Brits to spend £23 billion abroad on cards this year
May 2, 2008
According to a recent report Brits are set to spend a whopping £23 billion collectively on their credit and debit cards whilst abroad this year, and this means that card providers will invariably raking in the profits from the various fees and charges that are levied on card transactions and withdrawals abroad.
In fact, the report suggests and banks and card providers are set to make profits of £368 million from credit card transactions abroad, and a further £318 million from debit card transactions, which means that they could net a massive £686 million in total over the course of the year.
The research into card fees was carried out by price comparison site, uswitch.com, and an official from the company stated: “The ever-increasing plethora of overseas fees and charges on debit and credit cards could leave consumers with a holiday hangover if they don’t do their homework before boarding the plane.
Charging a fee for every purchase made overseas on a debit card is a lucrative bandwagon and one that is well worth providers jumping on. The revenue from these charges represents 9.5% of the total income made from fees on overseas transactions.”
He added: “Any consumer who holds a debit card with a bank levying these charges should think carefully before handing their card over the counter whilst abroad. On a two week holiday it’s not unfeasible for someone to pay for 14 meals with a debit card - with a transaction charge of up to £1.50 for each use, the charges could soon add up to £21 with foreign exchange fees on top.”
He also went on to say: “As a nation we now prefer to pay by plastic rather than by cash. Consequently, when we go abroad, most of us will not give it a second thought when taking out a credit or debit card to pay the bill. However, at the very least, consumers should make sure that they are fully aware of the additional charges involved when they use their card overseas. This might go some way to preparing them for the shock when these fees appear on their statement when they get home.”
