March 9th, 2009, 21:31
I saw this in the press recently:
Nationwide has shocked its customers by introducing charges for using its credit and debit cards outside the EU. Find out what it means for travellers, and how you can reduce your credit card expenditure while youтАЩre abroad
Remember that advert for Nationwide тАУ you know, the one where the manager of a nasty other bank justifies charging customers for using their credit or debit cards overseas?
Well, weтАЩre not likely to see it again. The building society has announced that from 6 May it will charge a fee of 0.84% for each Visa credit card transaction in most non-EU countries.
An identical fee will be imposed on Visa debit card transactions from 1 June, before both rates are increased to 1% on 1 July тАУ just in time for the peak holiday season.
MasterCard to follow?
While the changes wonтАЩt immediately include the companyтАЩs FlexAccount cards, which are provided by MasterCard, itтАЩs likely that these will become subject to a fee in due course.
Elsewhere, Thomas Cook is also introducing a similar charge. From 18 April, the company will charge a foreign exchange fee on overseas purchases, plus an extra handling fee of 2.99% on cash withdrawals.
Nationwide has defended its decision to pass on the Visa charges to customers. Spokesman Steve Blore highlighted the need to тАЬmaintain the balance between offering competitive products while ensuring they are sustainable in the long termтАЭ.
He also pointed out that the companyтАЩs cards remain free of commission and confirmed that customers using their cards in Europe will not be subject to charges, as the Visa fee is not applicable in the EU.
Not surprisingly, consumer advocates have criticised the move. Martyn Saville of Which? described it as тАЬincredibly disappointingтАЭ. He added that тАЬNationwide had been a shining light to the credit card industry with its no-fee policy on overseas purchases тАУ itтАЩs a shame theyтАЩve now sold outтАЭ.
Saville also pointed out that AbbeyтАЩs Zero card and the Post Office credit card are now the only cards not to charge extra fees for foreign transactions.
Nationwide has shocked its customers by introducing charges for using its credit and debit cards outside the EU. Find out what it means for travellers, and how you can reduce your credit card expenditure while youтАЩre abroad
Remember that advert for Nationwide тАУ you know, the one where the manager of a nasty other bank justifies charging customers for using their credit or debit cards overseas?
Well, weтАЩre not likely to see it again. The building society has announced that from 6 May it will charge a fee of 0.84% for each Visa credit card transaction in most non-EU countries.
An identical fee will be imposed on Visa debit card transactions from 1 June, before both rates are increased to 1% on 1 July тАУ just in time for the peak holiday season.
MasterCard to follow?
While the changes wonтАЩt immediately include the companyтАЩs FlexAccount cards, which are provided by MasterCard, itтАЩs likely that these will become subject to a fee in due course.
Elsewhere, Thomas Cook is also introducing a similar charge. From 18 April, the company will charge a foreign exchange fee on overseas purchases, plus an extra handling fee of 2.99% on cash withdrawals.
Nationwide has defended its decision to pass on the Visa charges to customers. Spokesman Steve Blore highlighted the need to тАЬmaintain the balance between offering competitive products while ensuring they are sustainable in the long termтАЭ.
He also pointed out that the companyтАЩs cards remain free of commission and confirmed that customers using their cards in Europe will not be subject to charges, as the Visa fee is not applicable in the EU.
Not surprisingly, consumer advocates have criticised the move. Martyn Saville of Which? described it as тАЬincredibly disappointingтАЭ. He added that тАЬNationwide had been a shining light to the credit card industry with its no-fee policy on overseas purchases тАУ itтАЩs a shame theyтАЩve now sold outтАЭ.
Saville also pointed out that AbbeyтАЩs Zero card and the Post Office credit card are now the only cards not to charge extra fees for foreign transactions.