Ever wondered how much your bank charges you to use your card abroad? Well, it’s a lot!
Our survey of four of the largest UK banks revealed that they charge on average £47.16 to spend just £500 in EUR. Which, FYI, is the cost of a flight to almost anywhere in Europe.
Why does it cost so much?
Fees
Almost all banks charge fees to use your bank card abroad. The fees are bundled into the transactions in your statement, making it conveniently hard to work out how much you’ve been charged.
Spending in a shop will cost you between 2.5% to 3% per transaction. Withdrawing cash is evening more expensive as you’ll pay the 3%, plus an additional ATM fee.
Natwest charges 5.75% for every overseas ATM withdrawal. This means to withdraw £200, Natwest will charge you £11.50!
Exchange rate markups
Banks markup the exchange rate to make a profit when you use your card abroad. Yesterday, the interbank exchange rate was £1 - €1.19. However, the banks surveyed were offering €1.12 or €1.13 for a pound.
Whilst a €0.07 difference may not seem like much, with a £500 budget you’re losing an additional €30 or £30. Banks are effectively charging you an additional £30 just to use your money abroad.
How can I avoid this?
Easily, just download the Revolut App on Android or iOS, order yourself a RevolutCard!
Revolut allows you to spend in 120 currencies with the interbank rate (the real exchange rate). You can top-up your account with pounds, euros or USD, and we’ll automatically convert your balance when you use your RevolutCard abroad.
Oh, and here’s where that extra £47 could take you with Easyjet ✈️ 🌞
