MILLIONS of customers at a well-known high street bank will now be charged to use their debit cards abroad.
Metro Bank has introduced a 2.99% fee on all overseas debit card transactions from today, including in popular tourist destinations such as Spain, Portugal and Turkey.
The fee has been added to every individual transaction made outside the UK, which could significantly add to the cost of your holiday.
For example, if you spent £500 on the card during a family holiday you would pay £14.95 in fees.
If you withdraw cash from an ATM, the fees are even higher.
Holidaymakers will now be charged the 2.99% fee plus an additional £1.50 to withdraw cash from an ATM while on holiday.
This means that if you take out £200 worth of foreign currency, you would pay £7.48 in fees.
In July, The Sun exclusively revealed that Metro Bank had emailed customers to make them aware of the changes.
The email sent on June 27 read: “After August 29, 2024, debit card payments made in a foreign currency outside the UK will be charged 2.99% on the converted British Pound value of the transaction.
“After August 29, 2024, cash withdrawals made in a foreign currency using your debit card outside the UK will be charged 2.99% on the converted British Pound value plus a £1.50 ATM fee.
“This charge is applicable for each transaction you make.”
A spokesperson for Metro Bank said: “Over time we’ve seen our customer’s needs and expectations evolve and the demand for this service has been declining over a number of years.”
It comes just weeks before Metro Bank axes all consumer credit cards on September 10.
Many high street and challenger banks offer ways for customers to spend abroad without paying fees.
However, some banks only allow customers to spend on their debit cards without paying a fee in Europe, while others have no fees anywhere in the world.
You’ll need to check your debit or credit card’s terms and conditions to ensure you don’t get caught out when on holiday.
First Direct does not charge customers to use their debit card to make a payment in a foreign currency or to make a cash withdrawal in another country.
But there is a daily limit of £500 (or the equivalent in foreign currency) to withdraw cash from over one million ATMs.
Holidaymakers with a HSBC Global Money Account can spend abroad and withdraw money from cash points without paying a fee.
The account is available to HSBC customers who have an active current account and use its banking app.
The high street giant charges other customers 2.75% for spending abroad, and 2.75% plus a fee of 2% for cash, up to a maximum fee of £5.
Lloyds Silver and Platinum account customers can now use their debit card anywhere in the world free of charge after the bank removed its overseas fees on July 1.
But the Silver Bank Account costs £11.50 a month while the Platinum option costs £22.50 a month.
Customers of digital bank Monzo can pay anywhere in any currency on their debit card with no foreign transaction fees.
If Monzo is your primary bank account then you can make unlimited fee-free withdrawals in the European Economic Area (EEA) and can take out up to £200 every 30 days anywhere else.
After this threshold, the bank charges 3%.
If you have a Santander Edge, Santander Edge Up and Private Account then you can withdraw money fee-free and you will not need to pay foreign transaction fees on overseas spending.
All other accounts with Santander charge 2.95% for purchases and withdrawals.
The digital-only bank does not charge tourists to use their debit cards while on holiday.
Those with a TSB Spend and Save Plus account will not pay fees on debit card transactions worldwide.
All other TSB customers will pay 2.99% in fees on transactions and 1.5% fees on any money withdrawn.
There are no fees for making a cash withdrawal in Euros from a cash machine in an EEA country.
The account charges £3 a month but this is waived when you make 20 debit card payments each calendar month.
Holidaymakers with a Virgin Money M Plus account will not be charged for using their debit cards abroad but the bank has warned that some ATMs may still charge a fee.
If you are exchanging cash for a foreign currency, make sure to shop around and buy in advance.
It’s best not to use the Bureaus De Change in the airport, as they offer some of the worst rates on the market.
THERE are a number of other specialist cards that can give you a great exchange rate and fee-free spending and cash withdrawals when abroad.
These cards include credit cards and pre-paid cards, which allow you to pay abroad without fees or at a set exchange rate.
Travel credit cards
Travel credit cards allow you to spend money abroad without being hit by any fees or hidden charges.
But, they may still charge you for taking cash out.
We recommend the Barclaycard Rewards Visa because it doesn’t charge for using it abroad, and there are no fees for withdrawing cash if you pay off your bill in full each month.
You must always pay off your balance before the end of the month with these cards to ensure that any money you save isn’t wiped away by paying interest.
Prepaid card
An alternative to carrying cash or your debit card around is to get a pre-paid card.
Brands like Revolut, Wise and EasyFX all provide prepaid travel cards.
HSBC launched its Zing subsidiary in January 2024, which gives existing and non-HSBC customers access to a prepaid debit card without fees.
The card can hold up to 10 currencies and be used in more than 200 countries.
These cards allow you to put a set amount of cash on the card at a fixed exchange rate.
So if the rate is good now you can put money on your card, and it will stay that rate when you are on holiday.
But, these cards can sometimes have hidden costs and charges so be sure to read the small print.
