Nationwide charge for GBP bureau de change debit card transaction

Susieloo

Last month I bought some USD from the bureau de change in Debenhams in Milton Keynes and paid in GBP using my Nationwide debit card, as confirmed by the store receipt. I used my debit card based on Martin's recommendations to avoid any charges which was confirmed as being so by the bureau de change lady but lo and behold I've been charged a £1 for the transaction even though the corresponding transaction is obviously in GBP in a UK store. I thought banks were supposed to have stopped charging fees for debit card transactions as a result of OFT pressure in 2012. Nationwide have received and processed this as a GBP transaction so I cant understand how they can charge it as a currency transaction. I know its only £1 but for nationwide it seems like easy money.

benjus

Sounds wrong to me - in any case, IIRC Nationwide was never one of the card issuers that charged for buying foreign currency in the UK. Have you contacted them to query/dispute it?

eDicky

What is the exact description of the charge on your statement?

The Nationwide FlexAccount and FlexDirect debit card has a £1 foreign ATM charge (the Flex Plus debit card does not). Which is yours?

The only possibility I can see is that Nationwide are treating your USD purchase as a foreign cash withdrawal, which is worth disputing...

Susieloo

Its showing as a 'Non-Sterling Cash Fee'.
I've sent them a message last night but based on feedback here, I've called them today. Its taken a 30 minute call and being put on hold twice to be told it needs to be checked out by the VISA disputes team before they give me my £1 back. It might take up to 10 days
The thing is, my husband was also charged the same fee on a similar transaction at the Oxford Street Debenhams on a separate flexaccount account. So it isn't a one off incident. Nationwide must be making quite a bit of profit on this one given how many people just shrug at the £1 charge.
I'm really peeved that they make it so difficult to complain about this. However, my ideal outcome would be to know that they have stopped this charging, not just that I get my £1 as a 'goodwill' gesture.

PeacefulWaters

ationwide must be making quite a bit of profit on this

With the greatest respect, it will be a piddling little amount of profit in the great scheme of things.

Doesn't make it right though.

EssexExile

Be it large or piddling, the profit is what they are in business for.

callum9999

EssexExile wrote: »

Be it large or piddling, the profit is what they are in business for.

I think their point was it's not an evil scheme to try and make extra profit as the post implied (and so many people assume whenever a bank/large company ever makes a mistake!).

It's of course valid to complain that it's poor customer service though. They should have looked up the rules, apologised and refunded the charge then done whatever it is they need to do with the "Visa disputes team" on their own time.

alanrowell

This is common among many banks / Building Societies. I've seen signs at BdC saying there may be a charge if you use debit cards to purchase currency. I've also seen people being told to go to an ATM and get cash to pay for their ForEx

benjus

alanrowell wrote: »

This is common among many banks / Building Societies. I've seen signs at BdC saying there may be a charge if you use debit cards to purchase currency. I've also seen people being told to go to an ATM and get cash to pay for their ForEx

It used to be common, but disappeared back in 2012: http://www.moneysavingexpert.com/news/cards/2012/06/banks-begin-to-axe-debit-card-bureau-de-change-fees

In any case, I don't think Nationwide ever imposed this charge.

What has happened here looks like a mistake to me.

Kernow666

I work in FX and never had a debit card charged a fee since the got rid of the fee , take nationwide ones all the time and no one has ever come back and said anything

zagfles

Guess it's something to do with the way Debenhams process the transaction to make it look like a non-Link ATM withdrawal. See http://www.nationwide.co.uk/support/travel/fees-charges#xtab:fees which shows that foreign currency non-Link ATM withdrawals in the UK are charged at £1. But over the counter is free.