Holidaymakers warned not to use credit cards abroad
People planning to head overseas for holidays this year are being encouraged not to use their debit or credit cards while away, as they face charges each time they utilise UK-issued plastic abroad.
According to MasterCard supplier EZPay, banks made around £825 million in 2010 thanks to hidden fees.
Paul Smith, managing director, explained that investing in pre-paid cards can help jet-setters steer clear of these fees, while enjoying the convenience of paying by plastic.
"The banks love to encourage card use overseas by saying they can be used just as simply as at home, but they never mention the charging that goes on," he remarked.
In addition to these overseas charges, card users are also faced with an automatically poor exchange rate which, as EZPay observed, means more money is skimmed off the top with each transaction.
Figures from the UK Cards Association also indicate that charges demanded by banks equates to approximately three per cent of all cash spent by overseas Brits on credit and debt cards.
Use the Myfinances.co.uk comparison tables to find the best deal on a new bank account
Comments
Newsletter sign up