# Halifax Visa debit charges



## underthesky (15 Mar 2009)

The [broken link removed] says that the bank charges a 1.75% transaction value charge when a customer uses the bank's Visa debit card in a non euro ATM.

Looking at my online banking with Halifax, it seems the bank is charging me more. Below is a list of last four withdrawals I have made using my card in Australia. The rate applied comes from my online banking statement with Halifax. The true exchange rates are sourced from this page.*
* 
*Date........*.*.True rate......        Less 1.75%.. Rate applied....   Actual charge
12/03/09..    1.9785 AUD..     1.9439 AUD..          1.9260 AUD......            2.65%
05/03/09..    1.9573 AUD..     1.9230 AUD..         1.9040 AUD......             2.72%
27/02/09..    1.9891 AUD..     1.9543 AUD..          1.9160 AUD......             3.68%
24/02/09..    1.9797 AUD..     1.9797 AUD..       1.9350 AUD......            2.26%**
* *
*                                                             So is it right that the bank can apply any rate they want to my withdrawals? I would have thought that I was going to be charged 1.75% from the true exchange rate, and not a different one.


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## CCOVICH (15 Mar 2009)

The 1.75% is a fee based on the value of the transaction.

The exchange rate used is separate to the fee-I'm not sure exactly how it is set, but there will be a margin over the 'true rate'.  For example, oanda.com suggests the credit card rate is interbank +2%, while the cash rate is +4%.

So there are effectively 2 charges



 The cost to translate EUR/AUD (just like if you use a bureau de change, but the    rate should be better)
 


 The fee for using a non-Euro ATM.
No harm in requesting Halifax confirm that this is the case.


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## DublinTexas (16 Mar 2009)

CCOVICH did explain that very good, here some other details:

http://corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp can give you an idea what the charge will be.

Visa set's a conversion rate from currency to currency (which includes a margin for them) and your bank will use that to convert from AUD to EUR.

Your bank than charged 1.75% fee on top of that.


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## cormie (5 Aug 2009)

Hi there,
been wondering about this myself today. They say 1.75% is charged on VISA DEBIT card transactions too, I think, but looking at my account summary, I can't see the charges anywhere and they certainly aren't added on to the actual transaction it seems, infact, this one is coming in cheaper than the exchange rate it says was used..

7/07/2009PAYPAL ************* GB 23JUL        124.70 POUND @    0.848 - Debit EURO: 146.96

but if you divide 124.70 by .848, you get 147.05?

So that along with no evidence of them charging 1.75% (which would be 2 euro 50 or so) makes me wonder..

Then I have these:
22/06/2009    PAYPAL ************* GB 19JUN 20.38 POUND @ 0.834    24.43
18/06/2009    PAYPAL ************* GB 17JUN 5.75 POUND @ 0.834    6.89
18/06/2009    PAYPAL ************* GB 17JUN 15.99 POUND @ 0.835    19.14

They are all correct with the exchange rate show.

Then a non paypal one (I think this was for diesel while in the UK):
06/07/2009    ************* COVENTRY GB 2JUL 45.01 POUND @ 0.841    53.47

this is again, cheaper than 45.01/.841, which is equal to 53.51 EURO and again, no sign of 1.75% charge anywhere.

Can anyone explain?


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## VanZan (20 Nov 2009)

cormie said:


> Hi there,
> been wondering about this myself today. They say 1.75% is charged on VISA DEBIT card transactions too, I think, but looking at my account summary, I can't see the charges anywhere and they certainly aren't added on to the actual transaction it seems, infact, this one is coming in cheaper than the exchange rate it says was used..
> 
> 7/07/2009PAYPAL ************* GB 23JUL        124.70 POUND @    0.848 - Debit EURO: 146.96
> ...



Sorry to dig this up but Cormie did you ever find out why Halifax aren't charging the 1.75%? I'm after getting an Ulster Bank debit and they're charging me like crazy. Halifax don't seem to at all. To be honest I always wondered why but was afraid to post about it. Not wanting to ruin a good thing etc.


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## cormie (21 Nov 2009)

Hey VanZan, I since found out that the charges above are actually inclusive of the 1.75% fee. So if for example, the stated exchange rate was .834, the real exchange rate would have been .848 or there abouts. I thought they weren't charging it and the exchange rate shown was the ACTUAL exchange rate, but it's the ACTUAL exchange rate was 1.75% better for me if you get me?


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## VanZan (21 Nov 2009)

Thanks cormie but you're certain about that? The thing is when I linked and confirmed the Halifax debit with PayPal they only charged my the €1.50. Ulster Bank charged my €1.50 plus their 0.25 charge = €1.75.


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## cormie (21 Nov 2009)

Yep, I'm pretty certain that the 1.75% charge comes into play there. I was told this aswell  I can't remember for certain, but I don't think I've ever been charged commission on a paypal or "verification" lodgement. The 1.75% is only for foreign currency transactions, so maybe paypal took my money in Euro, which I guess they did.

All EURO transactions are free


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## VanZan (21 Nov 2009)

Ok thanks cormie. I thought I was avoiding the charges using Halifax....guess I'll switch to the Ulster Bank one full time from now on....tis handier.


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## cormie (21 Nov 2009)

Do Ulster Bank have a Visa debit card now too? What are the advantages over the Halifax one?


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## VanZan (21 Nov 2009)

I've only just got it this week. I have my wages paid into my UB current account and have eSavings and eSavings Plus accounts with them too. So for me the advantage is I have all my eggs in the one basket. I was only using the Halifax account for the debit card by transferring money from my UB current account to it.

As for other advantages I don't think there's much of a difference. Their charges for foreign payments are a little nastier with a minimum of 0.25c. One thing I thought was good was that when you get the card you need to register it and choose a password. I believe this stops anyone from buying stuff online with it if you lose it. I always thought the Halifax one was dangerous because if you lost it all the details are there on the card to start buying stuff.

If you have a Ulster Bank account and want to get the card be aware there are two types. There's the ordinary Debit Card and then the Service Card. At the moment the Service isn't working with PayPal and a few other places online. The ordinary Debit card confirmed no problem with PayPal but I haven't bought anything with it yet. So you might want to get this one at the moment.


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## cormie (21 Nov 2009)

Thanks for the info! I think the Halifax one is fine for me. I don't have an Ulster Bank acc and there is a Halifax branch about 500m from my front door so I can lodge cash and have it there in an instant any time which is dead handy for me, I've also found the fact they open till 5 and till 12 on a Saturday a big advantage for me and have taken advantage of that many times. As I only use the account for card transactions, it's pretty much spent within 10 minutes of it being lodged so nothing to worry about on that end either


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## bond-007 (21 Nov 2009)

I agree Cormie, it is a very handy card to have. I simply transfer money from UB in the morning and the money is on the Halifax card by 8pm the same evening.


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## VanZan (21 Nov 2009)

bond-007 said:


> I agree Cormie, it is a very handy card to have. I simply transfer money from UB in the morning and the money is on the Halifax card by 8pm the same evening.


 Will you be getting the UB debit card Bond?


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## bond-007 (21 Nov 2009)

Not for the moment.


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