High street bank with 3million customers to start charging fees to use debit card abroad within weeks

A HIGH street bank will start charging customers to use their debit cards abroad later this summer.

Metro Bank is set to introduce a 2.99% fee on all debit card transactions made outside the UK from August 29 - including in Europe, which is currently free, The Sun can reveal.

And customers withdrawing cash from their bank account anywhere abroad will pay the 2.99% fee plus an additional £1.50 ATM fee.

Metro Bank, which has around 3million customers, currently allows them to spend on their debit cards and make cash withdrawals in a foreign currency in Europe free of charge.

But last week, it emailed customers to let them know it would begin charging for transactions made in all foreign countries from August.

The email, sent on June 27, said: "After August 29 2024, debit card payments made in a foreign currency outside the UK will be charged 2.99% on the converted British Pound value of the transaction.

"After August 29 2024, cash withdrawals made in a foreign currency using your debit card outside the UK will be charged 2.99% on the converted British Pound value plus £1.50 ATM fee.

"This charge is applicable for each transaction you make."

While a 2.99% fee may not sound like much, the charges can quickly rack up as the fee is applied to every individual transaction.

For example, if you spend £20 on your card, you will pay 60p in fees.

So, if you make five £20 transactions, you'll have spent an extra £3 in fees.

And if you withdraw cash from an ATM, the charges are even higher.

By withdrawing £100 worth of foreign currency, you would incur a £2.99 charge, plus the additional £1.50 withdrawal fee.

This means you would pay an extra £4.49 for taking out £100.

One customer who spotted the change said: "It's very disappointing to note Metro Bank will be charging the fee. I have had this account for well over 10 years explicitly to use in Europe.

"On occasion there have been large sums in the account, but unfortunately it will be cancelled on August 29. I now need to find another free debit card."

A spokesperson for Metro Bank confirmed the change, adding: “Over time, we’ve seen our customer’s needs and expectations evolve and the demand for this service has been declining over a number of years.”

What do other banks charge?

Most banks offer a way for customers to spend abroad without paying any fees.

Some only allow free transactions in Europe, while others currently have no fees anywhere in the world.

First Direct

First Direct does not charge fees for using a debit card to make a payment in a foreign currency or for making a cash withdrawal in another country.

There is a daily cash withdrawal limit of £500 (or the foreign currency equivalent) at ATMs.

HSBC

Customers with a HSBC Global Money Account can spend abroad and withdraw from cash points fee-free.

Global Money accounts are available to any HSBC customers with an active current account and its banking app.

Other customers will be charged 2.75% for shopping, and 2.75%, plus a fee of 2% for cash.

Lloyds Bank

Lloyd’s Silver and Platinum account customers will be able to use their debit card anywhere in the world free of charge from July 1, 2024.

However, the Silver Packaged Bank Accounts costs £10.00 a month while the Platinum option costs £21.00 a month.

Monzo Bank

Monzo says customers can pay anywhere and in any currency on their debit card with no foreign transaction fees.

And if Monzo is your main bank account, you can make unlimited fee-free withdrawals in the European Economic Area (EEA), and up to £200 every 30 days anywhere else. After that, the bank charges 3%.

Santander

If you have the Santander Edge, Santander Edge Up and Private Account debit cards, you can withdraw money fee-free and you won’t get foreign transaction fees on spending while away.

All other accounts with Santander charge 2.95% for both purchases and withdrawals.

Starling Bank

Starling doesn’t charge for using your debit card while abroad.

TSB bank

If you have a TSB Spend and Save Plus account, you will pay no fees on debit card transactions worldwide.

Other account holders will pay 2.99% in fees on transactions, and 1.5% fees on any money withdrawn.

There are no fees for making a cash withdrawal in Euros from a cash machine in an EEA country.

Virgin Money and Clysedale Bank

If you have a Virgin Money M Plus account, you won’t be charged for using your debit card abroad, although the bank has warned that some ATMs may still charge a fee.

You can read our full guide to other banks which don't charge fees on foreign transactions here.

If you are exchanging cash into a foreign currency, make sure to shop around and buy ahead.