Prepare your plastic to avoid getting stung abroad

With the cold weather refusing to budge and half term approaching, many Britons will be planning a quick escape to warmer climbs over the next few weeks.

If you’re planning on taking a holiday, it’s important to remember that it’s not just your flights that you need to shop around for – hunting for a good deal on foreign currency credit card transactions could save you a packet, especially with a weak pound putting a squeeze on holidaymakers’ wallets.

According to moneysupermarket.com, avoiding the bureau de change at the airport is the first step towards saving some holiday pennies. Travellers taking out €1000 from the Travelex in Heathrow airport would spend £953, a hefty £68 more than someone using the leading debit card for cash withdrawals when on holiday in Europe.

Prepaid cards are becoming increasingly popular with travellers and are especially good for those travelling on a budget as they as they can be topped up with currency before leaving and used just like a debit or credit card. Of course, you still need to shop around to ensure you’re getting the best deal.

Peter Harrison, travel money expert at moneysupermarket.com, said:

“Consumers should ensure they read the terms and conditions when signing up to a prepaid card as not all providers offer the same rate of exchange and some can charge for transactions in certain situations; for example, using a Dollar for transactions in Europe. Ultimately, it’s about understanding the product and knowing when and how to use it to ensure you’re getting the best deal.”

But if you’re planning on using a debit card rather than a prepaid card, be aware that many banks and building societies charge a foreign usage transaction fee of between 2.75% and 2.99 % every time you make a purchase on your card; ATM fees are also common for most debit and credit cards.

Peter Harrison added:

“It can be really expensive for holidaymakers to use their current accounts or credit cards abroad and it’s crucial they check the terms and conditions of their product with their provider before travelling. For consumers with a high-interest current account, there’s no harm in opening a Nationwide current account specifically for their trips away.”

“No one product is the perfect partner for holiday travel so customers who are unsatisfied with their current provider need to think about their requirements and shop around for the product that best fits their needs.”