Using Credit Cards abroad can Cost Brits £355m

Startling new figures reveal that using the wrong credit card abroad could prove to be fatal for one's wallet.

New data from online comparison site uSwitch.com reveals that flexing the plastic overseas can result in the card holder being stung by various charges such as transaction fees, exchange rate loading fees and cash withdrawal fees.

When these charges are totalled the cost to UK consumers could be as much as £355m, with £204m of that figure coming from credit card purchases and £151m from ATM cash withdrawals.

However, simply using a credit card that does not levy extra charges when used abroad could save consumers a considerable amount of money. Saga and Liverpool Victoria are tow credit card companies that do not charge extra for purchases made within the EU, while Nationwide also do not levy any extra charges when their card is used abroad.

Nick White, director of financial services at uSwitch, said: "There are several factors for consumers to take into account when using credit cards abroad. Your existing debit and credit cards may not always offer the best deals for overseas cash withdrawals and purchases, so some forward planning could be avoid these charges altogether.

"In the long term, it may end up being more sensible for some consumers to have two separate credit cards – one for UK use and one for overseas."

A little research into credit cards that offer the best terms for overseas use will prove financially prudent in the long term. Check what kind of charges a credit card levies for purchases made abroad as well as cash withdrawals.

Alisdair Milton
13th April 2007

More Information:

• Choosing the Right Card
  There are literally hundreds of credit cards on offer in the UK, and the list is growing daily. So, which is the best on offer? It very much depends on how each person plans to use their card. The answer lies in asking one simple question; “What do I want to use a credit card for?”
• Credit Card Charges
  Credit cards appear to have only one cost to a user – the interest charged on purchases, but there are a whole raft of hidden charges just lurking below the surface. So, some cards offer an annual payment option in return for certain benefits. What is the best option, and in what circumstance
• Making Credit Card Fees Easier To Understand
  On average, UK credit card issuers make somewhere between £300 and £400 million a year in fees charged off of UK credit card users who have not fully understood how the credit card issuer has arranged the charging of their fees and who do not complain directly to the card issuer for any excessive or incorrect fee charges. In anyone’s language, this is a staggering amount of money!
• How To Avoid Paying Those Pesky Credit And Debit Card Fees
  It seems that UK credit and debit card providers would like to charge us each and every time we use our plastic cards these days. While the charge for each separate individual transaction may not seem like much, add them up over a month or two and suddenly the amount has some value. So, how do we avoid having to pay pesky fees to UK credit and debit card providers?
• Airmile Credit Cards
  These days most major UK credit card providers offer a vast array of reward programs to try and entice potential new customers to apply for a card. Since the inception of reward packages, one of the most popular packages that applicants go for is airmile credit cards.