Travel News > February 2008 > "Banks charge travellers over the odds while abroad"

"Banks charge travellers over the odds while abroad"

07/02/2008

Holidaymakers using their credit and debit card abroad could face high bank charges each time they use it, according to a source.

The Daily Mail has reported that British travellers pay £535 million each year in fees from banks when abroad.

Taking £100 out of an ATM machine can cost £4.50 every time, with some banks only making this clear in the small print.

Credit card charges are also high, with it costing up to £5.75 to get £100 cash out and an average cost of 2.75 per cent on any purchases made.

Which?, the consumer group, said: "Customers are hit with exorbitant charges for services which cost the banks next to nothing.

"The maximum it costs a bank to process a foreign card transaction is 1.5per cent of the sum involved. But most add 2.75 per cent to each bill."

Nationwide has warned today that holidaymakers should also be wary of shops abroad determining a low exchange rate when they choose to pay in British pounds.

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