Is this currency charge fair?

By THIS IS MONEY
Updated: 00:00 EST, 18 July 2009

I was going on holiday so checked the exchange rate for euros with Barclays and others. Barclays were not very good so I purchased £500 of euros from a Thomson Holiday shop.

I paid using my Barclays Connect Visa card and when I checked my account online I was surprised to find a handling charge of £4.50 for the transaction.

I went into the bank and asked for an explanation and was told they were standard charges and it was common practice.

My husband and I are 65 years of age and have banked with Barclays since we were in our teens, but have never had to pay anything for withdrawing our own money from of our account.

Is this something that's just been introduced or are Barclays taking the pip because we bought currency elsewhere? C.P., York

Simon Moon from This is Money replies: This charge has been around for a few years, but it is not common practice. Barclays is one of the few UK banks to impose it.

In the past it has been justified on the grounds that Visa makes its own charge which has simply been passed on. Visa, on the other hand, does not support this assertion and as it is the banks themselves that own Visa in Europe the excuse won't wash.

The bank admits there is no handling fee (not to be confused with commission) if customers buy currency from Barclays, so I'm afraid it's just another example of rip-off Britain.

Here is Barclays' explanation: 'Barclays provides commission-free foreign currency and foreign currency travellers cheques with a free home delivery service. There's no cash handling fee when buying currency using a Barclays debit card. Also the customer pays no commission when we buy back the foreign currency notes they have purchased.

'There is a 2% transaction charge (min £1.50 max £4.50) if a Barclays customer uses their card in the UK to obtain sterling anywhere other than a cash machine or Barclays branch, and currency or travellers' cheques anywhere other than a Barclays branch or Barclays website or via Barclays Travel Line.'

›› Currency exchange cards: a good deal?