Holidaymakers are being stung by overseas charges of over £5 billion annually
It can be very confusing when using bank cards abroad.
Some debit cards can be worse than credit cards, despite what some holidaymakers may think.
However, the true cost of using a bank card abroad has recently been revealed.
It’s certainly a sobering notion regarding how much is lost every year.
Prepaid card provider FairFX found that a huge £5 billion is lost by consumers every year due to bad rates and currency fees.
Many of these failings fall under poor airport rates and using a card abroad to rack up fees.
Of this amount, it also found that over £2 billion is lost in leftover currency.
Next time there are some spare euros in the suitcase, it could be worth exchanging them back.
Using a card abroad can create huge fees unless using the correct card
A few smart moves can ensure that we take back control of our currency choices
It also found that if paying with sterling abroad instead of the local currency, it can equate to over £380 million a year.
With some of the fees as high as 10 per cent, holiday goers could be losing out on as much as £100 a day.
Other terrifying costs show that travellers could lose the same amount if getting money from the airport due to the bad conversation rates compared.
This figure jumps when using a cash machine abroad, with an average of £190 million being lost per year on fees.
Ian Strafford-Taylor, CEO of FairFX, commented: “Consumers may be forgiven for thinking that bad currency decisions only cost a couple of pounds here and there but our new investigation reveals the true extent of how much we’re missing out.
“Fortunately, it’s not too late and a few smart moves can ensure that we take back control of our currency choices and save significantly whenever it comes to spending money overseas.”
Withdrawing cash abroad can also result in lost money so its best to withdraw it before going abroad
However, by understanding how to avoid them, travellers can avoid being stung.
Martin Lewis has the best advice on what cards have the lowest fees when abroad.
It is also worth noting that one card stands out from the rest.
The Monzo card has no fees when abroad, however it does currently have a 15,000 person waiting list.