Holiday makers are paying through their nose when they use their credit cards while paying for transactions abroad, says a recent finding.
A survey done by MoneySupermarket, a UK-based financial product comparison website, reported that around 54% of the population polled are unaware of immediate interest applied on a credit card used to withdraw cash from an ATM abroad; while 57% of the respondents, or around 15 million people, didn’t know about additional charges and transaction fees and interest applied on their cards on spending abroad.
Around £10.2bn is spent by Brits using plastic cards abroad. 52% of the respondents of the survey have used a credit card abroad, and 22% of the people polled have used a credit card abroad in the last year.
Bob Atkinson, travel expert at MoneySupermarket.com, said, ‘Some debit and credit cards should only be used abroad in an emergency unless they are specifically designed for overseas usage. If you are planning to use cards abroad then it pays to be clued up on all the charges involved in doing so before you jet off.
It’s extremely worrying that such a high number of holidaymakers are not aware of the extra fees or charges that apply when using a card for purchases or withdrawals, or that they may not be getting the best exchange rate.
Every major credit card, bar one, charges interest from the date of withdrawing cash at an ATM, many have loading fees for over the counter purchases, but you should always check before heading abroad. Failing to do so means you will probably face a hefty bill on the doormat on your return when in fact you thought you had snared a bargain.’