Non-Sterling Transaction Fees

[FrodshamJnct]

Evening all.

I recently booked a hotel through Expedia which is a reserve-at-the-time-of-reservation, pay-on-arrival booking. I'm due to arrive at the hotel on 2nd May 2022. On Sunday (3rd April 2022), the hotel in question took two full lots of the total reservation fee (so 2 x £673). I called Expedia who advised me to take it up with the hotel. I called the hotel who informed me that there'd been a system error and they'd refund me the full amount (£1,346). A refund for one of the £673 transactions was processed this afternoon, but my bank, Nationwide, have charged me a non-sterling transaction fee of £20.14. I called Nationwide and the adviser informed me there was nothing she could do to reverse the non-sterling transaction fee, despite my plea that it seemed unreasonable that I've incurred this charge due to the hotel's administrative error. I have subsequently raised a complaint with Nationwide.

My question is - am I likely to get anywhere with this, or is it something I'm just going to have to swallow? I understand and accept that it is no fault of Nationwide, and technically they don't have to refund me as they did the processing of the non-sterling transaction and have charged me the pertinent fee, but as a matter of good customer service, might they choose to do so?

 

[C96]

Complain to the hotel?

 

[seagull]

I'd be more inclined to take it up with the hotel as it was their mistake that caused the transaction fee in the first place.
You could suggest a discount on the stay, or even a couple of free drinks on arrival, something that wouldn't cause you yet another sterling transaction fee, anyway!

 

[FrodshamJnct]

Complain to the hotel?

I've done that, and they're refunding me what they should never have taken. My issue is that I've incurred the £20.14 non-sterling transaction fee (charged by Nationwide) as a result of the hotel's error. It's a fee charged by Nationwide so the hotel won't do anything about it.

I'd be more inclined to take it up with the hotel as it was their mistake that caused the transaction fee in the first place.
You could suggest a discount on the stay, or even a couple of free drinks on arrival, something that wouldn't cause you yet another sterling transaction fee, anyway!

Yeah I've a feeling it might end up being something along those lines.

 

[mikeg]

I thought nationwide didn't charge non sterling transaction fees on their credit card?

Plenty of credit cards available which avoid these fees, even a few bank accounts which have no such fees on their debit cards too.

 

[najaB]

It's a fee charged by Nationwide so the hotel won't do anything about it.

If they want your business again they really should. Are they part of a chain?

 

[FrodshamJnct]

I thought nationwide didn't charge non sterling transaction fees on their credit card?

Plenty of credit cards available which avoid these fees, even a few bank accounts which have no such fees on their debit cards too.

Yeah it’s a debit card where the fees apply unfortunately.

If they want your business again they really should. Are they part of a chain?

Yeah they are so if my Nationwide complaint fails I’ll see where I can get with them.

 

[Ianigsy]

It’s worth complaining- there has to be somebody with the authority to refund it even as a goodwill gesture.

Looking through my late uncle’s papers a few days ago, I found an email where he challenged not only a $1.50 toll from the Illinois toll road but the $10 admin charge that the car hire company added. Although in his case, a certain pedantic miserliness was one of his hobbies!

 

[DelayRepay]

Did you incur fees for the original transactions (the debits) as well as for the refund?

 

[FrodshamJnct]

Did you incur fees for the original transactions (the debits) as well as for the refund?

At the moment, only one transaction has fully processed - so they’ve taken £673, refunded it, and there’s a fee of £20.14. The other £673 they’ve taken shows as a pending transaction so when that processes I may well get another fee charged!

 

[DelayRepay]

At the moment, only one transaction has fully processed - so they’ve taken £673, refunded it, and there’s a fee of £20.14. The other £673 they’ve taken shows as a pending transaction so when that processes I may well get another fee charged!

I used to deal with complaints at a different bank. Even though the fee might be legitimate, I would probably have refunded it as a goodwill gesture. I'd have done this because actually dealing with your issue as an official complaint would have cost more than £20 in admin. Whereas if I refunded the £20.14 as goodwill it could probably be dealt with on a quick phone call, the customer goes away happy and we don't have any more work to do on their complaint.

 

[mikeg]

I agree Nationwide should probably apply a goodwill gesture at the very least refund these charges.

However I'd not put something like this on a debit card, rather a credit card as you'd then get s75 rights

 

[FrodshamJnct]

I agree Nationwide should probably apply a goodwill gesture at the very least refund these charges.

However I'd not put something like this on a debit card, rather a credit card as you'd then get s75 rights

Yeah good point, it’s not something I ever expected to happen so just put in my debit card details on autopilot. I won’t be doing that again!

I used to deal with complaints at a different bank. Even though the fee might be legitimate, I would probably have refunded it as a goodwill gesture. I'd have done this because actually dealing with your issue as an official complaint would have cost more than £20 in admin. Whereas if I refunded the £20.14 as goodwill it could probably be dealt with on a quick phone call, the customer goes away happy and we don't have any more work to do on their complaint.

I’m hoping that’s what they offer as a resolution!

 

[zero]

If you must use a card with a forex fee, book on hotels.com which allows you to pay in GBP at the interbank exchange rate on the day of booking. You also get about 9.1% back in the form of "stamps" which can be used for a "free night" when you've accumulated 10. I frequently find hotels.com to be cheaper than booking on a hotel's own website for some reason, and even when it's a bit more, the stamps cancel it out.

You should choose the pay upfront option, even for fully refundable bookings (so that you can use hotels.com exchange rate) and this way the hotel never gets your card details unless you give them a card at check in (not required at most hotels if you've already paid and they don't offer / you decline the ability to charge things to your room). If you do need to cancel you get refunded exactly what you paid.

Hotels.com is part of Expedia and recently booking on them my card statement even just shows Expedia.

Make a complaint to Nationwide. There isn't any justification for charging a 3% forex fee these days (they call it the "industry standard"), especially when the transaction is voided. I'd say 1.5% may be reasonable, and in any case there are a number of debit cards available that don't charge forex fees.

 

[najaB]

There isn't any justification for charging a 3% forex fee these days (they call it the "industry standard"), especially when the transaction is voided. I'd say 1.5% may be reasonable, and in any case there are a number of debit cards available that don't charge forex fees.

Indeed. Nationwide has several: https://www.nationwide.co.uk/help/travel/charges-using-your-card-abroad/#purchases