Holidaymakers get their credit cards ready

As the peak of the summer holiday season approaches millions of Brits are getting their cases packed and looking forward to some time away from the doom and gloom of the recent British weather.

Amongst the essential items that many Brits will be taking with them – aside from the sun block and the flip flops – is the trusty old credit card. According to recent research more and more people in the UK are turning to credit cards in the UK when it comes to holiday spending, despite crime rates and extortionate fees.

Research suggests that fewer people that head abroad are now using travellers cheques, and more people seem to prefer the ease and convenience of credit card spending. Many credit card companies have hiked up fees and charges associated with credit card use abroad, raising both cash transaction fees and foreign fees. According to APACS credit card fraud against Brits abroad has also risen in the past year, rocketing from £82.8 million to £118.2 million.

Despite these figures and rising rates Brits still clocked up £23 billion on their credit cards abroad last year, and this year the figure could be even higher.

One industry official stated: "People tend to use cards because they're just more convenient and you know what you're getting. Whereas I think with travellers cheques you're having to pay a whole range of fees. And in some cases, you just don't find they're acceptable in so many places. It's just a mix."

She also added that many cardholders had protection against fraud, stating: "The good news is that if you're the victim, your bank will give you the money back. I think that's another reason why people use cards - because they know they don't lose out financially."

Tom Smith
30th July 2007