Post Office Cash Card Warning

NotVeryTechie

Hi there all

I don't know if I am the only silly person that has been caught out by this, but I wanted to warn others in case someone else is silly too!

I have a Post Office Travel Money card with Euros loaded on it. When I got the card, the current exchange rate at the time was applied to the Pounds I bought the currency with.

I have just been on a holiday to Spain and needed to draw some cash from a cash machine there. The first machine asked if I wanted to apply the current exchange rate - yes or no. I didn't know which to choose and clicked yes. I think it was not in my favour, but I am not actually completely sure.

The next time I said no, because I honestly don't know if it is good or not. I called the customer service department on my return and they couldn't really work it out either. All they kept saying was it is in their terms and conditions. Not very helpful!

So I think you must say 'No' so that the cash machine applies the card rate, but the machines don't all ask the question in the same way and some don't ask at all.

And the charges for drawing cash on that card are very high. So I think it is still better to take cash, even though this is so much safer.

Anyway, does anyone with a banking background actually understand how this works and how it affects the amount you get and what you get charged? It is very confusing.

:huh:

Kernow666

this happens on various cards and depends on what bank you use , i had it on my halifasx clarity card in both Australia & Netherlands

Voyager2002

This is the dreaded "dynamic currency conversion". It has been explained in detail on this site.

Doshwaster

If you have loaded your card with Euros then the exchange is done when the money is added. When in Euroland, you need to ensure that your card is always charged in Euros so no other exchange is done.

If a Euro denominated card is charged in pounds then then you will be charged for another conversion.

You have to be careful as the wording on ATMs is sometimes very confusing - and perhaps deliberately misleading.

NotVeryTechie

That was my point @Doshwaster. I tried to unravel the language of the question asked on the cash machine and didn't get it right, but I also couldn't quite understand which way round (which you have now explained in a very understandable way, thank you).

I couldn't work out why they would even ask because it is a Euro card, loaded with Euros and I was withdrawing Euros.

Anyway, live and learn. I was just astounded that even the customer care guys at the PO couldn't explain it. And, as you say, the wording on the cash machines abroad does not help either.

eDicky

NotVeryTechie wrote: »

I couldn't work out why they would even ask because it is a Euro card, loaded with Euros and I was withdrawing Euros.

I also fail to understand why a euro denominated card used in a eurozone ATM provokes any mention of exchange. Is it a deliberate con by the bank when their machine detects a foreign card, or an aberration in the way the Post Office card operates? I have never come across such a thing.

NotVeryTechie

eDicky wrote: »

I also fail to understand why a euro denominated card used in a eurozone ATM provokes any mention of exchange. Is it a deliberate con by the bank when their machine detects a foreign card, or an aberration in the way the Post Office card operates? I have never come across such a thing.

It did feel like a con to me, mostly because the language used on the cash machine made it difficult to work out whether you should press yes or no.

eDicky

NotVeryTechie wrote: »

It did feel like a con to me, mostly because the language used on the cash machine made it difficult to work out whether you should press yes or no.

In general the rule is to select 'no', 'without conversion', etc. But that is when a change of currency is involved, you should not have been faced with any such choice. I would immediately cancel and retrieve my card in case some double exchange is being foisted on me, with or without DCC.

Do you know which bank it was? Can you study your card account and calculate additional charges?Perhaps you should call the Post Office CS again and try to get somebody sensible on the line, explain what happened and demand to know why you were confronted with a conversion choice when drawing euros with a euro card. The Post Office travel card is certainly not one of the best choices, they should explain or investigate this to avoid any additional 'bad press'.

NotVeryTechie

eDicky wrote: »

In general the rule is to select 'no', 'without conversion', etc. But that is when a change of currency is involved, you should not have been faced with any such choice. I would immediately cancel and retrieve my card in case some double exchange is being foisted on me, with or without DCC.

Do you know which bank it was? Can you study your card account and calculate additional charges?Perhaps you should call the Post Office CS again and try to get somebody sensible on the line, explain what happened and demand to know why you were confronted with a conversion choice when drawing euros with a euro card. The Post Office travel card is certainly not one of the best choices, they should explain or investigate this to avoid any additional 'bad press'.

Mmm, they do now explain it more fully. Their latest literature actually has a note about this in the pack. When I got the card it was not explained to me and I never had this issue before. So they now say that it is in their T&Cs. I used different banks and each one has a different way of phrasing the question. That is what made it confusing. I guess I should have thought about it a bit more deeply as well. As I said, live and learn!