Foreign Currency - Cash Transaction Fee

  • Sluphie's Avatar
    Fresh Eyes

    Completely my mistake but I did not realise that purchasing some foreign currency from TUI and using my Tesco credit card would incur a cash transaction fee and interest.

    I am someone who has their full statement balance paid off every month automatically by direct debit. Statement generates on 12th of the month and is paid by DD on the 1st of the following month. Never ever ever get charged interest so have no idea how this works.

    I now understand I’ve paid a one off transaction fee and will be charged interest on the currency transaction from the date of the transaction (14/11). With my statement not due to be generated until 12/12, that will be a month’s interest. If I pay the statement balance off on the 13/12, will the interest then stop accruing?

    If I pay my current whole balance off in full to take my card to £0 tomorrow, would that stop the interest? Or do I have to wait until a statement is generated?

    Incredibly annoyed I’ve managed to screw this up - the money I saved myself going through TUI I’ve now more than lost in transaction fees and interest.
  • 2 Replies

  • ChristopherP's Avatar
    Your Community Expert
    @Sluphie Hey there, thanks for getting in touch. I'm sorry to hear about this.

    When you make a cash transaction, we charge a fee of 3.99% and interest at your standard cash transaction rate. This is from the date of the transaction until the date this cash balance is paid.

    This means you will see interest charged over two statements. The first statement will show the cash transaction fee and the interest from the date of the transaction until the statement came out.

    The second statement will show interest accounting for the period between the first statement coming out and the balance being paid in full. After this there’d be no more interest applied to this specific transaction.

    However, if you clear the whole balance then interest would stop at the point. You don't need to wait until your statement is generated.

    I hope this clarifies things for you.

    If you need to ask a question about a Tesco Bank product, you can make a post in Help & Support here

    Also, feel free to Introduce Yourself!
  • teodorio's Avatar
    If you pay your current whole balance off in full to take your card to £0 tomorrow, the interest will stop accruing. You do not have to wait until a statement is generated.