Holidays are the highlight of everyone’s year. After months of planning, saving and dreaming about our destinations, when we finally get there, we want to get the most bang for our buck.
However, there is one expensive slip up that even the most experienced flyer is guilty of, and that is the grey area of bank cards. It can be confusing to know which cards carry hidden charges and which are free to use, but one unsuspecting culprit isn’t actually the credit card – it’s the debit card. Yet, whichever you use, one thing is for certain: using bank cards abroad is a costly procedure, even if it is just for small purchases.
But just what is the true cost of using your bank card abroad? Well, according to research by prepaid card provider FairFX, a whopping £5 billion is lost each year due to additional charges and bad currency rates on card transactions.
Many of these fees can be linked to the infamous prices found in airports, with an average of £190 million lost each year to ATM charges.
The research found that choosing to pay in sterling rather than the local currency is equal to around £380 million in losses a year. Moreover, with fees as high as 10% per transaction, holidaymakers could be losing out on as much as £100 a day.
Meanwhile, over £2 billion is lost in leftover currency each year thanks to those loose Euros in the bottom of your suitcase. Exchanging money last minute – usually at the airport – also results in poor exchange rates. Hence, it is vital that travellers find the best exchange rate before they fly.
If you’re travelling soon and want to compare competitive exchange rates, find the best deal today by clicking here.