'RBS charged me a foreign purchase fee... even though I paid in pounds' - MSE News 21 December 2018 at 5:25PM in Budgeting & bank accounts 9 replies 1.4K views

Former_MSE_Naomi

RBS and Natwest customers who use their debit cards on flights and ferries have been warned to watch out for unexpected charges, after a Virgin Atlantic passenger was stunned to find a 'foreign purchase fee' added to transactions made in pounds...

Read the full story:
''RBS charged me a foreign purchase fee... even though I paid in pounds''

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eskbanker

Not sure a story that boils down to 'RBS adheres to its published Ts & Cs' really warrants the sensationalised tone - as the article concedes:

Their terms and conditions state this [foreign purchase fee] charge applies to "payments made outside the UK (for example, purchasing goods in a shop)", as well as any payments in a foreign currency.

Granted, RBS/NatWest are out of step with the others in taking this approach, but in the context of this charge being published as applying to transactions outside the UK, it seems a bit of a stretch for customers to expect that a transatlantic flight should be regarded as being within the UK....

Or perhaps MSE are advocating that people shouldn't be expected to read terms and conditions, as part of an ongoing dumbing-down agenda?

jonnygee2

Spencer Herbert, a MoneySaver from Kent, used his RBS debit card to spend £47.40 on crisps, chocolate and duty-free make-up

Does not sound like he's much of a moneysaver to me!

agrinnall

Alternative headline: Customer chooses to to use inappropriate card for spending then tries to blams somebody else for their own failings, and convinces MSE to agree with them

chattychappy

I met an American bloke on my travels who said US cards worked this way.

Bimbly

eskbanker wrote: »

Not sure a story that boils down to 'RBS adheres to its published Ts & Cs' really warrants the sensationalised tone
?

Well it was certainly news to me. I would not have expected to pay a fee on a transaction in pounds on a sterling bank account, so this is a good warning to others

dj1471

agrinnall wrote: »

Alternative headline: Customer chooses to to use inappropriate card for spending then tries to blams somebody else for their own failings, and convinces MSE to agree with them

I think that's a bit harsh. If I was departing a UK airport on a UK airline and paying in GBP I'd expect that transaction to be processed in the UK, not as an overseas transaction.

oldagetraveller

dj1471 wrote: »

I think that's a bit harsh. If I was departing a UK airport on a UK airline and paying in GBP I'd expect that transaction to be processed in the UK, not as an overseas transaction.

The purchase was made on a flight from Gatport Airwick though. It would have been the same had they been flying from any U.K. airport with Virgin.
The article specifically mentions ferries and flights.

"RBS and NatWest customers who use their debit cards on flights and ferries"
"on a flight from London Gatwick in November"
"Virgin Atlantic, had recorded his location as being in the USA"
Possibly Virgin need taking to task, not RBS?

eskbanker

dj1471 wrote: »

I think that's a bit harsh. If I was departing a UK airport on a UK airline and paying in GBP I'd expect that transaction to be processed in the UK, not as an overseas transaction.

The quoted RBS term refers to "payments made outside the UK" rather than anything to do with where they were processed - there's room for debate about exactly when one crosses the border when flying (i.e. passport control in the airport or physically above UK territory) but at some point on any international flight it's inevitable that passengers are outside the UK.

Having said that, it does seem to be Virgin's inaccurate reporting of the transaction as being in the USA that triggered this, I wonder what happens on inbound flights?

Also mildly curious about exactly why RBS refunded the charges and if this sets a useful precedent....

Kernow666

all this fuss over £2.10