Nationwide’s message to 16 million customers to avoid extra fees
Holidaymakers have been warned (Image: Getty)
Nationwide customers have been given an important money-saving message. In a bid to protect customers’ finances, the popular building society has urged people to make one simple swap.
On its website, Nationwide, which has over 16 million customers, said that if people are heading abroad this year, they will want to take extra steps to protect their money. And to stop people from paying “additional charges”, it notes that there is one option to go for.
It explains that when you use your card abroad, you may be asked to pay by one of two ways. “When you make a card transaction in a foreign currency, you’ll be asked whether you want to pay in a foreign currency or pounds sterling”, Nationwide explained.
They urge people who want more money in their bank to make the simple swap and pay in a foreign currency: “If you choose to pay in a foreign currency, Visa will convert your payment into pounds sterling using their standard Visa exchange rate. Then, we’ll deduct the amount in pounds sterling from your account.”
However, if you pay in pounds sterling, “the retailer or cash machine owner will convert your payment. They may also add on additional charges. This will often cost more than paying in the local currency.”
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Fees for using your card in a foreign currency
Nationwide explains: “Some of our debit and credit cards have fees for using your card abroad or in a foreign currency. This includes if you pay in person, online or over the phone. If the fees apply to your card, you’ll pay them on every transaction you make in a foreign currency.”
You can read in detail about all of the charges you could expect here. This includes fees for using debit cards, credit cards and cash withdrawals.
Cash withdrawals
When it comes to withdrawing cash, it warns that some customers may see “additional charges from cash machines or banks when you withdraw money abroad or in a foreign currency.”
Urging people to “check before you make the transaction”, it says this includes circumstances such as:
- withdrawing foreign currency from a cash machine abroad,
- withdrawing foreign currency from a cash machine in the UK, or
- buying foreign currency over-the-counter at a bureau de change, bank, or Post Office before you go
Where should I buy foreign currency?
In advice to holidaymakers, it reminds people that you can withdraw foreign currency over the counter at a bureau de change, bank, Post Office or non-Nationwide cash machine that dispenses foreign currency.
It warns: “Your supplier should advise you of the rate of exchange they have used, which may be different from the Visa exchange rate for that day.”
Can I use UK cash machines to buy foreign currency?
Nationwide further explain: “If you use a UK-based cash machine that dispenses foreign currency and it displays the LINK logo, your transaction will come to us as a pounds sterling cash transaction. This means you won’t need to pay a non-sterling transaction fee.”
It concludes by warning: “If you use a UK-based cash machine that does not display the LINK logo, the transaction will come to us in the same way as if the cash machine had been located outside the UK. This means we’ll receive the non-sterling amount of the foreign transaction (along with its pounds sterling equivalent, as converted by your cash machine provider) and so you will need to pay our non-sterling transaction fee.”
