Don’t Let Credit Debtit and Pre-Paid Card Charges Ruin Your Summer Holiday

By: MoneyFacts

After weeks of rain many people will be looking forward to their summer holiday and travel to warmer climes.

While arranging your spending money may not be the highlight of any holiday, a small amount of time and effort could see you making significant cost savings.

Using your credit and debit cards abroad may be the easiest and most convenient way for many, but costs can soon mount up if you’re not careful.

Sylvia Waycot, spokesperson for Moneyfacts.co.uk, comments:

Travel Money
“Changing your currency at the airport may seem convenient, but you will be paying for the privilege through unfavourable exchange rates.

“Money can be exchanged once overseas, but lack of local knowledge may mean settling for uncompetitive rates of exchange. If your trip takes you off the beaten track, your options may be further restricted.

“Shopping around before you go will leave you more in control of getting the best rate.

“Commission free doesn’t necessarily mean the best deal. The commission fee is likely to have been loaded into the rate.”

Credit Cards - See Appendix 1
“Credit cards will levy a foreign usage charge of up to 2.99% for both purchases and cash transactions. Charges are applied each time the card is used and can soon add up.

“Taking money out on your credit card is never advisable even in the UK. Interest rates on cash withdrawals are charged at a higher rate than purchases and a cash handling fee, typically 3.00%, minimum £3, is applied.

“£100 cash withdrawn from an MBNA or Virgin Money credit card will see you paying £7.99 in charges alone.

“Credit cards from The Post Office, Saga, Metro Bank and selected products from Halifax and Sainsbury’s Bank make no additional charges for using you card overseas.

“It is worth taking a credit card in case of emergencies, or unexpected ‘surprises’.”

Debit Cards - See Appendix 2
“In the UK we are so used to free banking that many people assume things will be the same when they go overseas.

“This can be a costly mistake as cha

rges can apply to both withdrawing money out of a cash machine and for making purchases in store.

“Customers taking out cash need to be aware of minimum charges. If you withdraw lots of small amounts you will be hardest hit, so it may be worth planning a few days ahead for your financial requirements.

Prepaid Cards - See Appendix 3
“An alternative to credit and debit cards for overseas use is the popular prepaid travel cards, not to be confused with the prepaid everyday UK use cards.

These have been tailored to make overseas charges a minimum and have the added advantage that if they are lost or stolen, no one has access to your UK accounts.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.