Travellers losing out on Euros
New research from AA Financial Services suggests that travellers preparing for their winter sports fix could make their money go further with better management of their holiday money.
The survey shows that 18 per cent incur bank charges by using their debit or credit card as their main means of spending on holiday while more than half (55%) take cash, often bought at unfavourable exchange and commission rates.
Perhaps because people are increasingly booking trips abroad at the last minute, 15% didn't sort out their currency until they reached the airport (6%); or used an ATM (5%) or other source at their holiday destination.
Mark Huggins, director of AA Financial Services, says that with 2011 shaping up to be a good year for winter sports in Europe, travellers could typically be losing up to £30 through charges and poor exchange rates. He suggests that now would be a good time to consider better ways to managing their Euros, for example the AA's new Euro pre-paid card.
"The Sterling/Euro rate is poor enough without piling additional charges on top. Using overseas ATMs can be very expensive with between 2% and 3% typically being lost on bank charges."
Mr Huggins adds that while good deals can be had in the UK to obtain Euros in cash, security is also a real issue, pointing out that up to a fifth of all travel insurance property claims are for lost or stolen money.
"Not only do you risk losing your cash but there is no comeback in the event that you're short-changed or something goes wrong with your purchases."
How the AA Euro Card works
The AA Euro Travel Currency MasterCard Prepaid® Card is loaded in pounds which automatically convert to Euros, allowing travellers to make savings on their holiday spending because it avoids exchange rates being charged when purchases are made. It offers a secure*** alternative to carrying cash, there are no transaction fees (when you spend in Euros) and withdrawals from ATMs are free (when you withdraw €50 or more, below €50 there is a €1.50 fee). In addition, it offers the opportunity to earn AA Reward Points.
The card can be used in the same way as a debit card to make payments or withdraw cash from ATMs and it offers an identical reward scheme to the AA Credit Card, helping holiday Euros go further.
Says Mr Huggins: "I believe it is the only Euro Currency Card to offer a comprehensive reward system."
The card costs £9.95 to purchase although this is credited back to the card if the first load is equivalent to £100 worth of Euros or more". This is a great option if you plan to use a card in mainland Europe and is ideal if you are motoring since the purchase of fuel earns double reward points," Mr Huggins points out.