Brits will be charged millions on card transactions whilst on holiday
April 21, 2008
Brits that are planning to jet off abroad on their holidays this year will most likely be taking their credit and debit cards along to purchase items or withdraw cash, and this is good news for banks and card providers because it means that they will be netting millions in profits from their customers. According to a recent report debit card holder are set to be charged around £318 million in fees over the course of this year for debit card transactions and withdrawals abroad, whilst credit card customers are set to pay around £368 million.
In total, banks and card providers are therefore expected to net an astonishing £686 million in fees and charges for the use of credit and debit cards abroad, with around 284 million overseas transactions expected to be made, equating to a total of around £233 billion spend on plastic overseas on plastic cards. Many banks now charge an average fee of £1.19 on debit card transactions made overseas, and the number of banks charging this fee is on the rise.
The research was carried out by uswitch.com, and one official from the site said: “The ever-increasing plethora of overseas fees and charges on debit and credit cards could leave consumers with a holiday hangover if they don’t do their homework before boarding the plane. Charging a fee for every purchase made overseas on a debit card is a lucrative bandwagon and one that is well worth providers jumping on. The revenue from these charges represents 9.5% of the total income made from fees on overseas transactions.
Any consumer who holds a debit card with a bank levying these charges should think carefully before handing their card over the counter whilst abroad. On a two week holiday it’s not unfeasible for someone to pay for 14 meals with a debit card - with a transaction charge of up to £1.50 for each use, the charges could soon add up to £21 with foreign exchange fees on top.”
Related Articles
- Card providers set to make a fortune of British travellers Credit card companies and banks are set to make a fortune out of British holidaymakers over the course of this year, as a result of
- Consumers want convenience over troublesome safety procedures when shopping online Recent research that has been carried out by the Abbey has shown that when it comes to the prevention of online plastic card fraud, or
- Holidaymakers enjoying benefits of pre-pay cards A recent report has shown that many holidaymakers are now turning to pre-pay cards in order to fund their spending abroad. The report suggests that
- Many cardholders missing out on their rewards A recent report has highlighted how many rewards based credit card holders are missing out on their rewards by failing to claim. These credit cards
- Improved warranty cover offered by Nationwide The Nationwide Building Society has recently announced some changes to the warranty cover that it offers on its credit cards, which official state will benefit
Comments
Got something to say?