Article highlights issues of using credit cards abroad
An article published by a Northern Irish newspaper has highlighted the importance of checking out the costs which can occur by using your credit cards abroad, with spending on plastic while abroad potentially costing you a considerable amount more than using cash.
It comes after the Belfast Telegraph published an informative article on the topic, pointing out that while most banks usually charge around 2.75 per cent or 2.99 per cent for non-sterling transactions, holidaymakers can end up paying as much as six or seven per cent because of issues regarding Dynamic Currency Conversion (DCC).
A common issue which is often completely overlooked by tourists, DCC occurs when the local retailer or bank sets their own exchange rate for their transactions, meaning ultimately that you get charged on top of the set costs from your bank. While aspects such as holiday travel insurance are always at the forefront of attention when booking holidays, things like extortionate currency rates can easily go unnoticed.
Always use local currency
In the article written by Simon Read, which can be read by clicking here, it highlights that using local currency is the best method of avoiding spending over the odds while you are on holiday; it means that you will pay exactly the price marked on the item and not have to worry about the aforementioned bank charges or further costs that may incur.
Also worth considering is purchasing a prepaid card with currency on it, allowing you to spend without having to hand your bank cards over. This could also be a much safer option if the card is misplaced or stolen, as you will only lose the money which is on it rather than your full bank balance potentially. All funds which are lost may also be claimed back if you have taken out an appropriate over 50s travel insurance package.
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