Letters: French banking practices are commercial nonsense
Connexion reader says that spending limits force him to turn to foreign banks
Spending limits prevent you from withdrawing too much money from your account
DenPhotos/Shutterstock
To the Editor,
I read your article on French banks and their bizarre approach to credit and debit card spending limits.
I’m with Banque Populaire and it’s just the same:
You can have a credit balance of thousands on your current account but your card (debit or credit) won’t let you withdraw it.
€300 per day by debit card withdrawal is the limit and don’t you dare ask for more!
Using card and iPhone token, I can withdraw €500.
Of course, it’s all done to drive up what they think is more revenue from annual card fees. Cheaper fee cards have lower limits so if you want an increased withdrawal or spending limit on your card, you have to upgrade it to a more expensive annual fee card.
The banks will hide this by claiming that their system helps prevent people getting into too much credit card debt.
Read more: Third online bank to close amid competitive market in France
To some extent this is true, but when you’ve already a credit balance of thousands they still apply the same bizarre rules.
Here French socialism kicks in, all clients will be treated equally despite obviously different client salary earnings.
It’s obvious one size won’t fit all. I’m an ex-banker of 40 years experience in banks across Europe including the UK, Switzerland, Luxembourg and France.
Believe me when I say France is strange!
Banque Populaire also caps my credit card spend with a curious algorithm that calculates your available spending limit (yes, it changes daily!) on a rolling balance based on the past 30 days.
If you purchase for a large transaction at the beginning of the algorithm cycle, you’ll be rapidly blocked from further spending as you’ll soon reach your limit, until the 30 days have “ rolled” by and your limit slowly increases again.
Highly annoying when you want to tank up your car at 2am in the morning and “the computer says no”.
When the rolling balance won’t allow a purchase with the Banque Populaire card, I just use my Swiss UBS card instead.
This means that Banque Populaire loses the 3% commission they’d normally charge a retail shop on the transaction.
If I was to upgrade my credit card, Banque Populaire would make an estimated additional €50-100 in annual fees but in the meantime they are losing hundreds and hundreds of euros per annum in lost credit card commissions when I use the Swiss credit card instead!
It’s commercial nonsense.
But one thing I’ve learnt in 23 years of owning a holiday home in southern France is that you can’t tell a French bank that they have the wrong approach.
They stubbornly carry on, oblivious to their financial loss, providing poor service, but convinced that they know best. I’ve given up with them. I need a French bank account to pay the French property bills and a bit of holiday spending money.
But when it comes to serious banking, best look abroad in the Eurozone.
Tim Spencer, by email
What is your experience of banking in France? Do the spending limits cause you problems? Share your experience at letters@connexionfrance.com
