Consumers Urged To Consider Overseas Credit Card Charges

Most of us would not think twice about using our credit card abroad. It is convenient as we don’t have to carry much cash around and any purchases are usually covered by the card company in the event of any problems. However, we need to consider the down side to using our credit card out of the country.

Many people planning to use their credit cards while on holiday abroad are unaware that they could be charged additional fees by the provider, according to a new report.

Research by the Post Office found that nearly half of holidaymakers do not know that they will be charged an average of nearly 3 per cent for each transaction they make overseas. Additionally, over a third of those surveyed thought their provider did not charge fees, despite only two cards available on the market that do not.

The head of lending at the Post Office, said: "It's shocking not only to see how much people are being penalised to use their cards on holiday, but how few are aware of this."

Consumers should also avoid the offer of paying in their own currency when they're using their card. The retailer will often offer you the chance to conduct the transaction in sterling but the exchange rate is usually much worse than if you'd simply carried out the transaction in local currency.

Holidaymakers are advised to check with their bank or card provider whether they will be paying a fee to shop overseas. There are great value 0 per cent deals available that can ensure that you return home laden only with shopping bags and happy memories, and not a bigger credit-card bill.

If you're going abroad this summer, it's well worth taking some time to think about how you plan to pay for things while you're away. Consumers will get the best value for money – and avoid fees – by changing currency before they go. However, most people are reluctant to carry large sums of cash with them.

If you would like to know more about credit cards why not ask AnswerBank Business and Finance.