With travel agents in their busiest time of the year for holiday bookings, the Nationwide Building Society urges travellers to research more than just their destination this January.

While browsing the brochures can save a few pounds on the cost of the holiday, so can choosing the right way to spend while overseas.

Using credit or debit cards are two of the most convenient ways to spend money while abroad, as both are widely accepted around the world. However, a ‘hidden fee’ as Nationwide call it, is typically charged at 2.75% on cash withdrawals and purchases anywhere in the world.

Nationwide says it is the only high street financial provider not to charge a foreign currency loading fee for customers using its cards abroad. In addition, Nationwide’s current account (FlexAccount) customers withdrawing money from foreign ATMs are not charged a cash advance fee, and credit card customers only pay 1%. Some card suppliers charge 2% for foreign ATM withdrawals.

UK cardholders spent over £13 billion on credit and debit cards overseas in 2002. Nationwide says this means that over £350 million was paid to card providers in foreign currency loading fees.

Consumers would have saved this money if they had not used other high street credit or debit cards. With average overseas transaction values of around £70, UK consumers are paying almost £2 every time they buy something using their card while abroad. In addition, some like Halifax and NatWest charge customers an extra fee for every transaction they make with their debit cards, increasing the cost of overseas usage even further.

A simple way for holidaymakers to find out if they are paying unnecessary charges is to use the new ‘summary boxes’ in credit card leaflets. Summary boxes were introduced across the industry in October 2003. Among the fees and charges that these boxes clearly display are foreign currency loading fees. Consumers are therefore able to make direct comparisons between different credit cards.

Stuart Bernau, Nationwide’s executive director, said: "When I’m abroad I use my Nationwide debit and credit cards, as it’s convenient, saves me money and makes sense. I think it is a shame that so many credit and debit card providers choose to take advantage of their customers’ while they are on holiday.”