Overseas bank charges “exorbitant”
Some banks are charging exorbitant fees for overseas transactions with the details of their fees often hidden away on websites or undisclosed on statements.
Which? is making the claim, having recently put the UK’s seven biggest banks and building societies to the test to see which offers its customers the best deal for transactions abroad.
The consumer group’s researchers went to Calais and compared the amount charged by each bank for the same €5.95 debit card purchase and a €20 ATM withdrawal.
Norwich and Peterborough’s (N&P) Gold Light current account came out on top, while Halifax charged 33% more than N&P for the supermarket purchase.
Even when compared to its high street rivals, Halifax’s fees for overseas purchases were much higher – charging 29% more than both HSBC and Barclays.
Which? points out that additional fees can make card purchases very expensive.
For example 10 transactions of £50 made with a Halifax debit card would cost the cardholder £28.75, whereas the same 10 transactions made with N&P would be free.
Which? experts also found it difficult to calculate how the foreign loading fees had been calculated using bank statements alone, as HSBC, Halifax and Lloyds TSB include their foreign loading fee as part of the exchange rate.
The group’s executive director, Richard Lloyd, says: “Banks are charging exorbitant fees for the most straightforward overseas transactions, pushing up the price of even the most basic purchases.”
He adds: “We want to see overseas bank charges made clear to consumers when they sign up for their current account or credit card.”
Category: Banking News, Halifax News
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