News
Travellers warned over credit card use abroad
29 March 2006
Travellers are being warned that using their credit card abroad could cost more than they expect.
Research by financial research company Defaqto has found that people using credit cards in Europe will face an average 2.66 per cent levy on their transactions.
Furthermore, 85 per cent of all credit cards make a 2.75 per cent charge on transactions abroad.
Holidaymakers are also warned that they could be hit by unfavourable exchange rates.
Defaqto head of banking David Black said: 'When travellers return home and check their statements, apart from the transaction charges, they could also suffer from a poor currency exchange rate.
'Transactions converted into sterling by Visa or MasterCard will be at a competitive rate. However, if the trader uses "dynamic currency conversion" this is usually at a much worse conversion rate.'
However, there are some benefits to using your credit card abroad.
The Court of Appeal has ruled that consumers should be offered the same protection abroad for breach of contract or misrepresentation from retailers as they get in the UK.
The ruling means that tourists can claim between £100 and £30,000 against the credit card company, but this could result in further charges.
Mr Black explained: 'Card holders are also advised to keep an eye on their credit card company's overseas charging levels as providers may try at some time in the future to put up charges to meet new claims brought as a result of the Court of Appeal's ruling.'
© Adfero Ltd
Research by financial research company Defaqto has found that people using credit cards in Europe will face an average 2.66 per cent levy on their transactions.
Furthermore, 85 per cent of all credit cards make a 2.75 per cent charge on transactions abroad.
Holidaymakers are also warned that they could be hit by unfavourable exchange rates.
Defaqto head of banking David Black said: 'When travellers return home and check their statements, apart from the transaction charges, they could also suffer from a poor currency exchange rate.
'Transactions converted into sterling by Visa or MasterCard will be at a competitive rate. However, if the trader uses "dynamic currency conversion" this is usually at a much worse conversion rate.'
However, there are some benefits to using your credit card abroad.
The Court of Appeal has ruled that consumers should be offered the same protection abroad for breach of contract or misrepresentation from retailers as they get in the UK.
The ruling means that tourists can claim between £100 and £30,000 against the credit card company, but this could result in further charges.
Mr Black explained: 'Card holders are also advised to keep an eye on their credit card company's overseas charging levels as providers may try at some time in the future to put up charges to meet new claims brought as a result of the Court of Appeal's ruling.'
© Adfero Ltd
