BANKS are raising the costs of using cards abroad in the run-up to the summer holidays.
They are adding to the charges for using credit cards for overseas transactions and to the costs for withdrawing money from cash machines.
As much as £6 in every £100 is going to some banks and industry analysts say the total figure for the charg
es was more than £300m last year and will be approaching £500million for 2007.
Each time a card is used to make a purchase or withdraw cash overseas, at least one and sometimes two fees are added.
Halifax is increasing the charge it takes from overseas credit card purchases from 2.75% of the value to 2.95%. This means that for every £100 spent in a shop or restaurant, the bank will charge £2.95.
The Halifax is also putting up the cash withdrawal charge from 2.5% to 3% of the value.
Once a second fee is added, someone taking the equivalent of £100 out of cash machine would be charged £5.95. Most of the bank's customers will see the increase from the start of August.
Lloyds-TSB is increasing the charge on its debit cards from 2.75% of the value of purchases to 2.99%. Once a second fee is added, it will cost a customer £4.99 to take £100 out of a hole-in-the wall machine overseas.
NatWest has increased the debit card charges from 2.65% to 2.75%. It has also increased one of two fees that apply to purchases from 75p per transaction to £1.25. Others such as Morgan Stanley have pushed up charges to cash in on the use of cards overseas.
Eddy Weatherill, of the Independent Banking Advisory Service, said: "These fees for using cards overseas are just one of many stealth charges used by the banks,
"Generally, the charges are hidden away in the statement small print rather than being spelt out. Many people do not even know they are being charged when using their cards overseas."
A year ago, the banking industry was told to cap credit card penalty charges, which used to be as much as £25 for missing a payment, to a maximum of £12.
Some providers, such as the Nationwide and the Post Office, do not impose charges on the use of debit cards overseas.
The Nationwide's divisional director, Jeremy Wood, said: "People who are planning to go abroad over the next few months should be aware of the hidden charges that most card providers impose."
A Halifax spokesman said: "We are just making a tweak to our terms and conditions. We are writing to customers to inform them. We are bringing our charges into line with other providers."
