Holiday makers can spend more money than they need while traveling, simply by using the wrong card.
Your daily credit or debit card may seem like a handy option for going abroad, but if you use it abroad you may be charged an additional 5%. Plus, if you need to withdraw cash from ATMs overseas, you could be hit with even more fees.
Certainly, you will face an additional fee as soon as you arrive at the airport and you can try to withdraw cash before your flight. ATMs typically charge higher fees for international withdrawals. This is up to 3% of fixed or total withdrawals in some cases ranging from 1 to 5 pounds.
Fortunately, these charges can be avoided by choosing a right bank or travel card designed for overseas spending. These specialist cards offer many benefits to people spending money abroad, including minimum spending or ATM withdrawal fees, along with additional financial protection.
Travel credit cards
One of the main benefits of travel credit cards is the section 75 protection it offers. This will help credit card companies buy between £100 and £30,000. Additionally, if you pay off your full monthly unpaid debt, you can enjoy interest-free spending on your card.
However, one of the key disadvantages of this card is that it requires comprehensive credit checks. This means that card eligibility may be a condition for your credit history.
Travel debit card
Travel debit cards offer less debt risk than your credit partner, but also less financial protection. Travel debit cards usually provide chargeback protection. This means that if you don't receive the goods or services you paid and the retailer refuses to give you a refund, you can still get your money back from your credit card company.
Recommended travel cards
The market offers a wide range of travel cards from a variety of major banks and providers, each with its own advantages and disadvantages. To find the card that suits your needs, it is important to shop and compare different cards.
Moneysavingexpert And which? For those looking to get the best deals overseas, we have highlighted some of the cards below.
It is important to note that some ATMs still charge fixed or interest on cash withdrawals, so even if the card provider itself does not charge you, you may still face additional charges overseas in some cases. Additionally, if you frequently take cash overseas using your credit card, the risk of damage to your credit score is reduced.
