Wealth Blog | HSBC to refund credit card cash withdrawal fees for UnionPay card users

Cash advance fees

Readers, we have a result. Whether it was because of persistent badgering by this column, based on your experiences, or direct customer complaints, HSBC has agreed to refund the fees if you have no option but to use your credit card to get cash overseas.

To recap on the ongoing saga of HSBC’s change to chip ATM cards, the bank has finally given me answers. HSBC switched from the globally accepted Cirrus and Plus clearing systems – the symbols on the back of your plastic cards – to the cheaper, China-based UnionPay system earlier this year. When they told customers, as they claim they did, I and many others missed it and as a result, got stranded, cash-less, overseas. Because ATM machines which support UnionPay are not that common outside Hong Kong and China. And overseas HSBC branches are not that numerous either. In the past, you could poke your Cirrus/Plus card in pretty much any ATM anywhere and extract cash. Not any more.

Think, link and travel

In fact, your HSBC ATM card will not even work in HSBC machines in nine countries. Many customers only realise this when they get there. In addition, the bank unilaterally re-set everyone’s overseas cash withdrawal limit to zero on March 1. Again, few people got the message. I and many others were caught out. Now, to get cash overseas, customers must inform their branch before travelling. To be sure, go in person. When I tried to do this retrospectively from the Taunton HSBC branch in England, the bank’s phone banking headquarters refused to believe their own manager was who he said he was, so no dosh.