The hidden cost of using your cards abroad
14/07/2008
With 309 million overseas transactions on UK-issued bank cards taking place in 2007 and holidaymakers now withdrawing £7.1 billion from overseas cash machines, Airport Parking and Hotels, the long stay parking specialist, has created a comprehensive list outlining the widely varying costs of using your credit and debit cards abroad on its website (linked below).
The table highlights which debit and credit card companies are charging consumers the most when spending on their cards or withdrawing cash while on holiday.
Capital One credit cards proved to be the least cost affective, charging £25 to withdraw £500, closely followed by American Express, Egg and Virgin Money all of which will charge up to £18 to withdraw the same amount of cash. Nationwide credit cards however came out on top as the only company not to charge extra interest to spend on the card, as well as offering the lowest rates to withdraw cash, charging only 2% interest, working out at £10 for £500.
Nationwide was also the best company when it came to debit cards, as it is the only one not to charge extra to either spend or withdraw cash abroad. Unfortunately the same could not be said for Lloyds TSB and Halifax, which worked out as the most expensive debit cards to spend on abroad, charging 2.75% + £1.50 per purchase made. NatWest debit card was the most expensive to withdraw cash, charging 2.25%, however they do impose a £4 maximum on this.
Nick Caunter, Managing Director of APH says that: “With all the extra costs being added to travel at the moment, we feel it is important for savvy travellers to know of any extra expenses that may be avoided. The Know Before You Go series is in the news section of the APH website and aims to provide our customers with a variety of useful information which can help avoid unnecessary costs with a little knowledge before they leave on their holiday. The information ranges from hand luggage allowances and now to charges applied when using debit and credit cards abroad, helping to save the traveller money.”