Fans heading to South Africa urged to watch card fees
England fans visiting South Africa are set to spend around £135 million during the World Cup but fans could be hit by punitive foreign exchange fees unless they are careful about their spending in the ‘Rainbow Nation', Santander has warned.
With a Rand restriction in place meaning you can only take up to 5,000 SA Rand (around £450) in local currency in or out of South Africa, football tourists will rely on card purchases or ATM withdrawals for the lion's share of the £2,700 they are each forecast to spend on average.
Research by Santander reveals that almost half of British travellers (47 per cent) withdraw three quarters of their spend using an ATM machine whilst they are abroad, equivalent to £2,025 for the typical World Cup tourist.
Withdrawing money from ATMs abroad typically will incur the following charges:
Foreign exchange fee - around 2.75 per cent: AND,
Cash handling fee - 1.5 per cent of the transaction (minimum £1.99)
This means that if a Briton withdraws £2,025 at an ATM in South Africa, they would pay around £86 in fees. Fans could save this amount, however, by using a product such as Santander's Zero Current Account, which charges no fees for customers using cash machines or spending on their debit card anywhere in the world. The Santander Zero Current Account is available to new and existing mortgage customers who have their main current account with Santander or switch using Santander's Account Transfer Service, as well as customers who hold a Santander investment product or open one.
Nici Audhlam-Gardiner, Director of Banking, commented: "The Rand restriction means football fans won't be able to take much local currency to South Africa, so they will be relying even more heavily than usual on ATM withdrawals and card transactions. People should be aware that they can save themselves a lot of money if they have a debit card that allows free ATM access and no charges on debit card transactions worldwide, like the one that comes with our Santander Zero Current Account."
After cash, credit cards are the most popular way to spend abroad (20 per cent), with four times as many people saying they use them for the majority of their purchases abroad compared with travellers' cheques (five per cent).
Emma Roberts, Director of Santander Cards, said: "Britons using credit cards abroad will normally incur a foreign transaction fee of around 2.75 per cent on all purchases they make. The Santander Zero Credit Card is one of the only cards on the market to offer fee-free foreign usage anywhere in the world, so travellers can cut out unnecessary costs when spending abroad. It also has no fee for cash advances, making it ideal for those rare times you might need to take out cash in an emergency."
Santander has issued the following advice for football fans going to South Africa:
Make sure you have comprehensive travel insurance. Santander Travel Insurance offers unlimited medical expenses and a 25 per cent online discount
Crime levels in South Africa are high so ensure that your travel insurance policy covers any possessions you take with you
Nearly a third (29 per cent) of the home contents insurance products currently on the market do not offer cover for people who spend more than thirty days away from home. With the World Cup lasting 31 days from start to finish (11 June - 11 July), those fans who plan to stay for the whole tournament need to check with their insurer to make sure that they have adequate cover for their home while they are away. With Santander's ‘Peace of Mind' Insurance, customers away from home are covered for up to 60 days
When paying by card, you should always try to pay in the local currency, to avoid being charged a dynamic currency fee for converting the purchase to sterling
Make sure you make a note of your bank's overseas customer service number and take itwith you in case you have any difficulties using your credit or debit card while abroad
Always protect your PIN number, never write it down or give it to anyone, and cover the keypad while entering the number at ATMs
Don't accept offers from strangers to ‘help' with ATM transactions
Only use ATMs in well-lit areas with lots of traffic
Until the end of the World Cup, Santander Insurance is offering new Santander mortgage customers and existing Santander Zero Current Account customers £100 cashback if they opt for a combined buildings and contents Peace of Mind or Essentials insurance policy with the bank.
Santander Zero Credit Card:
The Santander Zero Credit Card is available through branches and over the telephone and offers fee-free foreign exchange on spending anywhere in the world and no cash withdrawal fee. It also offers 0 per cent on purchases for six months and 0 per cent on balance transfers for six months, with no balance transfer fee for existing Santander customers who have a current account, mortgage or investment product with Santander.
Santander Zero Current Account:
A current account for new and existing Santander mortgage customers who have their main current account with Santander or switch using Santander's Account Transfer Service, as well as customers who hold a Santander investment product or open one. This revolutionary account has no overdraft fees, fee-free foreign transactions and cash withdrawals worldwide and pays five per cent in-credit interest.
Santander Travel Insurance:
Santander Travel Insurance offers unlimited medical cover, up to £5,000 for cancellation and up to £1,500 cover for personal property as well as £1,000 cover for lost or stolen money and a £25,000 limit on legal expenses.