Amex Foreign Currency Warning!

jcocker

Bought some foreign currency from them a couple of days ago. I was given the option to pay using either a Visa Debit or credit card. To my surprise regardless of the choice I made, there didn't seem to be a difference in their charges - £0.0 for both. I was a little surprise (a UK retailer missing on an opportunity to make a few extra £'s? Surely not!), but as I already had my credit card in my hand I used it to pay.

Surprise, surprise. This morning I found a charge of £25 on my credit card - Amex entered the transaction as a cash withdrawal from my credit card...

I am not amused as there is no mention of this whatsoever on either of the 4 screens that you have to go through when purchasing foreign currency from them. I spoke to them on the phone earlier today and even the CS rep couldn't even find anywhere (probably hidden somewhere in the T&C...). She couldn't resolve it herself, but promised to escalate it with her boss on their return on Tues.

So be warned!

benjus

Almost all credit cards charge a fee if you use them to get cash. There are a few exceptions (e.g. Halifax Clarity) but the vast majority charge. It doesn't just apply to withdrawing Pounds at an ATM, it applies to any transaction that gives you cash or something that can be used like cash.

jcocker

benjus wrote: »

Almost all credit cards charge a fee if you use them to get cash. There are a few exceptions (e.g. Halifax Clarity) but the vast majority charge. It doesn't just apply to withdrawing Pounds at an ATM, it applies to any transaction that gives you cash or something that can be used like cash.

I am fully aware of that. However I believed that I wasn't paying Amex for cash, but for a service.

I strongly believe that they had enough opportunities to make their intentions clear, but chose not to to that.

Caz3121

It is not Amex that made the charge, it is your credit card company

within their "Help and Advice" they state

• How much will I be charged to buy Travellers Cheques and foreign currency?
• 
  We provide 0% commission on over 50 currencies and non-Sterling Travellers Cheques online.
  If you order Sterling Travellers Cheques, there will be a commission charge of 1.5% of the total amount of Sterling ordered, with a minimum charge of £3.00.
  We aim to provide Travellers Cheques and foreign currency at competitive rates. Details of costs are calculated and displayed before you complete your order. Please note that some credit or debit card issuers may charge you a cash advance fee - please check with your card provider regarding any charges which may apply.
  
  

jcocker

Caz3121 wrote: »

It is not Amex that made the charge, it is your credit card company

within their "Help and Advice" they state

• How much will I be charged to buy Travellers Cheques and foreign currency?
• 
  We provide 0% commission on over 50 currencies and non-Sterling Travellers Cheques online.
  If you order Sterling Travellers Cheques, there will be a commission charge of 1.5% of the total amount of Sterling ordered, with a minimum charge of £3.00.
  We aim to provide Travellers Cheques and foreign currency at competitive rates. Details of costs are calculated and displayed before you complete your order. Please note that some credit or debit card issuers may charge you a cash advance fee - please check with your card provider regarding any charges which may apply.

I also noticed it now. This however is exactly my point: it is hardly obvious considering how they state clearly that there are no charges involved with the transaction on each of the 4 pages you have to go through to complete it. No mention either when you choose to pay by credit card.

I am not suggesting that they hide this information, just that it should be much clearer, and not hidden in Q4 of the FAQ... This is what airlines do for example when you choose your preferred method of payment.

Again, I was under the impression that I was buying a service from them, not cash. If I wanted to withdraw foreign currency in cash using my credit card then I could have gone to an ATM on my arrival... What stops say, Amazon, treat transactions as cash ones? After all it will save them the 2%-5% charge from Visa/Amex/MasterCard. The answer is simple: they will have to make it clear to the customer prior to the purchase which will probably send them elsewhere.

benjus

jcocker wrote: »

I am fully aware of that. However I believed that I wasn't paying Amex for cash, but for a service.

You paid Amex for some foreign currency. Foreign currency is cash - seems pretty obvious to me. Why would you think it's a service?

zerog

If you use an Amex card, I believe it may be treated as a purchase.