If you’ve come back from a trip abroad and taken a look at your credit card bill, some of the fees and charges added may bring a tear to your eye.
You can do little about the exchange rate, but when fees for making cash withdrawals from an ATM machine are added to a ‘loading fee’ it is clear that looking at ways to keep these charges to a minimum will help.
A first step could be making sure you don’t withdraw cash and instead spend on the card. You might still face a 2.75 per cent loading fee, but some card companies do not charge this.
Nationwide’s credit card doesn’t apply a foreign exchange loading fee when you make a purchase or withdrawal, so if you pay off the amount borrowed in full each month you can save.
Recently, though, the Post Office has announced it will not charge a loading fee at all on its credit card, for both purchases and cash withdrawals, although you will still face a fee for using an ATM machine abroad.
Gary Fitton, head of Post Office credit card, said: “Most credit cards charge 2.75 per cent on every transaction made overseas. People become frustrated when they see it is costing them more to use their credit card abroad. We have listened to this and we have acted, now our customers have got one of the best deals going.”
This deal is currently only available to new applicants but the Post Office has said the quashing of the lending fee will be applied to all cardholders within the next few months.