Can I claim back the charge?

jrrrobinson

Hey everyone,

I recently purchased some dollars from TravelEx online using my credit card. I was (not) surprised to see a charge from the Halifax for Cash Advance. However, I believe that I have not had a cash advance direct from the Halifax. If I have gone into a branch and ordered dollars or used an ATM, I could understand the charge but I have purchased the dollars from a third party the transaction in sterling. Halifax won't budge but I feel that I am being peanalised. In the T+C's there is no mention that a charge will apply if using a third party to purchase currency. The T+C's state:

[FONT=Arial, Helvetica, sans-serif]5. Charges [/FONT]
[FONT=Arial, Helvetica, sans-serif]5.1 We make a handling charge of 3% (at least £3) for all cash advances, and 3% (at least £3) for balance transfers and cheques. We may also limit the amount of your overall balance that can be made up of cash advances to a percentage of your overall credit limit. If we apply this cash limit we will tell you what that limit is and we will tell you if it changes at any time[/FONT]

[FONT=Arial, Helvetica, sans-serif]5.2 If in any month you incur interest and this is less than 50p, we will make a charge of 50p which will be added to your account in place of the interest.[/FONT]
[FONT=Arial, Helvetica, sans-serif][/FONT]
[FONT=Arial, Helvetica, sans-serif]5.3 If you make transactions in a foreign currency, we will change the amount to sterling at the exchange rate used by the payment system. We will charge 2.95% of the value of each foreign-currency transaction. The sterling amount shown on your statement will include this charge. If the transaction is a cash advance we also charge the cash advance handling charge shown above[/FONT]

What do you think? Do I have a case for claiming back the charges?

Cheers,

Jason.

dmg24

No, you don't have a case.

KTF

Paying for currency on a credit card is considered a cash advance and the charges apply. Travelex highlights this on their website before you make the purchase.

Please note that the purchase of travel money with a credit/debit card may incur a cash advance fee from your card issuer.

YorkshireBoy

jrrrobinson wrote: »

The T+C's state:

[FONT=Arial, Helvetica, sans-serif]5. Charges [/FONT]
[FONT=Arial, Helvetica, sans-serif]5.1 We make a handling charge of 3% (at least £3) for all cash advances, and 3% (at least £3) for balance transfers and cheques. We may also limit the amount of your overall balance that can be made up of cash advances to a percentage of your overall credit limit. If we apply this cash limit we will tell you what that limit is and we will tell you if it changes at any time[/FONT]

[FONT=Arial, Helvetica, sans-serif]5.2 If in any month you incur interest and this is less than 50p, we will make a charge of 50p which will be added to your account in place of the interest.[/FONT]

[FONT=Arial, Helvetica, sans-serif]5.3 If you make transactions in a foreign currency, we will change the amount to sterling at the exchange rate used by the payment system. We will charge 2.95% of the value of each foreign-currency transaction. The sterling amount shown on your statement will include this charge. If the transaction is a cash advance we also charge the cash advance handling charge shown above.[/FONT]

The T&C's also state...

[FONT=Arial, Helvetica, sans-serif]The following words have a special meaning.[/FONT]

[FONT=Arial, Helvetica, sans-serif]Cash advance - cash, traveller's cheques or foreign currency obtained by using the card or money transfers, finance payments or gambling transactions made with the card. [/FONT]

jrrrobinson

Thanks peeps! Appreciate the replies. A lesson learned!!!

jonesMUFCforever

Beware as this could have happened if you had used a debit card as well!

NickX

jonesMUFCforever wrote: »

Beware as this could have happened if you had used a debit card as well!

How do you mean ?

Cash advances from a Debit Card do not incur charges to my knowledge.

exel1966

Oh yes they do with Travelex ! I got caught out by this many years ago before we had the likes of MSE to keep us informed !

Charges

Foreign currency banknotes, foreign currency Cash Passports and foreign currency travellers cheques are sold commission free. Commission is applicable to Sterling travellers cheque and Sterling Cash Passport transactions. The total sum payable by you (except for any charges levied by your credit or debit card issuer) will be shown on the ordering screen. You can pay for orders with most major credit or debit cards issued in the United Kingdom registered in your name and with sufficient funds available to cover your order and any applicable fees. Credit/Debit cards may be subject to a cash advance fee made by the card issuer. We have no control over and are not liable for such charges.

NickX

exel1966 wrote: »

Credit/Debit cards may be subject to a cash advance fee made by the card issuer. We have no control over and are not liable for such charges.

What a sneaky trick :mad:

I bet I've paid this myself and not noticed - surely a Debit Card shouldn't charge, after all you don't get charged from withdrawing cash from an ATM on a Debit Card, this is sheer profitering.

jrrrobinson

I would usually get cash out of my account at the airport and then purchase currency. I used TravelEx over the web for convenience... well, convenience seems to come at a cost!



I'll be reverting back to my old method in future! Thanks for your advice and interest.

jonesMUFCforever

NickX wrote: »

What a sneaky trick :mad:

I bet I've paid this myself and not noticed - surely a Debit Card shouldn't charge, after all you don't get charged from withdrawing cash from an ATM on a Debit Card, this is sheer profitering.

This happens with some banks when purchasing travel money at the Post Office.
There are some ATM 's that do charge but they should advise you in advance in order that you can cancel the transaction should you not want to proceed.