Santander foreign transaction charges

PeacefulWaters

NFH wrote: »

Yes, but it is no different from transacting in the UK, except for a currency conversion which is not carried out by the card issuer. There is no rationale for card issuers to add such a fee; it is a fee for nothing.

There is no more justification for Santander to add such a fee for transacting in Ireland or France than for transacting in Wales or Scotland. National borders are irrelevant.

Higher fraud risk on overseas transactions for starters. Their own transactional payments to Visa or MasterCard.

NFH

PeacefulWaters wrote: »

Higher fraud risk on overseas transactions for starters. Their own transactional payments to Visa or MasterCard.

Although a high proportion of fraudulent transactions are not in GBP, it does not follow that non-fraudulent non-GBP transactions should be surcharged 2.75%. It's like saying that, because a large number of fraudulent transactions are cardholder-not-present transactions, then all CNP transactions (e.g. online purchases) should attract a surcharge. Both are non-sequiturs.

Merchants pay fees irrespective of whether the transaction currency or billing currency are GBP or not. Transaction costs are similar.

ManAtHome

loobiloo wrote: »

I may not have any grounds for complaint, but that doesn't mean I shouldn't complain. My statement simply shows £401, no mention of any visa rate

You certainly need to find out whether it was actually a non-Sterling transaction. Santander show their 'workings out' on euros taken from their own ATMs in Spain (one of mine - 'cash withdrawal at ATM <location> 80.00 EUR, RATE 0.83/GBP £66.46'), would expect the same for purchases.

It's possible that the hotel has done the old DCC (Dynamic Currency Conversion) trick and presented it to Santander as a Sterling transaction for £401. In this case Santander wouldn't have any details of the original euro transaction, and the hotel would be at fault for not giving you the choice of currencies.

Counter

loobiloo wrote: »

My statement simply shows £401, no mention of any visa rate

In which case I would suggest that the supplier has applied dynamic currency conversion (DCC) using their own rate and the conversion has nothing to do with Visa or Santander.

Counter

Counter wrote: »

In which case I would suggest that the supplier has applied dynamic currency conversion (DCC) using their own rate and the conversion has nothing to do with Visa or Santander.

As ManAtHome has already said whilst I was typing!

NFH

Counter wrote: »

In which case I would suggest that the supplier has applied dynamic currency conversion (DCC) using their own rate and the conversion has nothing to do with Visa or Santander.

Yes, this wouldn't surprise me. A Dublin hotel was the first place I ever experienced DCC and the subject of my very first post on MSE. What was the original transaction currency and amount? The statement will show this. If no mention is made of a EUR amount, then DCC looks like the culprit.

loobiloo

Oh I've not heard of DCC. The hotel's website gives the option to view the price in any currency. They have written me, after I complained to them first, and here is their reply

"I have just checked your booking there and it seems we have only charged €469.80 which would work out as £385.00. I will send your details to accounts to double checked the amount your card has been charged."

which was later confirmed by their accounts department:

"Accounts have just come back to me there and we have only charged €469.80 from you card,
The only thing I could suggest now is contacting your bank to see if they can give you some more information on this issue."

NFH

I will ask again - What was the original transaction currency and amount? Santander's statement will show this. If no mention is made of EUR 469.80, then it looks like DCC by the hotel's bank.

loobiloo

As I said, the original transaction was in euros, 469.80. My Santander statement simply shows £401.54. There is no mention of any euro exchange rate.

NFH

loobiloo wrote: »

As I said, the original transaction was in euros, 469.80. My Santander statement simply shows £401.54. There is no mention of any euro exchange rate.

If your Santander statement doesn't show the EUR amount, then the hotel's bank has used dynamic currency conversion. You should dispute the transaction with Santander on the basis that you authorised EUR 469.80, but the merchant charged more, i.e. GBP 401.54. Make it clear to Santander that the merchant changed the currency and amount from the currency and amount that you had authorised.