Can I reclaim bank fees for an overseas transaction?

Albertatlock

I recently bought a guitar from the United States; a bargain, so it seemed. I accept that I pay customs duty and VAT. No problem with that. However, in making my payment through my bank, they charged me 2.95% on the cost of the transaction, plus a further, one off fee of £9.50. I accept the £9.50 as an admin fee, although I suspect no human was involved in that admin. What I do find difficult to understand is the 2.95% charge. It’s not as if someone is physically sitting in a room exchanging one currency for another in and out of separate boxes, having done a couple of calculations involving current exchange rates. It’s an algorithm. A line of code, that creates this figure using the latest data taken from various sources. What has my bank actually done to warrant charging me this 2.95%? Their idea of the exchange rate was way off what is generally considered the benchmark. I do realise that there are now cards and apps that don’t factor the exchange rates in, in the same way, but they still manage to make money on a transaction. Are banks just profiteering with this system? Most importantly, has anyone been able to successfully recover these costs? I would be grateful for any advice. Thank you.

TadleyBaggie

If it is in the T&C's you agreed to when opening the account, then almost certainly not.

born_again

Albertatlock said:

I recently bought a guitar from the United States; a bargain, so it seemed. I accept that I pay customs duty and VAT. No problem with that. However, in making my payment through my bank, they charged me 2.95% on the cost of the transaction, plus a further, one off fee of £9.50. I accept the £9.50 as an admin fee, although I suspect no human was involved in that admin. What I do find difficult to understand is the 2.95% charge. It’s not as if someone is physically sitting in a room exchanging one currency for another in and out of separate boxes, having done a couple of calculations involving current exchange rates. It’s an algorithm. A line of code, that creates this figure using the latest data taken from various sources. What has my bank actually done to warrant charging me this 2.95%? Their idea of the exchange rate was way off what is generally considered the benchmark. I do realise that there are now cards and apps that don’t factor the exchange rates in, in the same way, but they still manage to make money on a transaction. Are banks just profiteering with this system? Most importantly, has anyone been able to successfully recover these costs? I would be grateful for any advice. Thank you.

Standard charges on many cards for oversea's transactions set by Visa/Mastercard. Who also set the exchange rate. Which is on the date the retailer takes the funds, not when you make the transactions.


No you can not claim them back. 

https://www.visa.co.uk/support/consumer/travel-support/exchange-rate-calculator.html

https://www.mastercard.co.uk/en-gb/personal/get-support/convert-currency.html

Also have a look here for cheaper cards when o/s spending

https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

p00hsticks

How exactly did you pay ? Bank Transfer, Debit Card or Credit Card ?

Mark_d

2.95% is the standard currency conversion fee that most cards charge.  a handful charge 2.5% and a handful are fee free.
You should really read the T&C for your account