Tesco charging for 2.75% for ecommerce purchases

connect123

I've only just noticed Tesco Bank has been charging me a 2.75% fee whenever I've made an online ecommerce purchase where the payment has been in dollars.

For example, I'm a graphic designer and regularly purchase web hosting on behalf of my clients. The site I purchase from is US based, so the purchase goes through as $. I didn't think anything of it at the time, given I use the same card to purchase Netflix, Prime etc without issue.

Yes I know, I should have spotted it! But in my defence:

1. Under the Fee's / Foreign Usage section on their statements, there's absolutely no mention of charges in regard to internet + ecommerce use. I think this should be clearer.
   
   
2. My Tesco credit card statements lists my charges as a generic 'Fee', with no explanation or breakdown as to what that fee is, or how/why I'm being charged. I've no way of linking that miscellaneous fee with an ecommerce charge unless I read through the whole statement to find the individual payment, whereby it lists it as a foreign transaction.
   
   
3. When paying online via my card, no mention is made of the charge during the payment process, despite having to verify the payment in the Tesco Bank app during payment.

In regard to point 2 above, when I called Tesco to question the fee, even they didn't know what it was for until they investigated back through past statements.

Like I said, it's my fault for not realising an online purchase is treated the same as making a purchase on holiday, I just feel they could make it a little clearer.

la531983

The charge isnt being made because its online. Surely the charge is being made because its not in GBP, and the same would apply had you wafted your card at a card machine for a coffee in New York.

DullGreyGuy

It's a foreign currency charges nothing to do with it being online. You'd have the same fee applied if you were to go on holiday and use the same card to pay for physical goods in person. 

Look on this site, there are a variety of debit and credit cards listed that dont charge a foreign currency fee... they'll call them "travel cards" but thats because thats when most pay in foreign currency and they apply equally to remote purchases. 

la531983

Also the place you are buying from will have no knowledge of the charges the card issuer will levy, if any, thats your responsibility to know and not theirs.

CliveOfIndia

It's clearly stated on their T&Cs that "With each transaction in a foreign currency you’ll be charged a foreign exchange fee of 2.75% of the cost of your purchase.".  This is common to the majority of credit cards, with the exception of the so-called "travel cards" (it would probably be worthwhile getting one if you make a lot of non-sterling purchases).

As above, it doesn't matter where you are physically located - if the transaction is in a currency other than GBP then you'll be charged an FX fee.

k12479

connect123 said:

...regularly purchase web hosting on behalf of my clients.

Also in the T&C's of your account, and similar for most credit cards, is this:

"You and any additional cardholder must not use your account for business or illegal purposes"