Five major banks have agreed to scrap their charges for customers buying foreign currency with a debit card, The Guardian has reported.
Holidaymakers paying for their currency with Lloyds Banking Group, Barclays, Royal Bank of Scotland, Santander or Co-Operative Bank debit card have previously been charged a fee of between 1.5 per cent and 2 per cent.
However, following a super-complaint by Consumer Focus, an investigation into the charges was conducted by the Office of Fair Trading (OFT).
The five banks in question have now reached an agreement with the OFT to withdraw the charges for its debit card customers.
Britain’s other major banks – Nationwide, HSBC and Halifax – do not currently impose such charges.