Brits set to pay out millions in unnecessary foreign exchange fees

Britons holidaying abroad this summer are on course to pay out more than £73 million pounds in unnecessary foreign exchange fees, new research by Abbey Credit Cards has revealed.

The research found that British holidaymakers are allocating themselves an average budget of £274 per week for spending money this summer, with Londoners enjoying the largest spending kitty at £332 per person, per week.

More than half of British holidaymakers (57 per cent) are planning on using a credit or debit card to pay for purchases abroad, with the average card user putting 41 per cent of their holiday spending money on plastic. But with nearly all card providers charging an exchange fee - typically about 3 per cent - for converting transactions made in foreign currencies, the cost for using a card that charges a foreign exchange fee quickly mounts up, generating a national bill of more than £73 million pounds this summer.

The research found that more than two thirds of Britons (69 per cent) take a credit card away with them when holidaying abroad, with 35 per cent of this group having had to turn to their credit card for unforeseen or emergency spending on previous holidays.

It also revealed that 20 per cent of Britons never holiday abroad and one in 10 Britons who holidayed abroad last summer are still paying off their credit card bill.

Callum Gibson, Head of Credit Cards at Abbey, comments: "Britons holidaying abroad this summer will pay out more than £73 million pounds in foreign exchange fees, a staggering and unnecessary sum at a time when people are having to manage their finances more carefully. The Abbey Zero card offers fee-free foreign usage anywhere in the world, helping Britons to make their holiday spending budget go that bit further. It is also the only such card on the market that has no fee for cash advances, making it ideal for those rare times borrowers might need to take out cash in an emergency.

"For holidaymakers still paying off last summer's holiday, Zero offers 0 per cent on balance transfers for 12 months, as well as 0 per cent on purchases for three months."

Features of the new Abbey Zero include:

The only card on the market with no foreign exchange fee and no cash advance fee
Zero per cent on balance transfers for 12 months and purchases for three months

For more information, visit abbey.com