Barclays, RBS, Santander, LLoyds and the Co-op are all guilty of imposing charges of between 1.5 and 2% if holidaymakers use their debit cards before leaving the UK to purchase foreign currency.
Whilst investigating a complaint made by the watchdog Consumer Focus, the OFT found that £1bn per year is made from confusing travel money charges (such as the above) which holidaymakers often pay without really knowing or understanding why.
After pressure from the OFT, many banks and credit card companies have agreed to remove some of these charges, as well as promising to display the charges more clearly in monthly statements.
Most banks and card companies will now have to show charges incurred abroad (including the typical loading fee of almost 3%) separately on statements as opposed to hiding them among the cost of the items travellers bought on their card.
View and comment on the original BBC News article.