Be wary when withdrawing your cash abroad

A recent consumer complaint has highlighted just how expensive it can be for UK consumers to gain access to their own cash when they go abroad.

Banks in the UK are charging hefty commissions and fees for customers to gain access to their own money, and consumers should consider other options when travelling abroad, such as taking traveller’s cheques or making payment for purchases by card rather than making withdrawals, so that they can try and avoid the pinch of paying for access to their own cash.

One Barclay’s Bank customer, Evan Harding, aged twenty nine, recently went to Australia to scope out properties, as he plans to move there next year. He used his Barclays Connect card to make withdrawals. The card charges a two and three quarter percent conversion fee, and a foreign transaction charge of two percent with a minimum one pound fifty charge. After returning from Australia and checking his bank statement, Harding realized that he had been charged a whopping eighty five pounds by the bank simply for taking out his own cash whilst he was on holiday.

Evan stated: 'I was withdrawing £100 at a time and was being charged a fee and commission each time. I think I made around 14 withdrawals and it was costing me £5 each time just to get access to my cash. Plus I made several purchases on the card and was again charged each time.'

Many consumers have found themselves in the same type of situation, returning from their holidays abroad only to find that they have been charged a fortune by their bank simply for accessing their own money.

According to recent figures, banks are netting around six hundred million pounds a year in the UK simply by charging these extortionate fees when consumers use their cards to make cash transactions and withdrawals abroad. The rates can vary from one bank to another, so those that travel regularly and want to continue using their card to make cash withdrawals may benefit from comparing the fees and rates charged by a number of banks for this type of transaction.

Tom Smith
21.03.07