Use our UK Finance guide and learn by experience. We outline pitfalls so that you don't have to learn the hard way, as many of us often do.
Credit Cards
Credit card charges abroad
Using a credit card abroad can be quite costly once you take into account the hidden charges being incorporated into your transactions.
That great deal on a trip to South Africa or New York could actually be costing you much more than you budgeted for.
Those using UK credit cards abroad can be stung by excessive charges for foreign transactions. The typical rate for Europe and the rest of the world is 2.27%, but there is no reason why the majority of credit card providers charge this amount when others levy no fee at all.
Lombard direct, Liverpool Victoria ad Nationwide Building Society all carry no charge credit cards used anywhere in the world, while Saga charges 1% outside the EU. Virtual every other credit card provider charges over and above this. Mark Haynes-Newington, commercial director at Defaqto, says: “Overseas transaction fees add to the cost of visits abroad and travellers should check their statements to ensure the exchange rates used the ones current at the time”
Of course, while overseas fees are important you must also check the general APR on purchases made at home too – there is no point having a fee-free credit card overseas that charges 30% and upwards on everything.
