Credit card users ‘needlessly wasting millions’

UK holidaymakers lose in excess of £326 million every year as banks and building societies unnecessarily charge them for using their credit and debit cards overseas, it has been revealed.

Figures produced by UK payments association Apacs show £12.3 billion worth of transactions were made on credit cards overseas last year, with customers estimated to have been billed £326.2 million for this privilege, based on an average charge of 2.75 per cent.

Indeed, Nationwide divisional Director Jeremy Wood points out that many credit card providers have actually increased their charges for overseas transactions recently.

For instance, Lloyds TSB is to raise the charge on its debit card from 2.75 per cent to 2.99 per cent and NatWest has effectuated a similar hike from 2.65 per cent to 2.75 per cent.

Meanwhile, Mr Wood has highlighted the fact that Nationwide’s credit and debit cards are fee-free when used abroad.

“People who are planning to go abroad over the next few months should be aware of the hidden charges that most card providers impose which are both costly and unnecessary,” he commented.

“Anyone using a Nationwide debit card or credit card will not be charged any foreign usage fees and will therefore have a little more money to help them enjoy their holiday.”

However, a charge is applicable for ATM withdrawals when using Nationwide products in foreign countries.

Tags: foreign usage fees, nationwide divisional director, Credit card users, anyone, Jeremy Wood, year, divisional Director