NatWest applies "Foreign Purchase Fee" to GBP transactions

Reason077

NatWest's "Foreign Purchase Fee" is a 2.75% margin on foreign currency conversions (reasonable) - with a £1.00 minimum charge (not so reasonable).

Until now, I'd assumed that this fee was applied to purchases denominated in a foreign currency. I've not been charged it when shopping online at foreign websites and paying for purchases in GBP.

However, last week in France and Switzerland, I was running low on local currency and ended up having to use my debit card for a few small purchases.

Retailers often offer the option to convert your purchase into GBP when paying. This conversion is made at a "not very attractive" rate, but for small transactions (under £40 or so) it still beats NatWest's hefty £1.00 minimum charge.

However, it turns out NatWest still charge their foreign purchase fees even when the retailer has already converted the transaction to GBP. This means you've paid for currency conversion twice, and choosing the retailers "pay in GBP" option is always a trap with NatWest cards.

So, what justification does NatWest have to charge foreign purchase fees - intended as commission on foreign currency transactions - on purchases denominated in GBP?! How does this cost them more to handle than any other GBP transaction?

ampersand

This has always been so, but I like and know my Natwest peeps[2 particular Branches] and have had this 'goodwill'ed back every time, twice with 3-fig extras.

Go in and speak to them, if you feel a good personal link exists, which is not the same as blindly failing to examine, check on, or take interest in, such things.

This is also good for that back-up:
http://www.nandp.co.uk/current-account/gold-classic-current-account/

noh

Their website

http://personal.natwest.com/personal/life-moments/travel/spending-abroad.html

says

Paying in Sterling abroad

When you use your card abroad, you can sometimes pay in sterling rather than local currency. Paying this way is often more expensive than paying in the local currency as there could be a local charge. If you do pay in sterling, then the Non Sterling Transaction Fee on both NatWest debit and credit cards will not apply.

Which indicates that you should not have been charged.