03 July 2023 , 14:12
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First Direct is no longer charging its customers for using their debit cards when abroad.
The bank stopped charging customers a non-sterling transaction fee as well as a non sterling cash fee on June 28, according to MoneySavingExpert.com.
Previously, customers received a 2.75% mark-up when customers made a purchase on their card or when they made cash withdrawals in foreign currencies.
On top of this, customers also faced an extra fee when withdrawing cash.
This non-sterling cash fee was 2%, which was a minimum add on of £1.75 or a maximum of £5, on top of the transaction fee.
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So for example, if you withdrew £100 worth of cash, you would actually pay £102.75 when the transaction fee was added and a further £2 on top of the cash fee.
However, now these fees have been scrapped MSE says the challenger bank will now be passing on Mastercard's real exchange rate which means it offers a "near perfect exchange rate".
The MSE website also notes that these extra fees will also not be added when purchasing through a foreign website.
The changes apply to all existing First Direct debit card holders as well as new customers.
MSE noted that the change does not affect First Direct credit cards and you will still pay fees of 2.99% if you use your First Direct credit card abroad.
Chris Pitt, chief executive at First Direct, said: "At First Direct we are committed to supporting our customers as they navigate the rising cost of living.
"That's why we're waving goodbye to transaction and withdrawal fees on our current account, so customers can make the most of their travels without worrying about extra charges.
"We hope this will help people enjoy their hard earnt holiday with extra peace of mind."
When spending money abroad you should be aware that some cash machine operators may apply a direct charge for withdrawals from their cash machines, and this should be shown on screen at the time of withdrawal.
First Direct joins a handful of other banks who also do not charge fees for foreign spending.
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These other banks include Chase, Starling Bank.
The Mirror has contacted First Direct for comment.