Holidaymakers lose more than £350m a year in unnecessary foreign currency loading fees or commission, according to a report published today by Nationwide building society.

British cardholders spent more than £13bn on overseas credit and debit card transactions in 2002, and some £350m was paid in fees to card providers.

People using credit and debit cards while abroad typically pay as much as 2.75% in bank charges on cash withdrawals and purchases, while some providers charge an additional fee for every transaction made overseas.

Nationwide, which does not impose foreign currency loading fees on its current accountholders, or charge extra for cash withdrawals made overseas, has advised holidaymakers to check the new credit card summary boxes, which are being introduced this year, to see if their provider levies such charges.

The new boxes will contain details on interest rates and charges in a standard format to make it easy for consumers to compare different providers.

Meanwhile, Lloyds TSB has announced it will be offering commission-free foreign currency charging to both customers and non-customers during 2004.

The bank will also buy back all foreign notes and American Express travellers cheques without charging commission.