According to a recent ABTA report, June was set to be one of the busiest months for travel in 2024, with overseas trips still proving popular for Brits, despite the cost-of-living crisis.
While people may use credit cards on holiday to help spread the costs, there are important things to watch out for.
Here are some top tips to consider for safe card use, starting before you even take off…
Prepare for every eventuality
It could be a good idea to tell your credit card company your holiday dates, so they know when you’ll be using your card abroad – as sometimes they’ll block a card payment if it’s suspicious.
Make a note of your card company’s details in case of an emergency – these are usually on the back of your card.
If you have a problem with something you buy on your card, remember that credit card purchases between £100 and £30,000 may be covered under Section 75 of the Consumer Credit Act 1974. So, it’s worth getting in touch with your card provider to see if they can help.
Check for potential charges
Double-check whether your provider charges for making transactions abroad. Whilst some won't charge for transactions in a foreign currency, some may charge a percentage of the transaction amount. Check this ahead of your trip to avoid unwanted bills adding to your post-holiday blues!
Take multiple payment options
Consider taking a mix of cash and card options with you for some flexibility while you’re away. Cards can be a great option to help you make secure payments, but cash in local currency is often favoured by local retailers.
It’s important to think about whether you pay for transactions in ‘Pound Sterling’ or ‘local currency’ when abroad. Some card providers charge a ‘non-Sterling transaction fee’, but this can often be avoided if you pay in Pound Sterling. Just be aware the retailer or merchant can set their own currency conversion rates, which are sometimes poor. On the other hand, paying in local currency can be a popular choice for some, as the exchange rate is set by your card provider. It’s worth researching your credit card company’s FAQs on spending abroad. There are also many credit cards out there that offer fee-free spending when overseas.
Avoid cash withdrawals
Depending on your credit card, you may be charged a fee for withdrawing cash on it. This could also impact your credit score, as providers tell the credit reference agencies when cash is withdrawn from a credit card.
If you need local currency, it might be best to take this with you. Visit your local Bureau de Change in plenty of time to check they have the currency you need.
Happy holidays!