Tesco credit card - financial institution fee - Unusual?

adamr7747

Hi All,

Today I phoned Tesco Bank to ask why there was a £17 "cash transaction fee" on my statement. They said it's because they charge that fee for all transactions with a "financial institution". In this case it was payment for a survey relating to porting my mortgage. I was astonished at this & why they'd charge the fee for purchasing a service. I asked how I would be able to know in future if I'd get hit with the fee as I certainly don't know the name of every "financial institution" in the country. Their answer? "Phone us up before every transaction"!!! They also helpfully told me I should have paid more attention to some T&C change letter they sent me ages ago. They did offer a one-time-only "goodwill" refund (which involved a 30 minute wait on hold for them to process it, and I've not seen the actual money yet).

I intensely dislike the way they've approached this and want to move to another provider, but does anyone know if this is common practise? Do other credit card companies charge "cash transaction fees" for purchasing goods and services?

Thanks,
Adam

jay1804

Was the payment to a mortgage lender? For most payments like this it would show as financial institution so a cash transaction fee would apply. There's nothing you can really do, it's their card and terms.

Thrugelmir

adamr7747 said:

 I was astonished at this & why they'd charge the fee for purchasing a service.

You didn't purchase a service. You were reimbursing the lender for a cost that they incurred. The surveyor is working for the bank not you. 

adamr7747

Thrugelmir said:

adamr7747 said:

 I was astonished at this & why they'd charge the fee for purchasing a service.

You didn't purchase a service.

Hmm, I'm not convinced. Even if you argue I wasn't paying directly for the survey, then I was paying for the intermediary service.

Anyway I accept the "it's their rules, suck it up" argument, but does anyone know if this is typical? Do other credit card providers also charge cash fees for any transactions which aren't paying off debt or withdrawing cash?

Adam

Brie

I've never seen this with any bank account or card I've had.  Barclays, Barclaycard, Halifax, NatWest, RBS, Santander, MBNA or M&S card.

born_again

adamr7747 said:

Hi All,

Today I phoned Tesco Bank to ask why there was a £17 "cash transaction fee" on my statement. They said it's because they charge that fee for all transactions with a "financial institution". In this case it was payment for a survey relating to porting my mortgage. I was astonished at this & why they'd charge the fee for purchasing a service. I asked how I would be able to know in future if I'd get hit with the fee as I certainly don't know the name of every "financial institution" in the country. Their answer? "Phone us up before every transaction"!!! They also helpfully told me I should have paid more attention to some T&C change letter they sent me ages ago. They did offer a one-time-only "goodwill" refund (which involved a 30 minute wait on hold for them to process it, and I've not seen the actual money yet).

I intensely dislike the way they've approached this and want to move to another provider, but does anyone know if this is common practise? Do other credit card companies charge "cash transaction fees" for purchasing goods and services?

Thanks,
Adam

Credit Card systems are not live. It will update overnight & you will see it tomorrow.