Worst banks for fees while on holiday revealed – and how to avoid getting stung
BRITS abroad are being hit with bills of up to £12.74 in extra fees from their bank simply for using their debit cards abroad.
Travellers have forked out more than £400million in bank fees on payments they made while on holiday over the past year, according to new figures from .
The average Brit spends around £300 on their debit card whilst on holiday and about £172 on withdrawing cash from an ATM abroad.
But only 62 per cent of tourists didn't know that they will be stung by fees for using their debit cards to make purchases and withdraw cash from a foreign ATM.
The comparison site looked into how much high street banks charge for using your card to spend £478.20 abroad, £306.70 on purchases and £171.50 through cash withdrawals.
TSB customers are hit the hardest with a £12.74 fee, Santander customers will need to fork out £12.26 on a £300 transaction, and £11.91 for HSBC customers.
How to avoid being ripped-off on your holiday money
FROM waiting until the last minute to buy your holiday money to taking out a travel credit card, here's how you can avoid costly debit card charges on holiday:
- Don't buy cash at the airport - The average exchange rates at UK airports are almost 15 per cent below the market rate, and in some airports it’s even 20 per cent lower, according to finance website .
- Compare travel money companies online - Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute, order online for airport collection so you get the best of both worlds.
- Get a pre-paid card - You can load it with cash before you go away, then use it like a debit card to spend or withdraw money. If you forget to pre-book your currency you can present a Moneycorp Red Explorer card at the airport bureau and still get top online rates. Other cards to consider are the pre-paid Mastercard from Revolut, FairFX and WeSwap — but check the terms and conditions before applying.
- Earn cashback - Cashback sites such as Quidco and pay you when you order your travel money through them. If you click through from Quidco to Asda Money, order £500 of euros, you could get one per cent — £5 — into your quidco account as cashback.
- Always pay in the local currency - When using a bank card at an ATM overseas you will get an option to pay in pounds or the local currency. The comparison site found that paying in pounds abroad can cost up to ten per cent extra in fees by the ATM operator.
- Get a specialist travel credit card - It pays to get a specialist travel credit card - we've picked out the ones with the best rates.
People who bank with Virgin Money will be far better off when it comes to spreading in another country because they will only be charged £1.50.
This is because the bank only charges when you a flat rate when you use your card to withdraw cash - and it won't charge if you use it to make a purchase.
There are ways of using your debit card abroad without being hit by fees though.
Starling current account holders won't be charged fees when spending or withdrawing cash abroad, while Monzo customers won't be charged on purchases.
but there's a 3 per cent charge on anything over that.
Another good way to avoid credit and debit card fees is by using a travel money card loaded with holiday cash because this won't incur transaction charges.
Or it pays to get a specialist travel credit card - we've picked out the ones with the best rates.
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The research also found that a fifth of tourists only realise that they've been hit by the charges once they're returned from holiday.
And more than half of Brits don't know that it's always cheaper to pay for cash in local currency than it is in sterling when withdrawing money from an ATM while on holiday.
Shakila Hashmi, Head of Money at , said: "Foreign currency and cash cards are an excellent way for holidaymakers to ensure that they aren’t hit with unnecessary fees while abroad but can also help to reduce the overall costs of going on holiday.
"Consumers are encouraged to research their payment options before they travel and be wary of "easy" options offered by banks which so often result in extra charges.
"These extra charges, which hit so many people, amount to a hidden travel costs for tourists."
Where should I avoid exchanging my money?
IF you're a last-minute kind of person and getting your cash out at the airport then you're paying extra for being disorganised.
Last year, holidaymakers at Cardiff airport were caught out, with a £1 getting exchanged for just €0.88.
Airports offer poorer rates than if you order online or arrange to pick it up.
When buying currency, the best rates won’t necessarily come from your bank or even the or .
Use comparison tools like to compare pick-up and pre-order rates.
If you need to get money at the last minute, order online or by phone and pick it up at the airport.
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