Ten reasons not to use your debit card abroad

The number of banks charging customers for using their debit cards abroad has almost doubled, according to research by uSwitch.com, the comparison website.

Using a prepaid card will avoid these charges. The Caxton FX prepaid currency card is specifically designed for spending overseas. It looks and acts like credit or debit card but is preloaded with cash (similar to a pay-as-you-go mobile phone.) It charges no application fees, no monthly fees, no transaction fees and no ATM fees overseas.

Here are 10 reasons why it's a bad idea to use a debit card abroad and why the Caxton FX currency card is a good-value alternative.

1. Expensive cash withdrawal charges

Debit card: £3 minimum charge. Caxton FX card: £0

Withdraw money from an ATM overseas with a debit card and you will be charged a fee, usually around 2.5% of the amount withdrawn, with a minimum of £3.

Overseas cash withdrawals are free with a Caxton FX card, which makes the Caxton FX card unique in the prepaid card universe.

2. Extortionate transaction fee each time you buy something

Debit card: £1.50-£2. Caxton FX card: £0

Some debit cards, including those issued by many high-street banks, make holidays even more costly by charging fees every time you spend. You can pay between £1.50 and £2 for a 'point of sale' fee.

3. High loading fee

Debit card: 2.75%. Caxton FX card: 0%

Almost all debit cards secretly add a ‘load'; an extra charge that consists of 2.75%. This means if you buy a meal for £100 Euros and pay for it on your debit card, it will cost you £102.75. And it isn't broken down on statements so you won't notice.

4. A penalty charge each time you spend

Debit card: £1.50. Caxton FX card: £0

A few debit card providers have decided to profit even further from holidaymakers. Spend on a Halifax, Intelligent Finance, RBS, Natwest or Lloyds TSB debit card and you'll pay a fee each time. For example, Halifax adds £1.50 per transaction. The Caxton FX prepaid card does not levy this penalty.

5. Danger your debit card will be blocked

An increasing number of holidaymakers have found their bank card blocked when they go away - even if they informed their bank they were going abroad. The Caxton FX card is designed for overseas use so your card won't be blocked automatically, unless there has been a fraudulent transaction.

6. If you lose your debit card- that's it

If you lose your debit card when you're on holiday, you can ring up to get it blocked - but they won't send you a replacement. If you're somewhere far flung like Australia this can be a serious inconvenience.

In comparison, Caxton FX will send you a replacement, wherever you are in the world, within 48 hours.

7. Difficult to budget

With a debit card you can spend without realising but with a prepaid card, you can't spend more than you load - something that makes prepaid cards a good budgeting aid.

8. The exchange rate changes every day

Each time you use your debit card, the rate will be different, depending on how strong the pound is at that time. When you buy currency with Caxton FX, you lock into the rate you buy at, so there is no need to worry about currency volatility and you will always know how much you're spending.

9. Poor exchange rates

The exchange rates you receive on your debit card are not competitive. Caxton FX offers a best exchange rate guarantee - if you find a better rate elsewhere, they will refund the difference.

10. Cardholder discounts

Caxton FX are offering a range of discounts exclusive to their cardholders- making your holiday even cheaper! Choose from a range of discounted hotels - see caxtonfxcard.com for more details.