Millions pay "unnecessary" foreign exchange fees

Many UK citizens pay high charges when depending on their credit cards for foreign exchange transactions, a leading bank reports.

Figures from Abbey Credit Cards recently revealed that Britons overseas pay more than £74 million in fees associated with using their cards for international purchases.

Callum Gibson, head of credit cards at the bank, described the charges as "a staggering and unnecessary sum at a time when people are having to manage their finances more carefully".

To avoid being penalised by high fees, Brits are encouraged to plan ahead and purchase their currency from online foreign exchange services, according to Which? magazine.

A recent survey by the consumer watchdog found that internet exchange facilities offered some of the cheapest charges for changing money.

The highest fees were levied by companies based in airport foreign exchanges, the study revealed.

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By Linsey Summers.