Keep an eye on card fees when abroad

When travelling abroad one of the easiest ways to lose money is to pay too much when converting currency or being forced into accepting over the top fees.

One of the worst options available to you is the bureaux de change who will offer a very poor exchange rate and often charge a flat fee.

Just recently I saw an airport bureaux charging people £5 just to use the service.

Most people will turn to plastic when on holiday and think nothing of popping their card in the nearest hole in the wall to get some Euros.

But it is important that you know just how much you are likely to be charged.

The exchange rates used by cards are fairly standard and there is little you can do about the rate, but it is the 'loading fee' that makes the difference.

This fee is 2.75 per cent every time you use your card, so if you spend £100 in Euros you will actually pay £102.75. However, according to the Money Saving Expert some cards don’t charge this.

And then the next way that card issuers make money from people is to charge a withdrawal fee, usually 2 per cent of the amount, and then some banks may charge you for using the hole in the wall itself.

One small way around the withdrawal fee is to pay for things directly, for example a meal in a restaurant, but again read over your credit card terms as some will even slip a fee in here as well.

And also double check that purchases abroad have a similar credit period to the one you enjoy back home, again you could be caught out and start paying interest straight away.

If you travel abroad fairly regularly it may be worth having a card purely for such trips, which has good terms and low fees and that you can easily keep track off.

What advice would you give people when using credit or debit cards abroad? Please feel free to leave a comment below.

© Cheapflights Ltd Craig McGinty

Comments

[Rob Box]

In the UK it's quite simple: get a Liverpool Victoria or Nationwide card and save money.