Halifax Credit Card Users - Be Aware

[tigger137]

From 8 August 2006, there's a new addition to the Terms & Conditions for Halifax credit cards: "Foreign currency payments to your credit card will incur a handling fee of £10".

So if, for example, while in the States you use your card to buy something from a shop but then have to take it back for a refund, the Halifax will charge you £10 for the transaction, in addition to their usual currency exchange fee (usually 2.75%).

Or if you buy something on the internet from overseas using your Halifax credit card but then have to be given a refund, Halifax will charge you £10.

And if you are an Ebay seller, with payments being made through PayPal onto your Halifax card, any time the payment is made other than in sterling, again you'll be charged £10.

Any time a foreign currency payment is made to your card, for however small an amount and under whatever circumstances, Halifax will charge £10.

They say that they have, "made these changes in line with other credit card providers". But I've checked with my other cards and none of them levy this charge.

I shall now make sure that I don't use my Halifax card for any overseas transactions; I'll give my business to another provider.

Just wanted to draw this to the attention of other DisBoards readers.

 

[Disney owl]

Thanks def worth noting.

 

[scojos]

thanks, we were taking our halifax card with us, will have to choose one of the others now
(yes i have lots
tracy

 

[Laurafoster]

I was told by Halifax that a "refund" did not count as a payment?

 

[SEVANS2208]

I'd be very surprised if they charged £10 for a refund. Surely this additional charge is if you use the card to purchase foreign currency? In which case this is pretty standard practice with credit cards providers, I think.

 

[tigger137]

When I e-mailed Halifax to ask, they confirmed the charge would be made for any transaction including a refund.

 

[Laurafoster]

Seems like not all of Halifax staff know about this rule on refunds - i spoke to one in my Branch and they said it doesnt charge for refunds.

Not sure they will get away with that as your basically being penalised for returning goods which is within your rights to do so.

 

[paulh]

thanks, we were taking our halifax card with us, will have to choose one of the others now
(yes i have lots
tracy

Get a nationwide one there is no 2.75% comission so you get the bank rate also get same with flexaccount from atms cash withdarwals
Paulh

 

[Andrew DEREK UK]

Typical for Halifax to make a song and dance about it, should try another bank! They give you pence more on current account, but then charge you a lot more elsewhere!

 

[theb52s]

I don't know about paying you pennies. I made nearly £100 on their cashback card last year. As for this charge I don't think I have ever had a refund in a foreign currency in my life. It's certainly not something I will be worrying about.

 

[Andrew DEREK UK]

I have had things taken from my card after I left the country and had ot get it paid back I lost on the exchange rate as well.

 

[tigger137]

I've now had a written response from the Halifax which confirms that the £10 charge will be made for ANY payment to your credit card in a foreign currency. This includes refunds.

For example, you give your Halifax card as payment for your Disney hotel room. On your last morning, they put the bill under the door, and have accidentally charged you for a $2.50 phone call you didn't make. No problem, you speak to the front desk and they refund the amount to your credit card. But then Halifax charge you £10 for the privilege.

You may not PLAN to ever have a charge made to your card in a foreign currency but it can easily happen. With a Halifax card it may well cost you more to have the refund than if you just pay for the wrongly-billed item, throw away the faulty CD, keep the wrong size T-shirt, etc etc.

They have stated again that the change has been made in line with, "general economic conditions, competitor activity and also to reflect market conditions". What a load of rubbish! Why can't they just be honest and say they've found another way to fleece their customers that they hadn't thought of before?!