Don't feel the cost of love this Valentine's day

This Valentine's Day, Nationwide Building Society warns couples not to make the same mistake as last year and instead avoid unnecessary charges while using their card abroad. The Society highlights some money saving tips to help couples to keep costs to a minimum.

Valentine's Day is worth over two billion pounds in the UK, with around one in ten treating a loved one to a romantic break each year. Nationwide estimates that last February its credit card customers wasted over £27 million in unnecessary foreign loading charges and urges customers to abide by the following money saving tips:

Use a Nationwide credit card - Nationwide is one of the few financial organisations to offer free card use abroad, saving travellers millions of pounds each year. Most lenders charge a loading fee of nearly 3% (the average is 2.75%) when consumers spend abroad with their credit or debit card.

Avoid foreign usage fees on debit cards - Many providers charge a fee for every purchase made using a debit card, no matter how small. Halifax, for example, charges £1.50 (on top of a 2.75% foreign loading fee) for every debit card purchase and cash withdrawal, costing a Halifax customer £7.50 for using the card on just five occasions. When also taking the foreign usage loading into consideration this would cost a Halifax customer £1.77 every time they spend £10.

Use the right card when drawing cash - Charges for withdrawing money from a cash point using a credit card can be as high as 3%, or a minimum of £3 (this is in addition to foreign currency loading fees). Consumers should avoid this fee by using a debit card, however many still impose a foreign usage charge. Nationwide FlexAccount cardholders benefit from free cash withdrawals abroad with no foreign currency loading.

Don't get caught short with Dynamic Currency Conversion (DCC) - DCC is where a retailer or ATM gives the cardholder the option to pay in sterling or local currency. 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.

As Nationwide credit or debit cardholders are not charged foreign currency loading fees, it advises all of its customers to always pay in the local currency. Cardholders who bank elsewhere face a more complicated choice. The Society recommends that people check any slip or bill before signing, as this provides information on conversion rates and any fees charged, allowing consumers to make an informed choice.

Jeremy Wood, divisional director at Nationwide, said: "Couples who are planning to go abroad for a romantic getaway this Valentine's Day should be aware of the hidden charges that most card providers impose, which are both costly and unnecessary. Anyone using a Nationwide FlexAccount or credit card will not be charged any foreign usage fees on purchases and will therefore have extra money to enjoy while on holiday."