Overseas transaction charges may hit credit card users hard

Posted 2007-12-12

Travelling abroad this Christmas could cost you more than you think. Many credit card companies charge an extra 2.75% in commission for purchases made overseas – a fact most shoppers are unaware of, according the Post Office.

The Post Office is warning consumers to be aware of “hidden” fees. With holiday travel a favourite pastime for thousands of Britons, many people could be hit hard over the Christmas period. The first they will learn of it is when they see their credit card bills in the near year – too late to do anything about it.

Consumers can avoid unnecessary stress by doing all their holiday shopping at home. This advice is strongly voiced by Post Office Lending Director Gary Fitton: “For many people, going abroad for Christmas is a great way to relax and not have to worry about cooking Christmas dinner. However, many people could be returning from their Christmas break with a lot more than just ‘memories and mementos’ due to hidden card charges.

“Regardless of where people are travelling this Christmas, we are urging holidaymakers to ensure the only baggage they return with is the luggage they are carrying and not unnecessary card charges.”

The top three destinations this year are Spain, the US and France, making up 17%, 8% and 6% respectively of the total travelling trend. According to the Post Office, 49% of these festive voyagers will be pulling out their credit cards while on vacation.

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