Credit card fees introduced for LV cardholders : Credit Card Guide

Credit card fees introduced for LV cardholders

Credit card holders with Liverpool Victoria will see one of the card's most beneficial and popular features disappear next month, as from the end of September these cardholders will be charged a 3% foreign currency loading charge for using their cards abroad.

In the past customers have been able to enjoy the benefit of being charged no fee for using their cards within European Union destinations, but this will now be coming to an end for these consumers.

Although many holidaymakers will have already been on their summer breaks, and will therefore manage to avoid these charges for this year's summers holiday, those taking an autumn or winter break, and those travelling abroad in the future will now have to face this 3% fee. The charges will take effect from 27th September.

Existing Liverpool Victoria cardholders can still use their cards, but the company no longer issues credit cards through its own division. It sold its credit card sector to Goldfish last year. This is one of a number of credit card companies that has raised foreign fees over recent months, with experts predicting that this is yet another way to credit card companies to claw back money lost from capped penalty fees.

With regards to the charges often applied for foreign transactions by credit card companies one industry official stated: 'People will not realise many of these charges because they are hidden and not part of the advertised, up-front costs.' There are a number of other card issuers that have hiked up foreign charges recently, and this includes Intelligent Finance and Bank of Scotland, which both raised their fees from 2.75% to 2.95%.

Tom Smith
26th August 2007

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