Easter holidaymakers could be hit with card fees

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Easter holidaymakers could be hit with card fees

Wed 19th Mar 2008

As thousands of Brits prepare to head abroad this Easter, research from uSwitch.com has revealed that nine major banks now charge an average debit card transaction fee of £1.19 for purchases made overseas.

Consumers are charged an average fee of three per cent for using their cards abroad, netting the industry £65 million a year.

Some £10.4 billion worth of overseas debit card transactions take place annually, while £12.3 billion is spent on credit cards abroad every year.

The website estimates that the average cost to banks of customers using their cards abroad is around one to 1.5 per cent, considerably lower than the exchange rate loading fees they charge consumers.

Mike Naylor, personal finance expert at uSwitch.com, recommends that "at the very least, consumers should make sure that they are fully aware of the additional charges involved when they use their card overseas".

He also suggests applying for a Nationwide debit card, which does not charge for purchases or withdrawals overseas, or Nationwide or Post Office credit cards which do not charge exchange rate loading fees.

Nationwide estimates that by not charging customers for using their cards abroad, it has saved them around £3 million since last Easter.

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