Customers get clearer information on overseas fees

21 December 2011 15:43:43

Information on overseas credit card charges will soon be clearer.

The UK Cards Association and the British Bankers' Association (BBA) have announced new measures that should ensure consumers get clearer information on the charges involved when using their debit and credit cards overseas. At present, many people find it hard to work out how much their card provider will charge for overseas transactions or ATM withdrawals. The new measures should help consumers to manage their finances and compare credit cards before heading overseas.

Overseas charges to be made clearer
The changes, which have been achieved with the Office of Fair Trading (OFT), will see the industry work with the OFT to improve the description of foreign transaction charges for debit and credit cards. This means that by the end of 2012, it should be easier for customers to understand these charges.

Credit card summary boxes to be improved
Another important change will affect the summary boxes that display key information about credit cards on marketing material. The UK Cards Association has agreed to undertake consumer research to determine the best way to display foreign transaction fees in these summary boxes. This new information should be in place by the end of 2012 and will be particularly beneficial for those who regularly travel overseas.

Websites to display consistent information
Card providers have agreed to alter their websites so that all of the relevant credit card's associated fees are easy to see. The UK Cards Association and the BBA will work together to develop industry guidelines by the end of next year, which will ensure customers have access to consistent information.

Better information on statements
Credit card holders and bank account customers will soon notice that the travel money charges associated with their debit or credit card are more clearly laid out on their statements.

No more debit card charges for purchasing travel money
Britons who use their debit cards to purchase travel money or travellers' cheques will no longer have to pay bank charges, after all banks agreed to withdraw the charges.

Melanie Johnson, chair of the UK Cards Association, said that debit and credit cards are "hugely convenient" and offer consumers protection against loss and fraud when travelling overseas. "The industry wants its customers to be in control of their finances and to have the information they need to do this. We welcome the opportunity to work closely with the OFT to deliver refinements in a number of key areas that will really help customers make better choices about how they make purchases overseas," she revealed.

Ms Johnson added that travellers should compare debit and credit cards carefully before going abroad, as there are "lots of different cards to choose from".

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