Nationwide declined £175 switch payment

Ynnad

Hiya all, I recently switched my current account to Nationwide and fulfilled as I thought all of the switch requirements. Deposit seven times required sum set up direct debits and used debit card a few times on line. They have now said I don't qualify as the debit card was used on line using the card reader they insisted I use. The reason is, in their opinion using the card this way was a money transfer which is excluded. Their conditions state you must use the debit card once and mentions no definition of what is a money transfer. Call me old fashioned but isn't any payment from my account a transfer to the payee. Apparently if I had spent £1 chip and pin at the shops all would have been ok. I have complained to Nationwide with no resolve and am considering the Financial Ombudsman. Anyone had similar experience and if so can advise.

Thanks

Shakin_Steve

It all depends on the exact wording of the T&C's, which I haven't read. It may seem a bit picky of them but, if they clearly state the steps you must follow and you don't follow them, then I can see the ombudsman siding with them.

mta999

Do you mean you paid for something online using your debit card ? ie £x was debited your current account?

Or do you mean you just 'used' your debit card on the card reader to authorise s transaction?

la531983

Use of "card reader" suggests the OP used their old fashioned device merely to transfer money elsewhere.

OP, did you actually BUY something using the debit card? You are on a hiding to nothing if you didn't.

"Pay in at least £1,000 and make 1 debit card payment within 31 days of account opening or applying to switch into an existing account."

Above is from their website.

Moving money elsewhere within online banking is not a "debit card payment" and is as clear as crystal.

Ynnad

I never use my debit card to pay for goods using a credit card and paying the full bill from my account when I get the statement, however knowing the requirements I paid for my car service before collecting it. I also paid a few bills with the card. The reason I paid the garage in advance was Nationwide requested I use the card reader each time I tried to make a payment.

Exodi

Ynnad

used debit card a few times on line. They have now said I don't qualify as the debit card was used on line using the card reader they insisted I use. The reason is, in their opinion using the card this way was a money transfer which is excluded. Their conditions state you must use the debit card once and mentions no definition of what is a money transfer.

It reads to me as if you just transferred money from one account to another. Did you actually pay for anything with your debit card?

I think your argument seems to be that while you just transferred money between accounts (which doesn't require the debit card) you 'technically' used your debit card because you needed to use it in the card reader to authorise setting up the new payee? If this is your argument, I would side with Nationwide that you are not eligible for the payment.

Personally I think it's pretty clear what "make 1 debit card payment" means, and I wouldn't have assumed transferring money in the app would count.

If you go on Nationwide's website, they even expand on this point, and explicitly exclude money transfers (bolded below).

https://www.nationwide.co.uk/current-accounts/switch/

What transactions count for the debit card payment?

You can do this by using your card to pay for something in most shops or online. You only need to use it once to meet this requirement.

Recurring card payments count (for example, subscriptions like Netflix or Spotify). So do payments using Apple Pay, Samsung Pay or Google Pay.

These transactions do not count:

Gambling

Cryptocurrency transactions

Cash withdrawals

Cash-type transactions, like buying foreign currency or travellers cheques

Loan, lease and mortgage payments

Money orders

Money transfers

la531983

Making payments via online banking is not "making a debit card payment"

Sadly you have misunderstood and you will have to take this one on the chin.

Ynnad

Their terms say use your debit card once, it's the small print where it says money transfers are excluded. I paid for my car service with the card when the garage phoned to say it was ready. The adviser at Nationwide seemed a tad confused when asked about the difference between paying on line or handing my debit card to the garage. His only response was on line without giving the garage my 16 digit number created a money transfer. When I pointed out that the £340 went to the garage bank account either way he had no reply.

Exodi

It was as we suspected then unfortunately.

If you never use your debit card to pay for goods then that's sadly incompatible with a switch offer that requires you to use your debit card to pay for goods.

Regrettably you would have only needed to make a single purchase of milk or something from the Co Op to be eligible.

eskbanker

The distinction between bank transfers (even if authorised with a debit card) and actual debit card payments should be clearly visible on your statement too.

la531983

https://forums.moneysavingexpert.com/discussion/comment/81908996#Comment_81908996

How did you actually pay the garage?

Did they give you a 6 digit sort code and a 8 digit account number and you went online and transferred the money?

You arent being very clear.