NatWest raises cost of using a debit card abroad by 66pc

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

They will go up on June 1, weeks before the summer holiday season begins.

An "exchange rate transaction fee" is levied every time a customer uses a debit card to withdraw cash or make a "point-of-sale" transaction, such as paying a hotel bill.

This will rise from 2.65 per cent to 2.75 per cent of the total. In addition, for point-of-sale transactions a one-off fee of 75p will rise to £1.25, an increase of two thirds.

The move is likely to be followed by other banks raising their fees to squeeze more money from customers.

Debit cards are hugely popular. Official figures show there are 67million in Britain, equal to more than one per adult.

The increase will anger holidaymakers and business other foreign travellers who rely on their debit card while they are abroad.

Rather than carry cash, which is risky, they use their debit card, often several times a day, to do everything from withdraw cash to paying bills.

Martin Lewis, founder of MoneySavingExpert, the personal finance website, said: "NatWest customers should not use their debit cards abroad. It is a very expensive way to spend, and can be worse than using a credit card.

"Credit and debit cards are about constantly marketing on headline rates and thinking of ways to sneak in charges."

The consumer watchdog, the Independent Banking Advisory Service, said the increase was "obscene". A spokesman said: "It does not cost that amount to process these transactions."

NatWest, owned by the Royal Bank of Scotland, insisted yesterday that the majority of its customers will be better off.

It added that fees for overseas debit card transactions have been frozen since 2001.

The most common overseas transaction using a debit card is to withdraw cash, according to the bank. On June 1, this charge will drop from 2.25 per cent to two per cent, subject to a minimum of £2 and a maximum of £5.

A spokesman said: "The vast majority of all overseas debit card transactions by NatWest customers are cash withdrawals of £100 or more. These will be cheaper under the new fee structure."