A Winnipeg man is warning consumers about using their credit cards while outside the country, saying he was surprised to learn about additional fees alongside the conversion rate.

Ralph Warrington, who has filed an official complaint with his bank, said he was surprised to find an additional 2.5 per cent charge added to every transaction he made during a recent trip to the U.S. Warrington said he inquired at the bank about the charge and was told the fees were explained on his credit card statement. 

'That is pure gouging, especially when exchanging monies and currencies is part of the banks core operation.'—Duff Conacher, Canadian Community Reinvestment Coalition

"Down here in the lower right-hand corner, there is a little washed out piece that talks about the foreign charge of 2.5 per cent," he said. "The supervisor told me they were having printing problems, which is so hard to believe."

The 2.5 per cent fee for out-of-country purchases is applied to credit cards from TD Canada Trust, RBC, Scotiabank, Bank of Montreal and CIBC.

Duff Conacher, chairperson of the Canadian Community Reinvestment Coalition, says consumers shouldn't have to pay an additional amount for the service.

"That is pure gouging, especially when exchanging monies and currencies is part of the banks' core operation," Conacher said.

"There shouldn't even be any extra charge for that kind of service," he said.

Conacher called on Federal Finance Minister Jim Flaherty to prioritize consumer concerns over additional banking fees. 

'It is a reflection of the competition and the nature of competition in that marketplace.'—Caroline Hubberstey, Canadian Bankers Association

"The federal government is negligent in this area on multiple levels, is protecting six big banks from accountability, instead of protecting 20 million bank customers from gouging. It's perverse, and it has to stop."

But Caroline Hubberstey, a spokeswoman for the Canadian Bankers Association, says that with any service there will be an associated cost. She also said the nature of competition demands that the banks will charge comparable fees.

"It's the norm to see prices that are very like or similar," she said. "It is a reflection of the competition and the nature of competition in that marketplace."