A shocking 45% of 2,000 surveyed holidaymakers have been slapped with charges for using their bank cards outside the UK in the last year.
With ONS data showing UK residents made a whopping 86.2 million trips abroad last year, and an average cost of £21.79 per person on bank card fees, Brits could be collectively losing £845million.
The research, conducted by Post Office Travel to mark the launch of its Travel Money Card at all 11,500 branches, also found that a staggering 36% of travellers are clueless about the fees tied to using their debit or credit cards overseas.
Laura Plunkett, head honcho at Post Office Travel, said: “Our research has not only shown a lack of awareness around bank card fees abroad, but that 21% of people also exceed their holiday budgets, which means it’s really important to be aware of any hidden charges that could be adding to that cost.”
She also warned, “While it is possible to pay with your bank card on holiday – many banks will charge a fee for every single transaction, which can really add up. Card fees can be avoided by using a pre-paid travel card.”
Plunkett didn’t stop there, highlighting another pitfall for unwary travellers: “But it’s not just card fees to consider, exchange rates can also fluctuate daily and between banks, so if you pay as you go on a bank card, you can never be certain you’re getting the best deal for your holiday money.”
Despite a whopping 69% of travellers being aware that exchange rates can fluctuate daily, over half (54%) were oblivious to the fact that different card providers offer varying rates.
A mere one in 20 people knew the exact amount their bank would charge them for using a debit or credit card abroad. Almost half (47%) didn’t realise they could incur charges when spending on a credit card in local currency.
The reasearch shows a need for Brits to become more savvy about overseas payment methods. However, it was found that 54% have refrained from using a specific card abroad due to fear of unexpected charges.
Despite this, according to data from OnePoll.com, 39% have inadvertently used the ‘wrong’ card and incurred a fee as a result. With nearly a quarter (24%) utilising a digital wallet on a smartwatch or phone to make payments while travelling.
As a result, 66% prefer to use cash when abroad, with 47% doing so to dodge card fees. However, 43% of those who prefer cash say it helps them keep track of their spending, and 25% believe it’s safer.
Even while taking precautions, one in five travellers still managed to exceed their holiday budget.
When quizzed about their biggest expenditure, 35% of people said they splurge the most on food and drink, followed by experiences at the destination (19%), or once-in-a-lifetime activities (18%).
A survey disclosed that 14% of respondents spend the most money on keeping their children entertained, while 16% splash out to celebrate special occasions during their trips.
The study has uncovered the top three holiday experiences that are often too pricey for travellers: one in 10 can’t afford the thrill of whale or dolphin watching, 11% find a room with a sea view out of reach, and 10% can’t justify the expense of flight upgrades.
By sidestepping those pesky unexpected card fees, holidaymakers could redirect their funds to these enriching experiences, making their trips even more memorable.
Laura Plunkett remarked: “Our data shows that despite the world going increasingly cashless, a lot of us are still relying on it to manage our holiday spending money.”
“We advise our customers not to leave their holiday cash until the last minute. Exchanging cash at the airport or a ferry port can often mean getting the least competitive rates, and you can get charged if you need to convert any currency back to sterling.”
“While some may feel cash is a good way to monitor their spend, a travel money card where you can add a set amount can also be beneficial, especially if you require multiple currencies for a trip giving peace of mind you won’t incur additional charges or risk losing your main credit or debit card.”