Metro Bank to charge for overseas use

By  Dan Hyde

Using a Metro Bank card abroad was free, but from March it will cost nearly £3 to withdraw £100 outside Europe 

Metro Bank will from March charge holidaymakers between 1.9pc and 14pc every time they use a card outside Europe, delivering a blow to those lured by its “free foreign use” promise. 

The London-centred bank, which in 2010 was the first to high street bank launch in a century, was unusual in waiving typical fees of around 3pc for withdrawing cash or spending abroad on a debit or credit card. 

Many of its initial customers are believed to have signed up purely for this benefit, while others saw it as an important part of its overall promise of better service. 

The bank has retained the perk in countries that use the euro. However, outside the eurozone there will be a 1.9pc charge per purchase from March 18 – equal to £1.90 on £100 spent on in a restaurant or shop. 

For cash machine withdrawals there is an additional £1 "non-sterling cash fee". This creates a total of £2.90 per £100 withdrawn, or 2.9pc. The more withdrawn, the better value, and vice versa. For instance, a £5 cash withdrawal would cost 69p – equal to 13.8pc. 

In a statement, Craig Donaldson, chief executive of Metro Bank, played down the impact. 

He said: “The overwhelming majority of our customers’ card transactions occur in the UK or Europe, so we’re confident that by offering completely free transactions in Europe and outstanding value in the rest of the world our customers will continue to benefit.”