Overseas card fees costing 'millions'

19 March 2008

Consumers using their credit cards abroad in the summer will be hit by transaction fees of £368 million, according to uSwitch.com.

Additionally, debit card users are likely to be billed £318 million for the use of such services, bringing the total price to £686 million, it said.

When overseas, credit card customers' actions are worth £12.3 billion as 145 million transactions are completed overall.

Personal Finance Expert at uSwitch.com Mike Naylor claimed that the charges are a "lucrative" bandwagon for service providers.

"The ever-increasing plethora of overseas fees and charges on debit and credit cards could leave consumers with a holiday hangover if they don't do their homework before boarding the plane," he commented.

He added that current exchange rate loading fees - those tagged onto the payments and withdrawals made abroad - are too steep.

In related news, Credit Action recently said that it is difficult for consumers to understand credit card deals because they are advertised in percentages.

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