Overseas card charges 'on the up'

Travellers have been urged to be extra careful if they plan to use their credit and debit cards overseas this year as bank charges are on the increase.

Foreign exchange company Caxton FX revealed that fees for overseas transactions currently stand at around £754 million a year, six per cent more than in 2008.

The number of banks that charge their customers for using cards abroad has increased twofold since last year, according to comparison site uSwitch.

With an average fee of £1.13 every time a card is used for a withdrawal or to make a transaction, banks reportedly receive £148 million in revenue from the charges, which rises to £401 million with additional fees included.

Halifax, Bank of Scotland and Intelligent Finance all charge £1.50 each time a customer uses a debit card abroad, while credit card fees for withdrawals are even higher, according to Caxton FX.

The exchange firm advised travellers planning affordable holidays to use a pre-paid foreign currency card to cover their planned purchases abroad. The cards are available from financial service providers including Caxton, Travelex and the Post Office.

Posted by Kate, 16 April 2009 15:20

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