Be careful when using your NatWest card abroad

Consumers with a NatWest card who are thinking of heading off on their summer holidays in the next few months are being urged to watch out for increased fees.

The bank will be increasing its foreign transaction rates by a significant amount from the beginning of June, which means that holidaymakers with plans to use their cards to make transactions abroad are likely to be hit with some pretty hefty fees.

It is thought that the NatWest will net an additional ten million pounds as a result of these increases, and these profits will come as a result of consumers being charged extortionate rates simply for using their own money in another country. The new fee structure will make the NatWest the most expensive bank out of the Big Five when it comes to using a card abroad – consumers are urged to look at other options, such as traveller's cheques, which could reduce the need to use the card whilst on holiday.

Every time the NatWest card is used abroad consumers will be charged £1.25, and obviously the more you use it the more you are going to accrue in charges – for many this will mean a big shock when they see their next statement. The bank is also increasing its exchange rate fee to 2.75% for every purchase made abroad. On top of all this the ceiling limit on cash withdrawals that are made abroad will be raised to five pounds, so all in all NatWest customers could find it very expensive to rely on plastic when they head off on their holidays.

A Uswitch spokesman expressed his disappointment at the increased fees, stating:  "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."

Tom Smith
18th May 2007