Over four million Brits holidaying in Europe this month will be hit by hefty foreign exchange fees and transaction charges if they dont use the best credit or debit card.
Steve Willey, head of credit cards at moneysupermarket.com, said: While the strength of the Euro is of concern to holidaymakers, using the wrong foreign exchange product can be even more costly.
A credit card with purchase protection of 90 or more days is the best option for purchases overseas. Not only do the credit cards from the Post Office, Nationwide and Saga (Paris: FR0000185522 - news) offer this, but they also have 0% purchase offers of between three and six months and dont levy foreign exchange fees in Europe. This is a far better prospect than their rivals that charge between 2.73% and 3%.
The Nationwide Flex debit card is the best product for overseas cash withdrawals as there are no extra charges. In contrast, a 100 withdrawal with a Lloyds TSB debit card will incur a £2 transaction charge plus a 2.99% foreign exchange fee.
If you are stuck with an uncompetitive debit or credit card and dont have time to get a new one, the Caxton FX prepaid card is a good option. And if you are worried about overspending, prepaid cards will only allow you to spend what is on the card.
