In anticipation for the holiday season, UK banking firm NatWest is set to increase its debit card purchase for every overseas transaction by 66%, This is Money has reported.
Effective as of June 1, 2007, the move will see the bank raise its overseas debit card purchase charge from GBP0.75 to GBP1.25. In addition to this, the maximum fee for cash withdrawals will rise by GBP1 to GBP5, and, according to This is Money, the exchange rate transaction fee will rise from 2.65% to 2.75% of the total purchase price.
As online comparison site uSwitch.com points out, the move could rake in an additional GBP10.2 million for the bank.
Warning travelers about the rise in fees, Nick White, director of financial services at uSwitch.com, stated: Customers of NatWest who travel abroad need to think seriously about switching to a card which offers a much better deal for overseas cash withdrawals and purchases. Nationwide’s debit card is the best solution for spending abroad, as it does not charge cash withdrawal, transaction or exchange-rate loading fees on foreign transactions.
In the long term, it may end up being more sensible for some consumers to have two separate cards – one for UK use and one for overseas spending. I would recommend that NatWest customers make sure they use a different card abroad after June 1, 2007 or they may face a nasty surprise when they return from their trip.