Natwest Debit Cards

[taxexile]

NatWest raises cost of using a debit card abroad by 66pc

16.04.07

NatWest customers are facing higher charges for using their debit cards abroad

NatWest is to hike its charges by up to 66 per cent for holidaymakers using debit cards abroad.

They will go up on June 1, weeks before the summer holiday season begins.

An "exchange rate transaction fee" is levied every time a customer uses a debit card to withdraw cash or make a "point-of-sale" transaction, such as paying a hotel bill.

This will rise from 2.65 per cent to 2.75 per cent of the total. In addition, for point-of-sale transactions a one-off fee of 75p will rise to £1.25, an increase of two thirds.

The move is likely to be followed by other banks raising their fees to squeeze more money from customers.

Debit cards are hugely popular. Official figures show there are 67million in Britain, equal to more than one per adult.

The increase will anger holidaymakers and business other foreign travellers who rely on their debit card while they are abroad.

Rather than carry cash, which is risky, they use their debit card, often several times a day, to do everything from withdraw cash to paying bills.

Martin Lewis, founder of MoneySavingExpert, the personal finance website, said: "NatWest customers should not use their debit cards abroad. It is a very expensive way to spend, and can be worse than using a credit card.

"Credit and debit cards are about constantly marketing on headline rates and thinking of ways to sneak in charges."

The consumer watchdog, the Independent Banking Advisory Service, said the increase was "obscene". A spokesman said: "It does not cost that amount to process these transactions."

NatWest, owned by the Royal Bank of Scotland, insisted yesterday that the majority of its customers will be better off.

It added that fees for overseas debit card transactions have been frozen since 2001.

The most common overseas transaction using a debit card is to withdraw cash, according to the bank. On June 1, this charge will drop from 2.25 per cent to two per cent, subject to a minimum of £2 and a maximum of £5.

A spokesman said: "The vast majority of all overseas debit card transactions by NatWest customers are cash withdrawals of £100 or more. These will be cheaper under the new fee structure."

SKY NEWS

[Steve2UK]

Phew! Nearly gave me a seizure............. I misread the title as NatWIDE instead of NatWEST

Can't believe how many UK travellers/expats continue to pay through the nose for these transactions - getting a Nationwide or equivalent no-fee account card should be at/near the top of everyone's list of things to do before making the trip.

[PhilHarries]

An "exchange rate transaction fee" is levied every time a customer uses a debit card to withdraw cash or make a "point-of-sale" transaction, such as paying a hotel bill.

This will rise from 2.65 per cent to 2.75 per cent of the total. In addition, for point-of-sale transactions a one-off fee of 75p will rise to £1.25, an increase of two thirds.

The most common overseas transaction using a debit card is to withdraw cash, according to the bank. On June 1, this charge will drop from 2.25 per cent to two per cent, subject to a minimum of £2 and a maximum of £5.

A spokesman said: "The vast majority of all overseas debit card transactions by NatWest customers are cash withdrawals of £100 or more. These will be cheaper under the new fee structure."

Excuse me if I'm a bit dense on this one but aren't these two statements contradictory? The first says it will cost more to withdraw cash and the second says it will cost less.

Also I don't get the 66% increase.

At present on say a 100GBP cash withdrawal they levy 2.65% + 0.75 = 3.40

From June 1 this becomes 2.75% + 1.25 = 4.00

An increase of 18% (still a bluddy cheek considering the pityfull interest rates on checking accounts). Okay the increase in the fee is 66% but if people are using these cards for many small purchases they need to rearrange their MO and carry a little more cash around with them.