Halifax "Foreign Cash Fee" in Gibraltar

joncombe

I have a Halifax Reward Current account. I used my debit card to withdraw cash 3 times whilst in Gibraltar. The currency of Gibraltar is £sterling, as in the UK, the only difference is they produce their own notes.

Yet I see that Halifax have charged me a £1.50 fee for each withdraw. If I click on the charge in the online banking it says

"A Non-Sterling Transaction Fee of £1.50 was taken from your account for using your debit card to withdraw cash while you were abroad."

Am I likely to get anywhere with them by disputing it? Can I dispute this? I cannot see how they can justify a "Non-Sterling Transaction Fee" for withdrawing sterling!

Now normally I change some cash before going abroad (for places that don't take cards), as well as using a credit card that does not charge a fee. However I prefer not to carry a lot of cash and Gibralter being British and using the £ I figured I didn't need to bring any extra cash from the UK first because I could withdraw it there for no fee, because it's the same currency.

londoninvestor

The T&C does permit this charge (the last para on the left hand column of page 44):
http://static.halifax.co.uk/assets/pdf/bankaccounts/pdf/bank-account-guide.pdf

Halifax wrote:

If you use your debit card to withdraw cash in a foreign currency, or to withdraw cash in pounds outside the UK...

However, it's perhaps worth trying a dispute based on this summary:
https://static.halifax.co.uk/assets/pdf/bankaccounts/reward-current-account-fee-information-document.pdf

This document states there's no fee for withdrawing pounds in the UK; it states that there is a fee for withdrawing foreign currency (both abroad and in the UK); but it makes no mention of withdrawing pounds outside the UK.

So you could try claiming the charge wasn't made sufficiently clear, because it isn't shown in the fee summary where you'd expect it, it's buried deep in the T&C.

Westin

joncombe wrote: »

I have a Halifax Reward Current account. I used my debit card to withdraw cash 3 times whilst in Gibraltar. The currency of Gibraltar is £sterling, as in the UK, the only difference is they produce their own notes.

Yet I see that Halifax have charged me a £1.50 fee for each withdraw. If I click on the charge in the online banking it says

"A Non-Sterling Transaction Fee of £1.50 was taken from your account for using your debit card to withdraw cash while you were abroad."

Am I likely to get anywhere with them by disputing it? Can I dispute this? I cannot see how they can justify a "Non-Sterling Transaction Fee" for withdrawing sterling!

Now normally I change some cash before going abroad (for places that don't take cards), as well as using a credit card that does not charge a fee. However I prefer not to carry a lot of cash and Gibralter being British and using the £ I figured I didn't need to bring any extra cash from the UK first because I could withdraw it there for no fee, because it's the same currency.

The Gibraltar Pound £ is actually the currency of Gibraltar. It is however pegged and exchangeable at the same rate to the British Pound £. Both currencies are widely accepted in shops over there. The Gibraltar Pound is however not legal tender in the U.K.

I suspect the ATM dispensed Gibraltar Pound notes to you and as such it is a “non-Sterling” transaction as implied by your bank.

The other possibility might be an ATM useage charge. I recall lots of Nat West ATM’s and a couple of Bank of Gibraltar ones but can’t recall any Halifax/Bank of Scotland branch, ATM or affiliate on the Rock.

I tend to use either GBP£ Sterling or U.K. credit cards to pay for items whilst in GIB. Whilst I have a Halifax Clarity card I have also used other credit cards there and have to admit not ever having had to pay overseas transaction fees. Items on credit cards being charged in GIB£.

Certainly worth challenging with Halifax. I just am not sure you should tell them that £Sterling is the currency in Gibraltar in your arguement, as it is not. Good luck.

stevenhp1987

I'd call Halifax up and ask.

I'd imagine, at the very least, they'd re-imburse it as a one-off.

Strange though, I used my Barclaycard in Gibraltar before and each transaction went through fine with no FX charges. Didn't withdraw cash though.

Different card issuer, different rules, but I'd query it.

joncombe

I spoke to Halifax and they have agreed to refund these charges after I pointed out the PDF about charges only mentioned foreign currencies and not pounds.

Westin wrote: »

Certainly worth challenging with Halifax. I just am not sure you should tell them that £Sterling is the currency in Gibraltar in your arguement, as it is not. Good luck.

The Gibraltar bank notes say "pounds sterling" on them. So I don't follow how the bank notes can say the currency is "pounds sterling" if it isn't?


E.G. here https://en.wikipedia.org/wiki/Gibraltar_pound#/media/File:%C2%A310_Gibraltar_Bank_Note_-_Reverse.jpg

zagfles

joncombe wrote: »

Now normally I change some cash before going abroad (for places that don't take cards), as well as using a credit card that does not charge a fee. However I prefer not to carry a lot of cash and Gibralter being British and using the £ I figured I didn't need to bring any extra cash from the UK first because I could withdraw it there for no fee, because it's the same currency.

Well that £1.50 is probably far less than you waste changing GBP to foreign currency, so if you don't mind wasting 5% or so changing cash why so bothered about £1.50?

Get a decent card which doesn't charge for ATM withdrawals anywhere abroad, whether in Gibraltar or anywhere else. Eg the Barclays travel card, or as you're with the Halifax, the Halifax Clarity (pay it off asap to avoid interest accruing).

jonesMUFCforever

The Gibraltan pound and Sterling are not the same currency - sterling is worth about 10p in the pound more.
You cannot exchange Gibraltar pounds in UK banks.
You were lucky to get the charges back.

londoninvestor

jonesMUFCforever wrote: »

sterling is worth about 10p in the pound more.

They fundamentally have the same value because Gibraltar law allows the holder to receive the note's face value in sterling:
https://www.gibraltarlaws.gov.gi/articles/2011-03o.pdf

Law_of_Gibraltar wrote:

Conversion between currency notes and sterling.
6. The Commissioner shall issue on demand to any person desiring to receive currency notes in Gibraltar, currency notes to the equivalent value (at the rate of one pound for one pound sterling) of sums in sterling lodged with the Commissioner by such person, and shall pay on demand to any person desiring to receive sterling the equivalent value so calculated of currency notes lodged with him by such person:

No dispute though that if you have a Gibraltar note in the UK it's going to be a pain to do anything with it.

eDicky

jonesMUFCforever wrote: »

The Gibraltan pound and Sterling are not the same currency - sterling is worth about 10p in the pound more.

This is not correct, The Gibraltar pound is sterling, the banknotes feature the word 'Sterling' and its value is identical to any other varieties of the pound sterling.

If and when Gibraltar banknotes are accepted by a mainland UK bank or payment machine, its value will not vary. Of course if you take them to an exchange bureau they will charge a margin to exchange them, and they will be worth less than English notes if you take them to another country as they will have a lower resale demand and value (in the same way as Scottish or NI notes).

cat.hug

I have been visiting Gibraltar for nearly ten years now since my daughter moved there with her job. I noticed that my HSBC flexi-saver account have been charging me 'non-sterling cash charge' for withdrawing sterling from ATM machines. I am also being charged non-sterling transaction fee for making purchases (in GBP sterling) in shops and cafes in Gibraltar. I am in the process of calculating these costs, but to give you an idea, between April-Jun of this year alone, I have paid 18.89 in non-sterling charges in Gib using my HSBC atm debit card. I have sent the bank secure messages and got no reply. Their live chat, based abroad, says its a currency convergant (yep really) charge. Twitter says its a conversion charge as its Gib Pound, although such a thing does not in fact exist; it is still GBP sterling, in the same way I believe, the scottish pund is still GBP sterling. The twitter reply to my tweet says the charge is the same as if I were using the Euro. The point is, I am NOT converting to euro, but withdrawing sterling. These charges have at times put my balance into the minus!! Any advice anyone? Going round in circles here and feel like Im getting the mushroom treatment! (kept in the dark and fed on s***) Thanks in advance, Cat

EveryWhere

cat.hug wrote: »

I have been visiting Gibraltar for nearly ten years now since my daughter moved there with her job. I noticed that my HSBC flexi-saver account have been charging me 'non-sterling cash charge' for withdrawing sterling from ATM machines. I am also being charged non-sterling transaction fee for making purchases (in GBP sterling) in shops and cafes in Gibraltar. I am in the process of calculating these costs, but to give you an idea, between April-Jun of this year alone, I have paid 18.89 in non-sterling charges in Gib using my HSBC atm debit card. I have sent the bank secure messages and got no reply. Their live chat, based abroad, says its a currency convergant (yep really) charge. Twitter says its a conversion charge as its Gib Pound, although such a thing does not in fact exist; it is still GBP sterling, in the same way I believe, the scottish pund is still GBP sterling. The twitter reply to my tweet says the charge is the same as if I were using the Euro. The point is, I am NOT converting to euro, but withdrawing sterling. These charges have at times put my balance into the minus!! Any advice anyone? Going round in circles here and feel like Im getting the mushroom treatment! (kept in the dark and fed on s***) Thanks in advance, Cat

Use accounts that do not charge?
https://www.metrobankonline.co.uk/bank-accounts/products/current-account/
https://www.metrobankonline.co.uk/bank-accounts/i-want-some-information-about/using-my-card-abroad/
https://www.starlingbank.com/travel/