Those of us lucky enough to be heading abroad for their summer holidays are likely to be hit with a collective excess cost of £327 million in credit card fees.
It’s estimated that as many as 12 million Brits will be affected by the fees, as more of us are turning to our credit cards to fund our breaks in the current economic climate.
Much of this has to do with a lack of understanding for the credit cards that we hold. Many of us choosing choose to use a card that isn’t well suited for spending abroad or to withdraw cash with it, something 60% of us plan to do whilst away. The latter cost of at least £3 a time and with hefty cash advance interest charges applied the second we step away from an ATM.
It’s not just credit card users who will be suffering, debit card users potentially face similar fee excesses, with a typical exchange fee of 2.75% and purchase fee of around £1.25 each time their card is used.
So what can you do to lessen the impact these fees have on your holiday this year? Well, you could opt for a Prepaid card and leave your other cards at home.
Prepaid cards, like the T24 Black Card, offer a real credit card alternative that can help you to reduce the fees you get lumped with when making purchases abroad. Our exchange rate fees are typically lower at 1.8%, there are no added purchase fees and we won’t charge you the earth to get cash out of an ATM. Our card is also a US dollar card, so if you’re planning to visit the States this year you’ll avoid FX fees altogether, making it a much better bet for keeping your holiday budget in check.