DEBIT & CREDIT CARDS ABROAD




CHARGES OF JUST OVER £1BN ARE BEING PASSED ON BY BANKS TO UK CLIENTS WHEN USING THEIR CREDIT AND DEBIT CARDS WHEN TRAVELLING OVERSEAS.

These fees are accumulated in a number of different ways.  The average transaction fee for paying by debit card is 2.8%.  When using an ATM, the average fee is 1.39% plus a transaction fee of 2.5%.  There are a few banks, such as TSB, that also charge a fixed fee of up to £4.50 per transaction when spending overseas or withdrawing cash.

UK traveller overseas holiday spending 

There are some fee free credit cards which can potentially cut the cost of two major holiday purchases – the hotel and the car hire.  However, with some cards even if you pay off the balance in full you will still be charged interest on the cash withdrawals from the day they are made, which could be at 18.9% APR or even higher.
 
There are also some new brands offering fee free spending abroad  – such as Monzo and Revolut.  However, beware as cash is usually capped at a low amount – such as £200 per month or £200 from ATMs, and then a charge can apply.
 
Pre-paid currency cards are another alternative but beware that it is unlikely they can be used to guarantee payments for hotels or hire cars and there is the time and effort to organise them.
 
Another way that hidden charges can rack up is the introduction of what is called Dynamic Currency Conversion.  These arise when you put a card into a payment terminal and are asked whether you want to pay in pounds sterling or the local currency.  If you choose sterling, you could end up paying nearly 8% more than you need to.  Always choose the local currency instead!
 
According to a recent study, the average conversion cost on these ‘dynamic’ transactions is 7.7% and nearly a quarter of card spending abroad happens dynamically.  The estimated additional costs for the British traveller will be nearly £500m this year.
 
So what is the solution?
 
The Weatherbys debit card is simple, straightforward and good value:
 

  • No fees for overseas transactions;
 
  • No fees for overseas ATM cash withdrawals;
 
  • No cap on the amount you spend or withdraw, if you have cleared funds available; and
 
  • Our currency conversion is extremely competitive at the VISA conversion rate with no cost added by Weatherbys.

BECOME A WEATHERBYS CLIENT

To find out more about Weatherbys Private Bank and our services, please contact the Private Bank team