| |
|
|
|
|
|
|
|
|
|
TELECOMS INDUSTRY
REPORTS
|
|
Holidaying Brits risk £58m extra credit card charges
03/07/08
Research by
Travelex reveals consumers are still relying on credit and debit
cards abroad, last month Brits risked £58m in extra charges at ATMs
and in retail outlets abroad. This is equivalent of sending 20,000
families of four on a week-long holiday to the Med.
Last year Britons used their cards for overseas transactions
totaling £25.2 billion - £18.1 billion on credit and debit card
purchases and £7.1 billion on cash taken out of overseas cash
machines . The Travelex research shows in the last month alone 20%
of holiday makers used credit or debit cards in retailers abroad as
their main source of travel money, incurring charges in the region
of 2.75% totaling £43.6 million; and 26% of consumers relied on
withdrawing local currency at ATMs where a overseas fee of 1.5%
charge incur charges worth £14.4 million.
Martin Bamford, 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%).
Stephen O’Donovan, Regional Director, Travelex said: “Pre-trip
foreign exchange is almost always a better deal that arranging it
when you arrive. We recommend people research rates and lock-in
favourable ones on products such as our commission free prepaid
currency card. Despite the fact that the Euro is stronger than a
year ago, two thirds of people travelling to Europe have not planned
to counter the impact this will have on their holiday budget . It
means that they are more likely to run out of spending money before
the end of their holiday and then be forced to use more expensive
channels, like overseas ATMs, to fill the shortfall. For a happy
holiday and to return debt free, planning really is the key.”
Kerrie Laird, who has been planning a holiday to Rimini with
girlfriends in July, said: “I spent a long weekend in Rimini last
year for my hen do and really wanted to go back for a slightly
longer holiday. I relied mainly on using my credit and debit cards
last year but came home to much larger charges than I had expected.
This year I’m planning to budget my spending money with 80% on a
Euro Cash Passport and 20% in notes bought from my local High
Street, where I’ve noticed some really competitive rates. I also
feel more secure knowing that if I did lose my wallet or the ATM ate
my card, I wouldn’t be stranded without funds as Travelex will
replace my Cash Passport balance in 20 minutes.”
Nick Gibson, editor
|
|
|
|
|
