463/OFT-orders-banks-scrap-debit-card-charges-buying-foreign-currency.html

smalltownman

sparcells25 wrote: »

I recently wanted to purchase £1000 in euros. I searched for the best rate, completed the online application and went ahead using my Coop bank visa debit card to pay. The transaction went head with no problems until I noticed on the current account statement a VISA charge of £20.02. I rang the bank to query this as the money was available in our current account at the time and was told this was a standard charge made by VISA to cover the cost of the exchange and it is within the terms and conditions of my debit card. Is this usual?

I have bought Euros many times using my First Direct Visa Debit card and I have never been charged. The only requirement is (now), that I have to show ID if paying by card. Otherwise I draw cash on the card and pay for the Euros.

Ben8282

This is actually quite understandable. £1000 is a large cashback! I assume this is the same as using one of those private ATM's which charge a fee to use them.

tomruth78

You have my sympathy. I just purchased 500euros with my barclays debit card on Sainsburys online and not once did it mention a charge of £4.50 by VISA for the transaction. Next time I shall be going to the fx in a store and not online. What I thought was a good rate has now been blown out of the water by this charge.

YorkshireBoy

tomruth78 wrote: »

I just purchased 500euros with my barclays debit card on Sainsburys online and not once did it mention a charge of £4.50 by VISA for the transaction.

Maybe next time read the T&Cs?...

If you choose to pay by Visa...debit card, your card issuer may apply a cash advance fee which will be shown separately on your credit or debit card/bank statement.

http://www.travelex.co.uk/sainsburys/terms-and-conditions.aspx

...which should have prompted you to check your Barclays T&Cs, where you'd have seen...

Obtaining foreign currency or travellers cheques anywhere other than a Barclays branch or via Barclays Travel Line

2% (minimum £1.50, maximum £4.50)

http://www.barclays.co.uk/Helpsupport/Debitcardratesandcharges/P1242557964236

The good thing is you only get caught out once with this!