Card providers set to make a fortune of British travellers

 

April 24, 2008

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 holidaymakers using their plastic abroad and clocking up a range of expensive fees and charges associated with credit and debit card transaction fees. In total card providers and banks are set to make £686 million in plastic card charges over the course of this year, as they continue to make huge charges for plastic card transactions made whilst abroad.

One official involved in the research into these card fees 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.”

It is thought that debit card holders will be paying the grand sum of around £318 million to their banks over the course of the year in various foreign transaction fees, and credit card holders will be paying even more – around £368 million – to credit card providers. In total Brits are expected to make around 284 million plastic card transactions whilst abroad, and this will amount to around £233 billion being spent on plastic cards abroad altogether.

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