Two major credit card providers have announced that they are to begin charging on transactions made abroad.
Nationwide and Thomas Cook have announced that their credit cards will no longer be able to be used without a fee in other countries.
The former uses credit cards issued by Visa, which charges for their use in a number of countries, including the USA. Previously, Nationwide would refund customers the difference, but as of May 6th they will no longer do so on their credit cards. Debit cards will follow suit from June 1st.
Consumer group Which? credit card expert Martyn Saville described the decision as "incredibly disappointing". He added: "Nationwide had been a shining light to the credit card industry with its no-fee policy on overseas purchases - it's a shame they've now sold out and fallen into line with the rest of the market."
Thomas Cook customers will also find that they will need to pay extra for using plastic on holidays or business trips from April 18th. Additionally, they will be subject to a 2.99 percent cash handling fee if they withdraw money from foreign cash machines.
According to Mr Saville, consumers will now be extremely limited when it comes to using credit cards abroad. He said that, with Nationwide and Thomas Cook's decision, Abbey Zero and the Post Office credit card are the only no-fee options available.
