Skiers warned about using credit cards abroad

Nationwide Building Society warns skiers to be aware of the danger of being caught out by the costly practice of Dynamic Currency Conversion (DCC).

During last year's ski season, Nationwide credit card customers wasted over £34,000 at just four of the most popular European ski resorts. November to March is the most popular time of the year for skiers to hit the slopes. The number of people in the UK who ski or snowboard has risen to more than 1.3 million.

DCC is an optional service provided by individual retailers or at ATMs. It gives cardholders the option to pay in either the currency of the country they are visiting or pounds sterling. If the cardholder opts to pay in sterling they will be subject to a conversion rate decided by the retailer. If they choose to pay in the local currency non-Nationwide cardholders may incur foreign usage charges but, at around 2.75%, this may still be the cheaper option. For example if a family of four paid for ski hire and passes for one week totalling around £1,000 while abroad and were caught out by DCC, they could end up paying an additional £274.

Nationwide is one of the few high street financial organisations that does not charge any fees for card use abroad. Therefore, Nationwide customers should always pay in the local currency. Unlike Nationwide customers, cardholders who bank elsewhere face a more complicated choice; they would have to know what foreign usage charges they would incur from their card provider and in addition they would have to find out the VISA rate for that day and compare this to the sterling rate being offered by the retailer.

Nationwide director, Jeremy Wood said: "With over 1.3 million UK people hitting the slopes last year and £34,000 being wasted in just four European ski resorts, dynamic currency conversion has the potential to affect a large number of people. Although Nationwide customers benefit from free card use abroad they could still be caught out with unnecessary charges, which holidaymakers can ill-afford at this, or at any time of the year. We would advise people to check any slip or bill before signing, or entering their PIN. Nationwide customers should ask to be billed in the local currency to protect free card use abroad."