UK holidaymakers’ now face a fresh wave of card fees when using their debit or credit cards abroad. uSwitch.com claim that £22.4 billion will be spent on overseas credit transactions. This comes after British taxpayers have had no option but to pay for the incompetence and inherent greed of banks. It is important to be aware of the costs of credit transactions before buying abroad.
How Much Does Using a Credit Card Abroad Cost?
The overwhelming majority of providers are now charging a card fee for using a debit or credit card abroad. Whilst Abbey National and Royal Bank of Scotland each charge £1.25, Halifax charges as much as £1.50 for each credit transaction. Louise Bond, of Uswitch said: “With an average charge per debit card purchase of £1.13, netting the industry £148 million per year, more and more providers look set to jump on this lucrative bandwagon.”
Banks Cash-in on Overseas Credit Transactions
Nationwide once advertised the fact that card fees wouldn’t be charged to customers when buying abroad, but even they have started to cash-in on credit transactions outside of Europe. Latest figures from Uswitch.com show that UK holidaymakers’ will now be charged a 3% fee for using their credit card abroad. International credit transaction fees are due to net the banks approximately £754 million this year, representing an increase of 6% compared to last year.
What Are the Fees on the Use of Credit Cards Abroad?
Lloyds TSB – 2.95%
Halifax – 2.95%
Barclaycard – 2.75%
Thomas Cook – 2.5%
Nationwide – 1%
Post Office – Free
As it stands, the Post Office is the only provider not to impose card fees for either overseas credit transactions or cash withdrawals from an ATM. UK holidaymakers are advised to use the free service of the Post Office to encourage other financial institutions to amend their policy.
Credit card fees have already increased costs for UK holidaymakers’. Factor-in these costs when picking up a bargain or considering switching to the Post Office. If making a withdrawal from an ATM, make a larger withdrawal to minimise fixed card fees. This is clearly preferable to making a succession of small withdrawals.