Nationwide Credit Card - Foreign Transactions

cdsheldon

I have just returned from a holiday in Spain and noticed a change in the way VISA deal with foreign currency purchases. This disadvantages anyone who follows Martin's advice and uses one of his recommended credit cards, such as the one issued by Nationwide. VISA now convert transactions in euros to pounds Sterling prior to purchase at a disadvantageous rate. This appears to be the VISA rate less 2.75% i.e. the rate charged by most banks for foreign currency transactions. There is a notice on the transaction slip stating "I accept that I have been offered a choice of currencies for payment and accept the conversion rate." However when I requested that I pay in Euros the trader didn't know what to do, the conversion to pounds appears automatically on the payment slip.

Clearly VISA are trying to cash in on the profits made by other banks for credit and debit card currency conversions. However this means that Nationwide customers will no longer benefit from excellent exchange rates.

Cash machine withdrawals using the Nationwide debit card are not affected and the full VISA currency conversion rate is applied.

karenj

Is it not the Flexaccount card Martin was referring to and not the credit card? I don't have a visa card with nationwide, but a nationwide flex account card and from the transactions I have made, they clearly are the best.

Reaper

This has been raised a few times. Here is the latest discussion.

Spain seems to be the main culprit and one bank in particular. It is not Visa fault. However please do kick up a fuss - ideally with the Spanish bank but failing that Visa. They shouldn't be allowed to get away with this scam.

Peter-Pan_5

I had the same thing happen to me in County Cork last week using my

Nationwide Credit card.

cdsheldon

Thanks Reaper for pointing out the other thread, I missed that when I searched the forum. I have already contacted Nationwide and asked if they would take this up with VISA. Just to confirm, it was the Nationwide credit card I was using, however I suspect the same would happen with the Nationwide debit (Flexaccount) card when making purchases.

The good news is you still get the full exchange rate when making cash machine withdrawals with the Nationwide debit card, and as most of you will know Nationwide charge no fee either.

Galstonian

I noticed it in Eire in a lot of places too but they seemed happy (if a little confused) to simply bill in Euros.

Reaper

cdsheldon wrote:

it was the Nationwide credit card I was using, however I suspect the same would happen with the Nationwide debit (Flexaccount) card when making purchases.

Yes it would. No matter whose card you used the same would happen as it is outside their control. Hopefully if people keep complaining before it becomes too widespread the foreign banks can be persuaded to stop.