Hidden costs on credit cards abroad

The Post Office has established that nearly half of UK holidaymakers anticipate using their credit card to shop abroad, accounting for an approximate spend of around £9.4 billion but they could be wasting a vast amount of money on unnecessary fees.

Most credit cards charge, on average, 2.75% for each transaction made abroad. However, it’s not just credit card providers, many debit card providers are also charging fees abroad and 47% of holidaymakers are unaware of these hidden costs.

Over one third of credit card users are unaware that their provider does not charge a fee. There are only two credit cards available that do not charge for transactions abroad, one being the Post Office credit card.

26% of holidaymakers do not have a budget when they are away resulting in many paying for their holiday months after they arrive home. According to the statistics, 69% of women stick to their holiday budget compared to 59% of men.

A spokesperson for the Post Office commented that it’s worrying to see how few people are unaware of these charges, figures show that we are now 4 times more likely to use our credit cards abroad than a decade ago. Holidaymakers are advised to check whether they will be charged to shop overseas when using their credit or debit card.

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