Cash Advance Fee on Debit Card

wyebird

:mad: Bought some foreign currency in the UK with my debit card and have been charged a cash advance fee. Complained and was directed to the small print in the T&C.

Is this common place with all banks, or Just a CO-OP thing? Not a massive amount of money, but has made me cross, I know they charge to use card abroad, but why for a stirling transaction in the UK???

YorkshireBoy

wyebird wrote: »

Is this common place with all banks...

It's very common for Visa Debit cards (although I believe Nationwide Visa Debit don't charge).

My Yorkshire Bank Maestro card doesn't charge a fee. Not sure if other Maestro card issuers (NatWest etc) do though.

Trying_to_be_good

It is common now - again, I'm with Nationwide and checked last time I wanted to use my debit card to get currency at M&S, Nationwide don't charge a fee. Lots of people now resort to going to the cashpoint to get sterling to exchange - the paper-free society!

skintchick

I've had this with a credit card, but not a Lloyds TSB debit card. What a cheek! Do they charge you if you get cash out? How come you get charged for taking out cash with a debit card?

Omega_Point

wyebird wrote: »

:mad: Bought some foreign currency... a stirling transaction in the UK???

Foreign Currency isn't treated as a stirling transaction by your bank, so is charged the same as buying somthing or withdrawing cash in the currency you bought. (well it was by Lloyds last time i saw the T&C's)

gt94sss2

wyebird wrote: »

:mad: Bought some foreign currency in the UK with my debit card and have been charged a cash advance fee. Complained and was directed to the small print in the T&C.

Is this common place with all banks, or Just a CO-OP thing?

Its very common with VISA branded debit cards - though there are some exceptions.

Mastercard or Maestro branded debit cards don't charge for this though afaik

Regards
Sunil

Biggles

It's nothing to do with it being foreign currency, it's because the Co-op make a cash transaction charge for a cash withdrawal that isn't from their own branches or their LINK ATMs http://www.co-operativebank.co.uk/bank/pdf/Current_account_charges.pdf. Most banks don't make any charge for cash withdrawal on a debit card within the UK (or for foreign currency as long as you pay in GBP).

So, yes, to answer your original question, it's a Co-op thing.

System

It's a VISA cash advance fee.All banks get charged, and pass this along along with a % ontop.

Nationwide absorb this charge, the other banks/building societies don't.

The only way to avoid it is to pay with cash/cheque or use a Maestro card.

Biggles

Heng_Leng wrote: »

It's a VISA cash advance fee.All banks get charged, and pass this along along with a % ontop.

Nationwide absorb this charge, the other banks/building societies don't.

No, you're getting mixed up with the foreign exchange loading. That doesn't come into this transaction, as the bureau de change has made the conversion (and made a fat profit) already.

There's not normally a cash advance fee for a Visa debit card, it's usually the best way to buy foreign currency, certainly better than using a credit card, when you WILL pay a cash advance fee (even with Nationwide).

That's if you really have to buy foreign currency; it would be cheaper to use your credit card, and many debit cards, when you get abroad, and far cheaper if they are Nationwide cards.

virgin_moneysaver

I noticed on the BMI baby site that they now charge 1% for debit cards which used to be free, & 2% for credit cards - the only card exempt from fees was visa electron

System

I'm not.They are two different charges.

One is for a cash advance fee.
One is for conversion from another currency.

If a Visa Debit holder uses an ATM in the UK which is not part of the LINK network, or draws GBP over the counter of another bank they will get charged the same fee.

If they do either of the above not in GBP they will get charged this AND the loading.

The former is usually 1.5%, and the later is usually 2.75%

All the major banks ,who issue Visa Debit cards, will charge for UK Bureaux de Change card transactions bar Nationwide. Maestro card issuers don't.

Biggles wrote: »

No, you're getting mixed up with the foreign exchange loading. That doesn't come into this transaction, as the bureau de change has made the conversion (and made a fat profit) already.

There's not normally a cash advance fee for a Visa debit card, it's usually the best way to buy foreign currency, certainly better than using a credit card, when you WILL pay a cash advance fee (even with Nationwide).

That's if you really have to buy foreign currency; it would be cheaper to use your credit card, and many debit cards, when you get abroad, and far cheaper if they are Nationwide cards.