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