You are here: Home - Credit Cards & Loans -

Charges soar for overseas cardholders

Written by:

Holiday makers should bear in mind that using debit and credit cards abroad comes at a price, according to price comparison site Moneyfacts.

Michelle Slade, analyst at Moneyfacts, said that in the wake of travellers cheques becoming less popular, more people are resorting to plastic power when they go abroad. However, research from Moneyfacts showed that credit card companies charge customers as much as 2.99% for purchases and cash transactions in foreign countries.

Slade said: “Taking cash out on your credit card is never advisable, even in the UK, as not only is the interest rate much higher than on purchases but you will be charged the interest from day one. On top of this you will be charged a cash handling fee as well as the foreign usage charge if the cash is taken out abroad.”

Debit cards broadly follow the same pattern when used abroad, with some providers charging for both retail and cash transactions. Slade added: “Because in the UK we have become accustomed to free banking, many people automatically assume that they will not be charged for using their debit cards abroad. This is not the case and some lenders charge customers for both retail and cash transactions.

“With everyone concentrating on enjoying themselves rather than concentrating on what they are spending, overseas charges can soon mount up. Customers could find their balance much lower than expected when they get home if they are not careful.”

Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
FEATURE: A package deal

Kate O’Raghallaigh investigates whether good things come in packaged current accounts