Major high street bank issues new charge on using a debit card

From Friday (August 30), a high street bank serving three million customers, is set to introduce new charges for using debit cards abroad. Metro Bank has begun implementing a 2.99% fee on all foreign transactions made with its debit cards.

This applies to transactions made in frequently visited locales like Spain, Portugal, Turkey and other European Union holiday hotspots. The added expense is attached to every single transaction conducted outside the UK, potentially piling up additional costs onto your travel budget.

It was detailed in an email sent out on June 27 stating: "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 a £1.50 ATM fee."

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"This charge is applicable for each transaction you make." Metro Bank's spokesperson commented, saying: "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," reports Birmingham Live.

This development comes as Metro Bank prepares to discontinue all personal credit cards on September 10. Metro Bank clarified that business credit cards and all forms of overdrafts will not be subject to these changes.

A spokesperson from Metro Bank elaborated to The Sun: "Withdrawing the retail credit card is the next step in Metro Bank's commitment to simplify its operations and streamline lending activity. Retail cardholders will continue to be able to use their cards until September 10, 2024."

The bank has ceased accepting new applications for its personal credit card, which carries no fee and a single interest rate of 18.9%. All existing credit cards will cease functioning from September 10. This implies that you will no longer have the ability to pay for goods or services in-store or online, as your card will not be accepted.

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