Using Credit Cards Abroad - Costs & Advantages
If you travel a lot, then be careful which credit cards you decide to take with you, as some will charge you more than you think for the privilege of using them overseas.
If you go abroad regularly, then you need a card that doesn’t levy overseas usage fees.Credit cards can be a safe and convenient method of payment, particularly when you are abroad, but they can also be costly. Most providers levy overseas usage fees which can significantly bump of the costs of a foreign transaction. British consumers spend about £300m a year on foreign usage fees according to Nationwide building society.
Credit card exchange rates are based on the Visa and Mastercard wholesale rates, with a loading percentage usually added by the card issuers. This can vary from 0% to 3% depending on the credit card. The rate applied may also be different depending on where in the world you are – some providers levy higher charges in countries outside Europe.
When selecting a credit card for use abroad it is also worth looking at the other facilities on offer, such as the provision of a replacement card in the event of the loss or theft of your own. Extra benefits may include an international assistance package or cheap travel insurance deals for flight delays, lost luggage and personal injury.
Source: Moneysupermarket
Update: Research by Santander who sponsor the ex British Formula 1 World Champion Lewis Hamilton reportedly found that we Britons squandered around one hundred and twenty two million pounds in foreign exchange fees while using our credit cards on holiday on foreign shores. One in five British tourists used their credit cards as their main means of payment while travelling, reportedly racking up a staggering spend of one and a half billion pounds in 2009.
