Holidaymakers should be careful not to be caught out by some of the common money traps when spending on their cards abroad, it has been reported.
Holidaymakers should be careful not to be caught out by some of the common money traps when spending on their cards abroad, it has been reported.
When paying for a meal in a restaurant or purchasing items in a shop by credit or debit card a “foreign loading fee” – or commission charge – is often levied by the provider, explained Emma Simon, writing for the Telegraph.
The standard charge for many banks sits at around 2.75 per cent, although those taking a holiday in Australia, Dubai or another destination outside of Europe could find this figure is higher, she added.
Ms Simon also warned holidaymakers of an increasing trend used by some local retailers in foreign destinations of offering an item for sale on a credit or debit card in pounds sterling.
“Customers could be forgiven for thinking this is a way to avoid the myriad [of] charges that are levied on such foreign exchange transactions,” she stated.
However, an uncompetitive exchange rate may be charged on the items meaning it could cost you more than paying in the local currency.
According to the UK Payments Association, British credit and debit card holders used their plastic in some 317 million overseas transactions – ten times per second – in 2008.
