Holiday Credit Card Rip Off Exposed

Product information company Defaqto have warned holiday makers that credit card companies are making millions of pounds out of them when they use their cards abroad.

Some credit card companies impose foreign exchange conversion charges of up to 2.75% for every transaction made abroad, while the majority of card holders are oblivious to these charges.

The group said that British holiday makers spent a total of £30 billion on 64 million overseas trips last year.

Defaqto reported that only four standard credit cards do not impose extra foreign exchange charges on cardholders. The Lombard Direct Mastercard and three provided by Nationwide building society are the only exemptions.

Others, such as the SAGA credit card, do not impose extra costs for purchases within the EU, but charge 1% for every transaction made outside of the EU. Defaqto are advising cardholders to check their statements carefully on return from holiday, as incorrect exchange rates can be inadvertently applied.