Holidaymakers urged to watch out for credit card charges abroad
As UK holidaymakers head overseas for their summer break Post Office urges them to avoid charges for using their credit cards abroad; which could see people hit with £135 million in unnecessary fees, according to research from Post Office Credit Card.
Last summer, almost half (49 per cent) of holidaymakers used their credit card abroad, spending on average £463 each. Men (56 per cent) are more likely than women (42 per cent) to splash out on plastic while on holiday, spending £494 compared to £428 spent by women. With some providers charging as much as 2.99 per cent each time holidaymakers make a purchase, those that don't opt for a fee-free card could find themselves shelling out for unnecessary charges.
Worryingly, nearly a quarter of holidaymakers (24 per cent) are unaware of the amount their credit card provider charges for overseas transactions. Research reveals people are charged an average £12 in credit card fees. Older holidaymakers tend to be more spending savvy with those over 55 incurring an average fee of £5, compared to £23 racked up by 18-34 year olds.
Holidaymakers' biggest splurge was on nights out (34 per cent), closely followed by visiting attractions (33 per cent) and shopping in duty free (32 per cent). Fourteen per cent of cash-strapped holidaymakers used their credit card because they ran out of money.
Az Alibhai, Head of Credit Cards at Post Office, said: "As millions of people prepare for their summer getaway, we urge them to play their cards right and make sure they are not stung by hefty credit card charges. With sterling strong against the Euro at the moment, those holidaying in Europe will reap the rewards.
"Unfortunately, a worrying 25 per cent of people are unaware of what their credit card fees might be. Savvy sun-seekers should opt for a fee-free credit card which will leave them with that extra bit of holiday money in their pockets.
"Holidaymakers should always insist on paying for items in the local currency as uncompetitive exchange rates mean that goods could end up costing more. Double checking the currency, the amount and the receipt after purchase will ensure you're able to raise any discrepancies there and then as challenging incorrect payments at a later date may prove difficult."
Tips on using your credit card abroad
Opt for a credit card like the Post Office's that does not charge you for using your card for purchases abroad. Some cards will charge up to 2.99 per cent to use your card abroad
Be aware you may be charged for withdrawing money from an ATM abroad. This will either be a flat fee or a percentage of the cash withdrawn, up to about three per cent
If you're using a credit or debit card abroad, some merchants will offer to convert your bill into your home currency. This is known as 'dynamic currency conversion' and you may be charged a higher exchange rate for this service. Check the bill before paying and always ensure you are billed in the local currency
Tips on protecting your credit card abroad
Using your credit card abroad can appear as unusual or suspicious activity to your bank, who may assume the card has been stolen or cloned and they may stop without your knowledge. It is important to alert your credit card company before heading off on holiday
If you are planning to withdraw cash on your credit card, always check that the machine has not been tampered with
If you are contacted by your credit card provider when on holiday, always agree to call them back. Fraudsters may pretend to be your provider just to get access to your details
In a restaurant or café, always ask for the payment terminal to be brought to you. Never let your card out of sight
Never leave your card behind the bar to run a tab
If you are planning to make a large purchase abroad then contact your provider and let them know, otherwise you may not be able to complete the transaction
Do not use your card when under the influence of alcohol. Your guard will be down and you may be easily conned
Contact your provider immediately if you have problems using your credit or if it has been stolen
As well as storing your card providers contact number in your phone, always keep a written note of the number just in case you lose your phone
Leave your credit card and lost card number with your family when going abroad. If your card is lost or stolen then they will have all the details to hand
Post Office's credit card also offers zero per cent on balance transfers for the first 14 months and zero per cent on new purchases for the first three months. Customers can also benefit from zero per cent on new balance transfers for five months in the second and third year. Applications can be made online, over the phone, or in-branch. The Post Office Credit Card is a MasterCard provided by Bank of Ireland UK
To find out more about the Post Office Credit Card and Post Office Travel Money, log onto postoffice.co.uk.