Credit card charges for overseas use are becoming a strain on Britons’ finances, research has revealed.
The study, conducted by Sainsbury’s Finance, found that British holidaymakers withdraw around £14.2 billion every year from overseas ATMs on their credit cards and debit cards. For this privilege, people are paying a collective £391 million in withdrawal fees.
Even travellers who shun credit cards in favour of prepaid currency cards could find themselves paying extra since over 65 per cent of these cards still charge customers for accessing their money abroad. Six per cent of these cards even charge people just to check their balance.
David Barrett, head of travel money at Sainsbury’s, advised people to choose their credit card provider to avoid any unnecessary expenses. “As a nation, we spend a huge amount every year on our holidays,” he explained.
“A person withdrawing the average amount on their debit and credit cards whilst on holiday will spend £41 per year purely to access their cash - and that's before looking at other incurred costs.”
Mr Barrett added that it is important to shop around when choosing a prepaid card or a credit card to take abroad.
