Foreign Currency Refund 19 October 2004 at 3:25AM edited 30 November -1 at 1:00AM in Budgeting & Bank Accounts 4 replies 1.6K views

Compound_2

When you do card transaction in foreign currency, banks generally add around 2.75% to the sterling value. Does this also happen with refunds, or do you loose the commission?

MarkyMarkD

When you do card transaction in foreign currency, banks generally add around 2.75% to the sterling value. Does this also happen with refunds, or do you loose the commission?

When I had a pair of transactions (debit and credit) I got charged 2.75% one way on the debit and 2.75% the other way on the credit - in other words, I lost 5.5% in the churn.

I complained to the card company (HBOS IIRC) and they refunded the difference. So complain if it's happened to you.

Compound_2

I got charged 2.75% one way on the debit and 2.75% the other way on the credit - in other words, I lost 5.5% in the churn.

How do you know what charge they are applying? The 2.75% if applicable is included in the exchange rate. A different rate could be due to charging or the market.

Are you entitled to a full refund if the pound rises in value between purchase and refund? Can you make a profit if it falls?

GW

My bank has just charged me 4.50 for a EURO purchase in the Post Office.
I rang the bank and complained. Initially I was told the bank should have informed me before completing the transaction. Difficult as it did it in the Post Office. It was then suggested the charged is detailed in my Ts&Cs.
They refused to refund the charge. The account has been in credit throughout.

simongregson

compound wrote:

When you do card transaction in foreign currency, banks generally add around 2.75% to the sterling value. Does this also happen with refunds, or do you loose the commission?

If the refund is processed as a refund, then you could lose out if the exchange rate has changed between the two transactions. If the original transaction is 'reversed' it doesn't even show on your statement (I had this done when a hotel overcharged me recently)

However, as in the country where the transaction takes place it wouldn't make a blind bit of difference how the refund was processed, it is not always done in this way.

Most banks seem to refund the difference without any fuss.