Holidaymakers risk paying £327m in credit card fees

Brits heading abroad this summer could face a collective hit of £327 million to their holiday budgets in the form of credit card fees, according to the findings of new research.

To find the right credit card for your break abroad, you can compare credit cards with Propertywide.

An analysis from uSwitch.com has revealed that 12 million consumers are planning to use their credit cards while on their overseas trip, facing a total credit card charge bill of £327 million.

Some 60% of consumers are also planning to withdraw cash using their credit card on holiday, facing a minimum fee of £3 each time they do so.

The research also revealed that the 12 million consumers opting to use a debit card on their foreign holiday could fare even worse, with a double set of fees applied.

While an average exchange rate transaction fee of 2.75% applies to both credit card and debit cards used abroad, debit card users will also need to pay a ‘purchase’ fee of around £1.25 for each transaction they make.

However, debit cards are the cheaper option when it comes to cash withdrawals – with fees of 2% rather than 3% on top of the exchange rate transaction fee. In addition, debit cards don’t come with cash advance interest charges.

Michael Ossei, personal finance expert at uSwitch.com, said: “Family holidays inevitably end up costing more than you think, especially during the peak months of July and August.

“And with trips abroad now costing more than they did a year ago, as a result of the weakening pound, it’s even more important that holidaymakers don’t get ripped off by using the wrong card this holiday season.

“Taking action now and snapping up the cheapest travel cards could save you hundreds from the cost of your trip. There are credit cards on the market that charge no transaction fees when you use them abroad – these are the ones to go for.”

To find the right credit card for your break abroad, you can compare credit cards with Propertywide.

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Posted by: Nicola Severn Categories: Finance, Uncategorized Tags: , , Comments Off on Holidaymakers risk paying £327m in credit card fees

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