Charged commission using Nationwide credit card

U2fan

Apologies if this subject has been posted before - I'm new to the site and couldn't see any similar topics being discussed.

For many years now, I've taken my Nationwide credit and debit cards on holiday with us so that we don't get charged commission. I've also drummed it into my husband's head that if he ever gets asked if we want to pay in UK pounds, he should say no - he wants to pay in the local currency.

However, we've just returned from a trip to Ireland and twice we were charged in UK pounds without being asked - this has let us to be charged over £10 in commission that we needn't have paid.

On our car hire Visa slip (in small writing at the bottom, which my husband missed) it says that "Cardholder has chosen to pay in GBP...", which is not true. It was never mentioned to him when he paid for the car. When we returned the car we complained but were told that there's nothing they can do; the credit card machines automatically charge in your home currency now.

They were a bit craftier in the other place we were charged in UK pounds - they said to him - "Look, you can also see how much you've paid in pounds." However, this was at the bottom of the slip under the euro amount, so it looked as though he'd paid by euro and the other amount was just an indication of how much he'd pay in sterling.

So, my questions are:

- Is this legal?
- Do I have any comeback if I write and complain to the two companies who did this, or should I have spotted this on the Visa slips we signed?
- Does the retailer get any profit out of doing this?
- And most importantly, how can we avoid it happening in the future? We're off the Cyprus next week and I don't want to pay more than I need to.

Many thanks in advance, U2fan

CLAPTON

No its not legal without your permission but in practice rather difficult to stop.
You can try phoning Nationwide and ask them to reverse the charge.. I know people who have been successful.

RDA

This scam was probably initiated by Visa to fleece us for even more commission and is probably within their rules and is also probably legal.

I would guess that the retailer is also part of the scam, otherwise there's no incentive for them to to carry it out. It's a bit like the 0870 con - BT take a cut along with the called party.

I would write to Nationwide and make it quite clear that you requested that the transactions be completed in local currency and that your wishes have not been complied with. Nationwide should then place the transactions in dispute and investigate your claim.

To avoid it happening again, read the transaction slips carefully and ensure that the total amount is expressed in local currency. Alternatively, take cash out of an ATM using your Nationwide debit card (if you have the funds available) and pay in hard currency.

Rafter

The scam is by the retailer and the companies who supply the credit card terminals (often different divisions of the credit card companies).

Rather than your card company taking the commission, by converting into £ at a bad exchange rate, the retailer and the terminal supplier get the money, not your bank.

In the case of nationwide customers you definately lose out, because Nationwide would not have charged you anything.

I suggest your first call should be the suppliers who charged you against your wishes, and if they don't comply initiate a 'chargeback' through nationwide for the disputed amount.

Good luck.

R.

johnmoney05

Nationwide DID warn ppls before....ask for the local currency settlement...I remember they did....

U2fan

Thanks for your responses guys - they were really interesting.

I emailed the car hire company and they replied today saying: "It states at the bottom of your open rental agreement that you will be charged in your local currency. This is standard procedure." Crafty, eh?! If this becomes more common practice, it won't be benefitial to have a Nationwide credit card.

Anyway, I'm going to contact Nationwide to see what they have to say and will let you know.

Thanks again, U2fan