Card usage abroad on the rise

The number of holiday makers turning to plastic whilst abroad is increasing, but the majority still prefer to take cash away with them, according to research from Halifax. This is counter to how we pay at home, where debit card transactions overtook cash for the first time last year.

Almost a third of consumers (30%) who go on holiday say they use their credit card whilst abroad and around two in five (43%) use their debit card. However when asked what they used five years ago these figures were much lower (23% respectively for both) indicating an increasing trend toward plastic whilst away. Older customers are more likely to use their credit card abroad, 34% of the over 55s use their credit card on holiday compared to just 23% for those aged between 25 and 34.

But whilst card usage is increasing, the number relying on cash remains constant with 71% of holiday makers now, and five years ago, preferring to change their money in advance and take cash away with them.

Over half (54%) of British adults who go on holiday are planning to go on holiday overseas this year. On average Brits spend: £1,500 annually to get away and a £500 whilst they are there.  Choosing the right holiday money can make a huge difference to the amount they have to spend.

The Halifax Clarity credit does not charge foreign exchange fees on any transactions overseas, and there are no cash withdrawal fees when using a cash machine at home or abroad. On average customers have been saving around £32 in foreign transaction fees by opting for their Clarity credit card,

Ken Stannard, Director of Credit Cards says: "With so many options for travel money these days, more and more consumers are becoming aware of the benefits of using plastic abroad. Cards like the Clarity credit card are leading the way in making it easier and cheaper for consumers to use their credit card abroad."

Since its launch the Clarity credit card has saved customers over £2.8 million in foreign exchange fees. The features of the card include:

No usage fees. This includes no foreign exchange fees, no cash withdrawal fee, no balance transfer fee and no annual fee.

One simple and competitive rate of 12.9% APR for all transactions including purchases, balance transfers and even cash withdrawals.

Plus, the benefit of an additional £5 monthly cashback reward for our qualifying Halifax current account customers, when they spend £300 or more on the card in each statement period. This means Halifax Reward and Ultimate Reward Current Account customers could earn up to £120 a year in rewards by combining the two products.