A recent survey of 2,000 holidaymakers has uncovered that nearly half, a hefty 45%, were slapped with extra charges for using their bank cards outside the UK over the past year. The Office for National Statistics (ONS) data shows that Brits made a whopping 86.2 million trips abroad last year, with the average person coughing up £21.
79 in fees for using their bank cards while soaking up the sun. This means that collectively, British globetrotters could be out of pocket to the tune of an eye-watering £845million due to these pesky charges. The research, carried out to mark the launch of Post Office Travel 's Travel Money Card now available at all 11,500 branches across the country, also found that a staggering 36% of people are blissfully unaware of the costs tied to swiping their debit or credit cards overseas.
Laura Plunkett, at Post Office Travel, weighed in: "Our research has not only shown a lack of awareness around bank card fees abroad, but that 21% of people also exceed their holiday budgets, which means it's really important to be aware of any hidden charges that could be adding to that cost." "While it is possible to pay with your bank card on holiday - many banks will charge a fee for every single transaction, which can really add up. Card fees can be avoided by using a pre-paid travel card.
" Plunkett also pointed out another money trap, saying, "But it's not just card fees to consider, exchange rates can also fluctuate daily and between banks, so if you pay as you go on a bank card, you can never be certain you're getting the best deal for your holiday money." Despite 69% of travellers being aware that exchange rates can fluctuate daily, over half (54%) were unaware that different card providers offer different rates. Only one in 20 people knew the exact amount their bank would charge them for using a debit or credit card abroad.
Almost half (47%) didn't realise they could incur charges when spending on a credit card in local currency, highlighting a need for Brits to become more knowledgeable about overseas payment methods. However, it did find that 54% have refrained from using a specific card abroad for fear of unexpected charges. According to figures from OnePoll.
com, 39% have inadvertently used the 'wrong' card and incurred a fee as a result. With nearly a quarter (24%) utilising a digital wallet on a smartwatch or phone to make payments while travelling. Consequently, 66% prefer to use cash when abroad, with 47% doing so to avoid card fees.
However, 43% of those who prefer cash say it helps them monitor their spending, and 25% believe it's safer. When asked about their biggest expenditure, 35% of people said they spend the most on food and drink, followed by experiences at the destination (19%), or once-in-a-lifetime activities (18%). A survey revealed that 14% of respondents spend the most money on keeping their children entertained, while 16% splurge to celebrate special occasions during their trips.
The study also uncovered the top three holiday experiences that are often too pricey for travellers; a tenth of holidaymakers can't afford to go whale or dolphin watching, 11% can't splash out on a room with a sea view, and 10% find flight upgrades beyond their budget. By dodging those pesky unexpected card fees, holiday-goers could free up more cash to splurge on these dreamy experiences, making their getaways even more memorable. Laura Plunkett remarked: "Our data shows that despite the world going increasingly cashless, a lot of us are still relying on it to manage our holiday spending money.
" "We advise our customers not to leave their holiday cash until the last minute. Exchanging cash at the airport or a ferry port can often mean getting the least competitive rates, and you can get charged if you need to convert any currency back to sterling." "While some may feel cash is a good way to monitor their spend, a travel money card where you can add a set amount can also be beneficial, especially if you require multiple currencies for a trip giving peace of mind you won't incur additional charges or risk losing your main credit or debit card.
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