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How do I avoid credit card penalties abroad?
Dear Chris, I was wondering if you could help me out. I’ll be embarking shortly on a walking holiday in the Barri Del Carmel hills, Barcelona, and I need to know which credit or debit card will be the most economical and secure to use while I’m there.
I currently have a credit card issued by my building society, Nationwide. Would this be appropriate for overseas use?
Thanks,
Jeff Goodall, via email, Wednesday 16 June, 2008
Our expert says:
Straight out of the blocks, I’d recommend you use a card which fully protects you in the result of theft or loss.
Credit cards offer more in the way of identity theft protection cover than debit cards, and the use of debit cards overseas wouldn’t be recommended as a result.
Losing a couple of hundred pounds on your credit card is one thing, losing the entire contents of your current account is another matter entirely.
Charges
A number of cards will charge you flat fees such as loading fees, cash withdrawal penalties and spending fees for overseas use. To get the inside track on these charges, take a look at our guide to overseas card use penalties.
There are ways in which you can avoid these fees however.
Your current card, the Nationwide (www.nationwide.co.uk) credit card, does not apply loading fees (fees added onto the exchange rate by your bank) to overseas use, and therefore it represents a great way to spend overseas without attracting extra charges.
One step up is the Post Office (www.postoffice.co.uk) credit card, which offers both 0% commission on overseas purchases, and a combined 0% on balance transfers for 10 months, and 0% on UK purchases for 3 months.
Peace of Mind
Should you wish to leave the domestic plastic behind when you travel to Barcelona, then a Post Office Travel Money card (www.postoffice.co.uk) may come to your rescue.
Simply load the card up with Euros before you jet off (you can top up by as little as £50 worth each time, up to £2500), then enjoy the freedom to make purchases and withdraw cash on a card that’s completely separate from your bank account.
Post Office Travel Money Cards come in Pounds Sterling, euro or American Dollar specification.