Banks making £1 billion a year in 'holidaymaker rip-off'

PA

British holidaymakers are being 'ripped off' by huge bank charges when using credits cards abroad, says new research.

Consumer watchdog Which? has revealed that it can cost up to £2.51 to withdraw 20 euros (£16.92) at an ATM (Llyods were named and shamed as this offender).

Meanwhile, buying a bottle of wine for £5 could cost up to £1.64 - that's if you use a Halifax card, which charges 29% more than its rivals HSBC and Barclays, according to the Express.

Which? suggests that these fees are not often made obvious to the consumer and, with Britons spending £20.3 billion on debit and credit cards and £7.2 billion in cash abroad in 2010, the watchdog estimates banks are making around £1.1 billion.

Which executive director Richard Lloyd told the Express: "Banks are charging exorbitant fees for overseas transactions."


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