How banks are giving customers a £686m holiday hangover by increasing charges for using cards overseas

Source: Daily Mail UK

BIll, please: But paying by plastic overseas can incur transaction costs and be subject to manipulated exchange rates

Over the past year, many big banks have been pushing up the fees they charge every time a customer uses a card to buy a meal, pay a hotel bill or make a cash withdrawal abroad.

The charges are often hidden away by banks' manipulation of currency exchange rates.

Overseas debit card transactions total £10.4billion a year, with banks raking in £318million in fees.

Overseas credit card transactions are worth £12.3billion ? giving banks another fee bonanza of £368million.

Price comparison website uSwitch.com warned that the sums involved are increasing.

Mike Naylor, personal finance expert at uSwitch, said: "Charging a fee for every purchase made overseas on a debit card is a lucrative bandwagon.

"On a two-week holiday it's not unfeasible for someone to pay for 14 meals with a debit card ? with a transaction charge of up to £1.50 for each use, the charges could soon add up to £21, with foreign exchange fees on top."

It is possible to avoid the fees by shopping around.

For example, the Nationwide offers a debit card where there is no fee for cash withdrawals or purchases.

The Post Office also offers cards without fees.

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