If you are going on holiday abroad this year, then you a re likely to pay around £37 for using your credit and debit cards. That’s the average amount in fees that holidaymakers have to pay for using their cards overseas.

Banks have been accused of profiteering from customers and campaigners have called for fees to be cut. Last year banks charged a total of £726m for card use outside Britain, and this works out to about £37 for each trip abroad by a family.

A Post Office survey has also shown that over a third of holidaymakers do not know what they are being charged every time they use their card, even though they may be hit twice each time they do so. That is because each transaction incurs a currency cost and a foreign loading charge. Nearly all credit card providers charge an additional fee for using your card overseas. Charges are typically 2.75%, although Lloyds TSB has just made its charge rate 2.99%. So, if you spent £1,000 on your card on holiday, you would pay an extra £29.90 to the Lloyds TSB. The Post Office were shocked that so many travellers were unaware of the charges being levied on them for overseas card use.

Cards without fees include those from the Post Office and Nationwide. Eddie Wetherill, chairman of the Independent Banking Advisory Service, questioned the need for any fees if two major providers don’t charge. Mr Wetherill is campaigning against banking fees.

Some shops and restaurants abroad are offering “dynamic conversion” to enable people to pay in sterling, but although this may appear to be convenient, and might sound as though it negates any need for currency conversion, it always invokes another charge.

Use of debit cards is free in the UK, but people should assume it is the same abroad. There are charges on those as well as credit cards.