Natwest to increase overseas debit card purchase fees

Nick White, Director of Financial Services at independent price comparison and switching website, uSwitch.com, comments on NatWest’s latest move to increase their debit card purchase fee for overseas transactions:

“Natwest’s latest announcement to increase overseas debit card purchase fees from 75 pence to £1.25 – an increase of 66% from June 1st – is timed perfectly to cash in on the forthcoming holiday season. This is the latest in a long line of fees that banks are now charging to try and squeeze more money from their loyal customers and follows closely after the RBS group’s decision to charge credit card customers £12 if they move house and do not update address details.

“uSwitch.com estimates that this move could rake in an extra £10.18 million for the bank - a savvy move by Natwest if customers do not read the small print and continue to use their debit card abroad. As well as the increased debit card purchase fee, the maximum fee for cash withdrawals for customers has also risen by £1 to a maximum of £5.

“Customers of Natwest who travel abroad need to think seriously about switching to a card which offers a much better deal for overseas cash withdrawals and purchases. Nationwide’s debit card is the best solution for spending abroad, as it does not charge cash withdrawal, transaction or exchange-rate loading fees on foreign transactions.”

Research released earlier this month from uSwitch.com, the independent price comparison and switching website, revealed that British holidaymakers will be charged £355 million when they use their credit cards overseas this year. uSwitch.com estimates that UK consumers will be charged £204 million on credit card purchases and £151 million withdrawing foreign currency with their credit cards from cash machines.

Nick White concluded: “In the long term, it may end up being more sensible for some consumers to have two separate cards - one for UK use and one for overseas spending. I would recommend that NatWest customers make sure they use a different card abroad after June 1st, or they may face a nasty surprise when they return from their trip and see the higher charges levied on their next statement.”