Barclaycard Increases Cash Machine Charges | Prepaid365

Powered by PFS
12 April 2012
Category:
News

Tags: , , ,

Barclaycard is to make changes to the amount it charges for customers to withdraw money from cash machines, the finance company has announced.

The firm also plans to impose new charges on gamblers who use a Barclaycard credit card to place bets from the end of next month.

There is currently no charge for placing a bet using a Barclaycard credit card, but from next month it will be subject to the same charge as using a cash machine.

The changes are due to come into effect on 28th May, and will see card holders paying more for withdrawing cash from ATMs.

From this date, anyone withdrawing cash with a Barclaycard credit card will be charged a single fee of 2.99%, with a minimum charge of £2.99.

This is a boost of 0.4% from the 2.5% charge currently levied against cardholders withdrawing cash, with a minimum fee of £2.50.

Despite the hike in cash machine charges, those who use a Barclaycard credit card while abroad are set to be better off under the new regulations.

The 2.99% charge will still apply to foreign cash machines, but this will be the only charge levied against people using their credit card abroad.

Under the new system, there will be no interest added to the fee as long as cardholders pay off the money by the due date specified in their card statement. As well as this, there will be no charge for a currency exchange.

However, Barclays debit card users will incur a 2.99% charge for currency exchange plus a 2% fee for using a foreign cash machine – with a minimum charge of £1.50 and a maximum charge of £4.50.

While there is no currency exchange charge for Barclaycard credit card users at foreign ATMs, the exchange charge for making purchases abroad is to go up from 2.75% to 2.99%.

Barclaycard is not the only company increasing its cash withdrawal charges. A number of credit cards, including Play and Capital One, are charging customers a fee as well as interest even if they pay their card debt off in full each month.

“Withdrawing cash on a credit card, rather than a debit card, is never advisable,” said Louise Holmes, from comparison site Moneyfacts.

“Interest will be charged almost immediately and rates for cash withdrawals are typically higher than those for purchases.”

Ukash Travel Money

You can avoid high fees and interest by switching to a prepaid card. These offer many of the same rewards as credit cards but can be a much cheaper option, especially if you have a poor credit rating.

Comments are closed.

Want to find out more about corporate travel cards?

Get in touch