Nationwide customers face overseas charges

Sep 22, 2010   //   by sam   //   Banking and Savings Accounts  //  Comments Off on Nationwide customers face overseas charges

NationwideAs colder winds are begin to bluster through Europe’s holiday hot spots, the same be said for the charges levied on UK card holders that use their accounts abroad.

In coming months, the Nationwide Building Society will withdraw its popular commission-free use while abroad, charging a fee when accessing bank accounts using a debit card.

This is a fee that most other banks already charge for debit card use abroad, with fees of   up to £4 for every £100 spent, which is on top of exchange fees and any additional costs.

The Nationwide FlexAccount is now being changed in order to reward loyal customers at the expense of people that recently opened an account to avoid paying charges.

The commission-free withdrawals are to be replaced by a free travel insurance policy

A concerning number of Nationwide bank account customers are said to be ditching their accounts, despite the building society insisting that its fees will still remain lower than most competitors after the changes.

“Many competitors charge a higher level of 2.75%,” says the Nationwide.

“Our charge of 2% is the lowest charge in the market on a mass-market current account.

“That means when a customer spends £1,000 abroad, they will be charged at least £15 less than those with other providers,” it added.

For years the Nationwide debit card has come highly recommended for holidaymakers. Many customers signed up for a Nationwide account purely for the commission-free feature.

At present, anyone using ta Nationwide debit card in Europe is not charged for the privilege, although a 1% charge does apply when making transactions outside the eurozone.

However, from 1 November, Nationwide is to levy a 2% fee on all overseas transactions.

This foreign exchange fee will be changed whenever you use your card, whether you plan to pay for something or withdrawing   money from a cash machine.

The building society will also levy a cash-withdrawal fee of £1, which is to replace the current 1% currency-conversion charge.

This levy will not apply to Nationwide credit card holders.

Nationwide is keeping its overseas usage charges at 1% for purchases made outside the European Union, and free within the EU.

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