Snouts Wide Open

[RubbaJohnny]

Nationwide to impose charges on debit and credit cards used abroad

Nationwide Building Society's credit and debit card customers are to incur charges when they use their cards outside Europe, reversing the mutual's previous policy.

By Emma Wall

Last Updated: 4:05PM GMT 04 Mar 2009

Nationwide had previously made much of its fee-free policy Photo: JUSTIN LEIGHTON Nationwide, long hailed a consumer hero for its refusal to charge customers when using their card overseas, is now to pass on to customers any charges levied by Visa, its card scheme provider, or any other institution. These charges are typically about 1pc. Nationwide will apply the fees from May 6.

Martyn Saville, a credit card expert at Which?, the consumer lobby group, said: "Nationwide's decision to start charging customers fees for most purchases outside Europe is incredibly disappointing.

"Nationwide had been a shining light to the credit card industry with its no-fee policy on overseas purchases – it's a shame they've now sold out and fallen into line with the rest of the market."

Nationwide has previously promoted its charge-free overseas capacity heavily in advertisements and is prepared to face disappointment from customers. The society said it was mailing its credit card customers with full details of the changes this week. It cited the credit crisis as the reason it can no longer absorb the charge.

Steve Blore of Nationwide said: "As a prudent organisation, we have to maintain the balance between offering competitive products while ensuring they are sustainable in the long term, particularly in the current economic climate.

"Our cards remain commission-free when used anywhere in the world and customers using their cards in Europe will not receive any charges, as the Visa fee does not apply here."

The society's website says: "When you use a Nationwide Visa debit card or credit card to make a transaction in certain currencies other than sterling, Visa charge a fee for each transaction and Nationwide currently pays that fee on your behalf.

"We will start to pass this fee onto you from 6 May 2009 on credit card and from 1 June 2009 on debit card and it will be included in the sterling amount shown on your statement. The fee is currently 0.84pc. From 1 July 2009 this fee will increase to 1pc."

Thomas Cook will also be introducing charges from next month, having previously not charged holders of its Personal Finance Credit Card Visa for usage abroad.

But there are still a couple of products on the market that continue to offer charge-free use overseas. The Post Office offer two credit cards, the Classic MasterCard and Platinum MasterCard, which do not charge.

Saga offers a Platinum Visa which makes no charge in the European Union, but which does charge for worldwide usage.

David Black of Defaqto, the data provider, said: "For those who travel abroad and use their credit card there is a clear advantage in using one of the above cards."

[scottyd]

http://www.thaivisa.com/forum/Nationwide-B...ty-t245843.html

[H2oDunc]

RubbaJohnny you may not have noticed but just lately the banks are having a bit of a hard time at the moment. You now lots of them going out of business. I would not call it putting their snouts in the trough to try to keep their costs to a minimum or do you believe they should subsidise your spending here ?

[Gary A]

They have a long way to catch up with Citibank. Citibank canceled my credit card because I'm not residing in the US and they see fit to charge a three percent currency exchange fee for ATM transactions.

[endure]

Just for information Nationwide aren't a bank - they're a Building Society - a mutual organisation owned by its customers similar to a Savings & Loan in the US. That said, over the past few years they've become more and more bank-like.