Tesco reduces credit card charges... and about time too

1 February 2011

Bitterwallet - TescoLots of people have been complaining about the charges you were being hit with when you used your Tesco credit card overseas. Well, after sustained pressure, Tesco got sick of people whining at them and have now reduced the charges.

The problem initially started when Tesco secretly started using its own exchange rates to convert overseas purchases into sterling. Sadly for customers, they were considerably worse that what you'd expect to be charged with if you used a standard Visa or Mastercard.

Thanks to some smallprint which no-one read, Tesco were reportedly pocketing roughly £12m a year.

And now, "in response to customer feedback and to improve transparency", Tesco are playing ball with rates that are in line with the rest of the competition.

Research showed that Tesco cards were sticking a mark-up of around 2% on top of the published 2.75% foreign exchange fee. Every little helps the coffers of the rampant company, it seems.

In a statement, Tesco said its Clubcard credit card "has always offered great value to our customers when shopping in the UK and when travelling overseas", adding: "In response to customer feedback and to improve transparency, we are now pledging to align our foreign exchange rate with the central industry rates. Implementation of the change is underway, and the rate alignment will be in place for all cardholders in February."

TOPICS:   Banking   Investments   Complaints   Credit Cards

6 comments

  • The M.
    [...] Tesco reduces credit card charges… and about time too | BitterWallet [...]
  • Nob
    > Thanks to some smallprint which no-one read Some people did read the small print (although not me). I thought this was one of the ones not recommended by MSE due to their crap rates.
  • Warren G.
    Thanks to your contribution. I have learned something very beneficial today.
  • Ian
    I think they are not the only ones; I used to get mid- market rate on my HSBC and First Direct cards until late last year, when suddenly the rate dropped a full 10 points below the market mid rate. (Chinese Renembi Yuan) To add insult to injury, I was limited to £250 a day withdrawal from the ATM, making ATM withdrawals twice as expensive as before (£500 per day for the same fee).
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