Credit Cards - Credit card use abroad brings extra charges - 20/05/2008

Travellers, who use credit cards when they are abroad are being advised that using their plastic, could have added charges from their provider.

A report, produced by the financial website, Moneyfacts found that, most credit card companies add foreign usage fees to card balances for purchases and cash withdrawals.

Michelle Slade of Moneyfacts said: "Most credit cards charge a foreign usage charge, some as much as three per cent for both purchases and cash transactions. This charge is applied each time the card is used and can soon mount up to a significant amount."

She went on to explain that using debt cards at ATMs overseas can also cost more, with minimum charges and conversion rates often applying.

A recent study from price comparison site, uSwitch.com revealed that consumers spend £23 billion on debit and credit cards, via either purchases or cash withdrawals while overseas a year, incurring £686 million in charges.
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