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The Saga Group has reassured its credit card customers that it remains committed to free transactions abroad.

While Nationwide announced earlier this month that it is introducing a small fee to use cards abroad, Saga insists its over-50 customers will not have to fork out extra on holiday payments.

Paul Green, head of communications at Saga, says its Platinum card is increasingly popular for that very reason.

He explains: "It can clearly be quite unpleasant to come back from a holiday and find your credit card bill stuffed and loaded with charges which are often quite significant."

Mr Green adds Saga had to change its credit card provider recently, a process which made the firm realise free European transactions are "a key feature" and "core part of our offering."

A warning over debit and credit card charges for holidaymakers was issued earlier this month by Moneynet.co.uk after research by the website found travellers were incurring large charges for transactions abroad.

The report showed conversion fees commonly equate to between 2.75 and 2.99% per payment - along with an extra fee which could be as much as £1.50.

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