In recent years, however, overseas card fees have slowly – and silently – increased. Holidaymakers who use their debit cards to withdraw money abroad often incur two charges, paying both a transaction fee and an ATM fee. Charges can vary from provider to provider. The table below outlines the most expensive:

While banks are charged a transaction fee when a customer withdraws money abroad, the fees the consumer incurs represents a significant mark-up on those costs. As the table above illustrates, consumers can pay close to 5 per cent in total.

James Daley of Fairer Finance speculates that the issue is yet to catch the attention of regulators because the sums involved are generally negligible. It is highly unlikely, for instance, that an individual consumer will incur costs approaching even £100 in total by using their card abroad.

However, Daley also believes that consumers are deliberately kept in the dark about how much they’ll pay for overseas card usage – and this may contribute to the lack of public outcry.

“When Fairer Finance carries out transparency analysis of banks, we look for a clear statement of fees and charges for using your card overseas – and most fail this test,” he notes.

How to avoid high fees

For those who wish to avoid incurring such exorbitant charges, there are a number of alternatives, such as credit cards.

“If you’re a frequent traveller abroad, it makes sense to get yourself a low-cost credit card and keep it in the drawer with your passport, purely for overseas spending,” recommends Andrew Hagger, founder of Moneycomms.co.uk.

The tables below details the cheapest – and most expensive – credit cards for overseas use.

Pre-paid cards can also be a cheaper alternative to both debit and credit cards. Currency specialist FairFX offers pre-paid cards that charge 1.4 per cent for transactions, and a fixed £1 fee for cash withdrawals. Pockit pre-paid cards don’t charge transaction fees, although there is a 4 per cent fee for loading money onto the card, and a £2.25 fee for cash withdrawals.

Daley concludes: “I’m not sure this is an issue that can be readily resolved without a heavy hand from the regulator. In the least, I’d like to see some reasonable limits introduced for these kind of charges – such as the caps which were introduced for paying by debit and credit card online.

“Until then, it’s another example of banks continuing to get away with what they can, rather than treating their customers fairly.”

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