Holidaymakers waste more than £350 million a year on bank charges for using credit and debit cards abroad, research has claimed.

People who use their plastic overseas are typically charged a foreign transaction commission of 2.75 per cent, according to Nationwide Building Society.

In addition, customers also pay between 1.5 per cent and two per cent of the amount they withdraw each time they use an ATM abroad.

Britons spent more than £13 billion on credit and debit cards while they were overseas in 2002, meaning they paid more than £350 million to their card providers in foreign transaction commission.

With the average overseas transaction being about £70, people were paying almost £2 in charges every time they used their debit or credit card to buy something.

Nationwide, which does not charge foreign transaction commission, advised holidaymakers to check the new credit card summary boxes, which are being introduced this year, to see if their provider levied the charges.

The new boxes will contain details on interest rates and charges in a standard format to make it easy for consumers to compare different providers.

Meanwhile Lloyds TSB announced it would be offering commission-free foreign currency charging to both customers and non-customers during 2004.

Tuesday January 13, 2004