Credit cards could be costly choice for holiday money
Many holidaymakers may return from their summer travels to high credit card bills because of the cost of accessing money abroad.
Research from moneyfacts.co.uk concluded that many people are unaware how much they are charged for using their credit cards overseas and that once the fees are taken into account they could see dramatically higher statements.
Last year, an estimated £12.2 billion was spent by UK travellers using their cards and this led to a total of £335.5 million in charges – significantly adding to borrowing levels for many consumers.
Lisa Taylor, analyst at Moneyfacts.co.uk, explained: "We take it for granted that using our debit cards is free of charge whilst on home soil, so it’s not surprising that some consumers are shocked when they see how the charges stack up after using their card on holiday."
She added: "With terms such as retail conversion charge and foreign usage charge, it can be confusing for travellers to know exactly what types of fees they will be liable for, and how much it’s likely to add to the cost of their trip."
Consumers are encouraged to make sure they contact their credit card provider before jetting-off so that they are clear on what charges could be made if they opt to shop using their card rather than local currency or travellers cheques.
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