The ‘challenger’ bank will charge customers a 1.9% transaction fee on card purchases, equivalent to £1.90 on £100.

It is also introducing a 1.9% transaction fee plus a £1.00 cash fee on ATM withdrawals.

Card transactions will continue to be free in Europe.

The changes will take effect from 18 March 2014.

Craig Donaldson, chief executive of Metro Bank, 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.”