The move is part of a campaign started last year to streamline visa applications worldwide, improving security and efficiency.

“The UK Border Agency is currently rolling out an online system, where almost all applicants across the world will apply and pay for their visas online by 2013/14,” a UK Border Agency spokesperson told The PIE.

“We have considered all options carefully and because the use of US dollars in transactions is relatively widespread in many countries around the world, we are confident that we have chosen the best approach for applicants.”

The system, which is already operational in 51 countries, mainly in America, Europe, New Zealand and Australia, promises to be more secure for staff and customers by removing the risks associated with cash transactions.

However, UKBA conceded that card transactions – which must be carried out  through Mastercard or Visa – will be subject to currency conversion charges.

This may concern international students, who saw the cost of visa applications made from abroad rise in 2011. Last April, short-term student visas (between six and eleven months) increased from £70 to £140; Tier 4 applications from £220 to £255; and Tier 1 post study visas from £344 to £474.

Removing the option to pay in cash will also affect those who do not own appropriate credit or debit cards.

The UKBA spokesperson said that the additional costs were unfortunate but that implementation of a new more efficient system was necessary.

“Once the online system is fully operational globally, applicants will be able to choose the currency with the most favourable exchange rate at the time of their transaction,” they added.

Applicants worldwide will still need to go to the British Embassy to submit biometric information such as fingerprints and photographs. However, from February 2012, appointments to this will only be bookable online.