Nationwide Credit Card Scam

JohalaReewi

guitaristkam wrote:

Working 4 another uk bank myself, i can tell u that its not a bank thing

Because u have a UK bank account and the UK is not part of the euro, even if u use ur card in a euro country, ur own bank at home will convert the euro amount in pounds sterling and put it onto ur account that way

So even if u said at the car rental place u wanted ur account debited in euro's, it wouldn't matter because it would have been converted at the exchange rate on that date

Hope this helps

Not quite

You are right in that your own UK bank will convert the euros to sterling but Nationwide are a nice bunch and do not charge commission on the exchange. So you will pay less sterling for the euros than you would if it is converted by the car rental place (they will charge commission and keep it )

mrsw

Why does this only affect Nationwide customers if it is a Visa issue?

JohalaReewi

mrsw wrote:

Why does this only affect Nationwide customers if it is a Visa issue?

Not just Nationwide but any credit card that doesn't charge commission on foreign currency transactions. Other card issuers load the exchange rate with their commission (typically 2.75%) so it costs you more sterling.

Actually, it is not a VISA issue, it is an issue with foreign companies who bill you in their own currency (eg euros) but charge the amount to your card in sterling using their own (unknown) exchange rate and make the commission on the exchange.

The problem is that you have no control over the commission charged if your transaction gets converted by a.n.other after you have signed and effectively paid in euros (or whatever) but your card is billed in sterling so you could still be being ripped off with any credit card (just moreso with a Nationwide one).

grumbler

mrsw wrote:

Why does this only affect Nationwide customers if it is a Visa issue?

Well,
Most CCs charge 2.75% for conversion of local currency into ££s. Nationwide doesn't charge this. DCC means that local bank makes conversion and you pay in ££s. Usually local bank charge 3%+ for conversion. For non-NW card difference is very small: you pay either 2.75% to UK bank or 3%+ to a local bank. With NW card you lose 3%+ when DCC takes place.

(I am not sure, but possibly not UK bank (CC company) but Visa itself charges 2.75% for currency conversion. If this is correct, then NW reimburse this fee to costomers. With DCC NW cannot do this as they do not have any information - transaction appers in ££s - and local bank's fee can vary and can be up to 5%+)

Rafter

grumbler is right. Most UK cards charge 2.75%, Nationwide, Saga and Liverpool victoria charge nothing. The 2.75% is partly to cover the Visa imposed international fee for sorting out the conversion and movement of funds internationally, partly to cover higher fraud risk when a card is used outside the UK, and partly to make money for the bank.

Nationwide etc have decided to absorb these costs as part of their overall card package.

Nationwide has paid no part in this fraud but the retailer has by promising you it will invoice in euro and then billing you, at an uncompetitive rate in sterling through its credit card company.

To avoid this increasing scam in Europe:

- Always get a slip to sign and always insist it is in Euro and not Sterling.
- If they refuse to give you a sterling one, go find a cash point and use your Nationwide debit card to withdraw funds or take your business elsewhere to someone who will bill you in local currency.


R.

michaels

Back to the point of the thread - do you think Nationwide can make the sterling transaction stick given that the OP had only authorised the EUR slip?

grumbler

michaels wrote:

Back to the point of the thread - do you think Nationwide can make the sterling transaction stick given that the OP had only authorised the EUR slip?

It is not clear that OP had authorised the slip in euros. Otherwise OP would have a copy of the slip and there would be no problem. I don't think that Nationwide makes transaction. They just receive it electronically and can dispute it on request of a customer.

jonesMUFCforever

dee2005 wrote:

On the contrary, ejones. As I said in my message, Nationwide have debited my account with an unrecognised amount from an unrecognised company, using an unsigned sales slip. And then, as I also said in my message, the Nationwide employee insisted that I had signed in agreement with the amount in sterling, yet there is no signature on the sales slip.

Just because you don't sign a slip does not mean its fraud or a scam. How many times have you ordered something online? Do you have to sign??
How many times have you ordered over the telephone? Do you have to sign?
With chip and pin do you have to sign for a transaction?
Many shops/companies use a holding company for their banking eg I shop a lot at our local SPAR but the entries are always made out to Tates.
Nationwide would not have thought anything was amiss until you informed them.
I presume that you have given them details of the car rental firm and the amount you should have paid - unless someone is trying to get away without paying.
Eric

MarkyMarkD

ejones999 wrote:

Many shops/companies use a holding company for their banking eg I shop a lot at our local SPAR but the entries are always made out to Tates.

That's not a holding company! SPAR is an association of independent retailers so Tates is almost definitely the name of the actual shop owners.


Re other posts, I know that it's not Nationwide's fault that DCC is happening, and Nationwide are clearly a very small player in the world credit card market.

BUT Nationwide are making advertising capital out of the fact that their customers save money on overseas transactions - which simply isn't true when a rapidly increasing minority of those transactions are subjected to DCC.

For that reason, it IS Nationwide's responsibility to lobby VISA about this.

MarkyMarkD

Rafter wrote:

To avoid this increasing scam in Europe:

- Always get a slip to sign and always insist it is in Euro and not Sterling.
- If they refuse to give you a sterling one, go find a cash point and use your Nationwide debit card to withdraw funds or take your business elsewhere to someone who will bill you in local currency.


R.

But as I said, and the OP said, even signing a transaction slip in EUR doesn't stop the scalliest suppliers from converting it under DCC and submitting it to your card operator in GBP. :@