Nationwide Building Society, the UK's largest mutual financial institution, has released a comprehensive update aimed at its extensive customer base of 16 million individuals. This communication specifically addresses the fees and charges associated with using Nationwide debit and credit cards for transactions in foreign currencies.
Understanding Foreign Currency Transaction Fees
The building society has published detailed information on its official website, enabling customers to easily compare the costs involved when using their cards abroad. This includes purchases made in person, online, or over the phone, as well as cash withdrawals from ATMs in a foreign currency.
Key Details for Cardholders
Nationwide, which maintains a significant presence including branches in Birmingham, outlines that the fees apply to transactions conducted in currencies such as euros or US dollars. The guidance covers scenarios where customers are physically present overseas or making digital purchases from the UK.
Important considerations include:
- Fees may apply when using the physical card or when utilising card details stored in digital wallets on smartphones.
- The provided information does not encompass every potential charge, as individual retailers or ATM operators may impose additional fees beyond Nationwide's control.
- Customers are strongly advised to verify any extra charges before completing transactions while abroad.
Currency Conversion Choices
When making a card payment in a foreign currency, customers will typically be presented with a choice at the point of sale or ATM. They can opt to pay in the local foreign currency or have the amount converted to pounds sterling immediately.
If selecting payment in the foreign currency: Visa will handle the conversion using their standard exchange rate, after which Nationwide will deduct the equivalent pound sterling amount from the customer's account.
If choosing to pay in pounds sterling: The retailer or ATM operator will perform the currency conversion. This method often incurs higher costs due to potentially less favourable exchange rates and additional charges imposed by the merchant.
Applicable Fees on Specific Cards
Nationwide clarifies that certain debit and credit cards within their product range carry specific fees for international usage or foreign currency transactions. These fees are applicable per transaction whenever the card is used in a foreign currency, regardless of whether the payment is made in person, online, or via telephone.
The building society emphasises the importance of customers reviewing their specific account terms to understand which fees apply to their particular cards, ensuring transparent financial management during international travel or overseas purchases.
