Wrong plastic abroad costs Brits millions of pounds
Millions of Brits are making the fatal error of using the wrong plastic on holiday which results in sky high credit card fees.
The school holidays are descending upon us and millions of Brits are itching for two weeks in the sun, however, over £500 million is being thrown away by holidaymakers on holiday as a result of using the wrong card.
Each year, approximately 36 million holidays are being taken overseas, which means that approximately £500 million more is being spent than is necessary.
Sun seekers could save between £10 and £50 on a two-week holiday abroad by understanding the spending options on offer.
Due to such a vast number of available cards offering different charges, it is confusing for travellers to know what card is best. However, this confusion is what has led to holidaymakers throwing away precious cash.
The majority of banks charge a foreign usage fee when a credit card is used abroad. This is typically around 2.75% to 2.99%. Cash transactions are more expensive abroad than using a credit card for purchases in shops or restaurants. Withdrawing cash from an ATM can also be very expensive with a credit card.
Charges on debit cards can vary significantly with different debit cards. Therefore, experts are encouraging holidaymakers to compare their bank charges against others before going on holiday.
Many consumers have made the error of assuming there is no charge for using a debit card abroad because there is no cost for using them in the UK.
Prepaid cards are being rounded by specialists as the cheaper alternative as holidaymakers can top up the card according to their budget before jetting off on holiday.
To make sure you are not struck with an unexpected bill on the return from your summer holiday this year, make sure you compare the different charges with different credit cards and debit cards.
Alternatively, a prepaid card could be the solution to your holiday budget.