22 May 2009

Category: Travel Insurance News

Avoiding exchange fees on plastic cards 'could save £73m'

Travel insurance customers could find themselves with more money to spend on their holiday if they plan ahead and avoid credit cards with a fee, a bank has advised.

According to research carried out by Abbey, on average British holidaymakers pay for some 41 per cent of their holiday purchases on a plastic card, despite many card providers charging around three per cent for overseas transactions.

The survey found that 57 per cent of people taking a foreign holiday this summer planned on taking a credit or debit card and these "unnecessary" charges could rise into the millions, it was reported.

Head of credit cards at the company, Callum Gibson said: "Britons holidaying abroad this summer will pay out more than £73 million pounds in foreign exchange fees, a staggering and unnecessary sum at a time when people are having to manage their finances more carefully."

Holidaymakers heading to Europe have been advised that the European Health Insurance Card should not be used as a replacement for a travel insurance policy as it will not cover people for return travel to the UK, any private medical care or other events such as mountain rescue, according to the NHS.