Money News

Brits unaware of credit card fees abroad

By Dominic Welling dominic.welling@consumerchoices.co.uk

Holidaymakers will spend more than £60million on credit card charges this year, according to a new survey.

More than half of holidaymakers will be paying to use their card abroad this summer.

And holidaymakers will be paying even though fee-free alternatives are available, according to a new survey from The Post Office.

In the survey 55% of respondents said they would be charged a fee for using their credit card abroad.

An additional 13% said they didn’t even know if their card carried charges.

Many credit card providers charge fees of up to 2.99%, so shoppers abroad could be unknowingly adding pounds to every purchase, the Post Office has warned.

Of all the UK holidaymakers who plan to use their credit card abroad this year, almost half (42%) said they didn’t know what it would cost them.

Az Alibhai, head of cards at the Post Office, said: “This summer millions of travellers will waste money on unnecessary fees, and worryingly many are not even aware of how much this will increase their holiday spending.

“Holidays should be a time to relax and enjoy yourself, but these extra pounds paid every time you make a purchase could result in extra stress when the credit card bill arrives.”

UK tourists are expected to spend around £3billion on credit cards abroad between now and the end of the year.

Chris Eagle, director of marketing at Creditchoices.co.uk, said: “If you are planning to use your credit card abroad you should really check out what fees will be applied.

“Check your terms and conditions and shop around to see if it is possible to get a better deal by switching.

“Even if you’re not planning to use your card abroad then you should still check you’re on the right deal for you.”

The Post Office Credit Card (www.postoffice.co.uk) offers 0% commission on foreign purchases, and no cash advance fee when purchasing foreign currency from the Post Office.

It also offers 0% on balance transfers for the first 12 months and 0% on new purchases for the first three months.