Travellers warned over additional charges abroad

Posted 2008-05-18

A personal finance website has warned people going abroad of the additional charges they face when using credit cards there.

Moneyfacts claimed that most card providers apply a charge for using them for retail and cash transactions in foreign countries and that debit cards can also incur additional fees.

The site also advised against withdrawing cash on a credit card due to the high and immediate application of interest and suggested that travellers work out a financial plan of action before they leave the country.

"Most credit cards charge a foreign usage charge, some as much as three per cent for both purchases and cash transactions. This charge is applied each time the card is used and can soon mount up to a significant amount," a spokesperson said.

Travellers are advised against making several small withdrawals as they will be charged for every transaction.

Moneyfacts is a price comparison site that allows consumers to analyse the costs of products such as mortgages and credit card interest rates.

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