UK holidaymakers who are planning to use their credit card abroad this summer could be wasting hundreds of millions of pounds on unnecessary fees.
Research from the Post Office shows that 49 per cent of UK holidaymakers plan to use their credit card to shop abroad, accounting for an estimated spend of around £9.4 billion.
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But as the majority of credit cards typically charge 2.75 per cent for each transaction made overseas, people could be paying an extra £258 million in fees. And its not just credit card providers that charge a fee: several debit card providers have also recently announced an increase in fees abroad.
Yet, half of all holidaymakers have no idea about these hidden costs.
Over a third of credit card users believe their provider does not charge a fee at all, despite there being only two credit cards on the market including the Post Office credit card that do not charge for all overseas transactions.
And with almost 10 million holidaymakers not setting up any type of financial budget when away, many people could still be paying for their holiday months after the event.
Women are more likely than men to keep their holiday budget with 69 per cent generally doing so compared to 59 per cent of men. 18-24 year olds are the most unlikely to know if they are paying a fee.
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Post Office head of lending, Gary Fitton, said: We are now four times more likely to spend on plastic abroad than 10 years ago. There are great value zero per cent deals available which can ensure you return home with only shopping bags and happy memories, and not a bigger credit card bill.
For example, a credit card holder could save £55 in fees if they spent £2,000 on a Post Office credit card abroad, compared to a typical card charging 2.75 per cent each time its used. We urge debit card holder to also check with their provider whether it will cost them extra to spend on holiday.
Date: 20th, July, 2007
ADVICE TO READERS
While this website is checked for accuracy, we are not liable for any incorrect information included. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions.
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