Travel Tales

When travelling abroad outside the eurozone I was not aware, until I returned from a recent visit to the US, that use of my Visa card apparently gives rise to a charge both against me and the overseas merchant for each transaction.

I have been charged 2.75 per cent currency conversion fee on each US dollar transaction.

Are you and your other readers aware of this practice?

Can you suggest a way of avoiding/minimising such charges in the future? As a senior citizen I am fortunate in not having to pay commission in my own bank when purchasing foreign currency and I was therefore quite annoyed to have discovered this situation.

Robert Prole, Stillorgan, Co Dublin

These fees were always levied but it is only since last year that AIB – the card issuer in this case – started listing the fee on customer statements.

A spokesman for the bank also pointed out that details of charges are provided on a schedule when a customer applies for a card, which is also available in branches and online.

The fees are set by the card-issuing bank, while Visa charges a fee for providing the technology.

A spokeswoman for Visa declined to say how much it charged the banks, saying the amount was commercially sensitive, but added that it was up to the card issuer to decide how much of the fee to pass on to the customer.

The advice of both Visa and AIB is to shop around for the best value. But since most people travel only for a few weeks a year, the cost of foreign-exchange transactions is unlikely to be uppermost in their minds when making the choice.

AIB suggests that travellers have a range of payment options while on holidays, including debit cards, credit cards and cash.

“A reliance on one means of payment may result in these type of charges being applied whereas no charges apply for carrying cash,” its spokesman said.

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