Don’t Let Credit Card Charges Spoil Festive Celebrations Abroad

At least 2.4 million people are planning to spend Christmas and New Year’s Eve abroad, according to research by Post Office. But those heading overseas are being warned not to end up with a financial hangover by getting caught out by hidden fees on their credit card.

The rise in cheap flights and the depressing British weather means that many people are planning to spend their Christmas holidays in another country. Just under a fifth of those heading abroad during the Christmas and New Year period (17 per cent) are planning to visit Spain, 6 per cent are planning to visit France and 5 per cent Italy

Around one in ten (8 per cent) plan to travel further afield to the US, with many likely to take advantage of the weak dollar. However, those planning to use their credit card abroad could be in for a big shock because of hidden charges.

The majority of credit cards charge a typical 2.75 per cent for each transaction made overseas. However, Post Office® credit card customers can use their card worldwide without incurring any commission charges.

The Post Office® is therefore urging consumers to check with their bank or credit card provider whether they will be paying a fee to shop overseas before they go.

Post Office® director of lending Gary Fitton said: “For many people, going abroad for Christmas is a great way to relax and not have to worry about cooking Christmas dinner. However, with 49 per cent of UK holidaymakers planning to use their credit card when shopping abroad many people could be returning from their Christmas break with a lot more than just ‘memories and mementoes’ due to hidden card charges.”

As well as no commission charges, the Post Office® credit card also has zero per cent on balance transfers for the first 10 months and zero per cent on purchases for the first three months. In addition it offers zero per cent again on new balance transfers made during the month of the cardholder’s first and second anniversary.

A credit card holder spending GBP 2000 abroad could save GBP 55 in fees by using a Post Office® credit card instead of a typical card charging 2.75 per cent each time it’s used.

Even after the promotional periods, the Post Office® credit card still offers a competitive interest rate of 15.9 per cent APR typical (variable).