Credit card users in overseas fees boost

Posted 2007-12-21

Credit card users who take their cards overseas have some good news: charges on purchases abroad are set to be overhauled.

The crackdown on credit card charges comes as MasterCard and Maestros fees were outlawed under European Commission competition rules yesterday.

Such fees had been blamed on pushing up prices for Britons using their credit and debit cards overseas, but the new ruling sets out to cut these fees.

The commission warned MasterCard it must cut its fees within six months or risk being fined, with EU Competition commissioner Neelie Kroes adding: “Consumers risk paying twice - through fees to their bank and inflated retail prices.”

However, the changes to fees could end up costing credit cards users more when they use their cards at home in the UK, as banks and card issuers will be trying to recoup their losses.

MasterCard has also added that it plans to appeal against the decision.

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