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21 August 2007
Credit card holders with Liverpool Victoria have enjoyed the unusual benefit of no foreign transaction fees when using their credit cards in other destinations within the European Union.
However, according to recent reports this is a benefit that is due to come to an end, with Liverpool Victoria announcing that there will be a three percent foreign currency loading charge applied from the end of September when cardholders use their cards abroad.
The new charge is due to take effect from 27th September, so the good news is that many holidaymakers will have been and returned from their summer holidays by this time.
The bad news, of course, is that the valuable fee free service will come to an end in September, leaving cardholders to face extortionate charges when using their credit cards abroad in the future.
Liverpool Victoria no longer issues credit cards, although existing cardholders are still able to use their cards. This comes after LV sold on its credit card sector to Goldfish last year, hence ceased running its own credit card division.
A number of other credit card issuers have hiked up their foreign fees recently, with Bank of Scotland and Intelligent Finance both raising rates for foreign usage from 2.75 percent to 2.95 percent. Cash withdrawal charges have also been raised by both card issuers, from 2.5 percent with a £2.50 minimum to 3 percent with a £3.00 minimum.
Reports show that Nationwide and the Post Office continue to allow customers to use their credit cards abroad without charges. Saga also allows fee free credit card usage abroad but only within the EU.
With regards to the credit card fees and charges being imposed by many card issuers one industry professional stated: "People will not realise many of these charges because they are hidden and not part of the advertised, up-front costs."
Consumers that plan to use their credit cards abroad rather than using traveller's cheques or other payment methods are advised to look at the various options [See Post Office credit cards], and also to ensure that that have familiarized themselves with the charges and fees imposed by their credit card company in order to avoid any nasty shocks when they return from holiday and receive their credit card statements.
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