Brits Risk £58m A Month In Extra Charges Using Cards Abroad

Research launched today by Travelex reveals consumers are still relying on credit and debit cards abroad, and last month Brits stumped-up £58m in extra charges at ATMs and in retail outlets abroad.

This is the equivalent of sending 20,000 families of four on a week-long holiday to the Med.

Last year people from the UK used their cards for overseas transactions totalling £25.2bn - £18.1bn on credit and debit card purchases and £7.1bn on cash taken out of overseas cash machines (ATMs).

The Travelex research shows in the last month alone 20% of holiday makers used credit or debit cards in retail outlets abroad as their main source of travel money, incurring charges in the region of 2.75% totalling £43.6m; and 26% of consumers relied on withdrawing local currency at ATMs where a overseas fee of 1.5% charge incur charges worth £14.4m.

Martin Bamford, a personal finance expert and best-selling author said: "The results shows even in tough economic times, consumers are not being smart with their money when travelling abroad.

"For each of these transactions consumers are risking uncompetitive and fluctuating exchange rates and overseas charges.

"Whilst many would see using credit and debit cards as a way to spread finances and have easy access to money, the charges they incur will actually cost them more money in the long run."

The Travelex research showed men are more likely to use cards than women with almost half (45%) of men using cards abroad compared to just over a third of women (36%).

Nearly half of all 18-24 year olds (49%) will use foreign cash purchased pre-trip, whereas the least likely to use cash are the 25-34 year olds and the 55+ (39%).

The research also shows the number of people using travellers cheques as their main source of travel money has decreased by more than a half in the past month compared to the last six to 12 months (12% to 5%) although the purchasing of foreign banknotes on the UK High Street remains the most popular foreign exchange product (42%).

(GK)