Credit card firms 'charge UK travellers too much'
Consumer Focus has criticised credit card companies for charging UK consumers too much when they spend money abroad.
Credit card firms 'charge UK travellers too much'”
Credit card companies have come under fire from Consumer Focus for charging consumers too much in fees.
The regulator pointed out that the withdrawal fees banks and credit card providers charge consumers do not reflect actual costs.
A debit card payment costs an average of 9p to process and a credit card payment costs just 37p, yet charges for buying currency with a card are typically 1.5 to two per cent of the amount converted (up to a ceiling of £4.50).
Mike O'Connor, chief executive of Consumer Focus, said consumers tend to buy holiday money infrequently, so they may not shop around as much or might stick with the same supplier.
"A cocktail of confusing charges and poor transparency means collectively we are losing out in a big way," he said.
"We are calling on the OFT to investigate and work with the industry to send these dubious and complex charges packing."
UK travellers spent around 27 billion while holidaying abroad in 2009, according to the Office for National Statistics.
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