With many British travellers heading abroad this summer, airport parking specialists Airport Parking and Hotels (APH.com) is helping savvy travellers plan ahead and avoid paying unnecessary exchange rates and bank fees on their holiday spending.
APH.com has compared the different ways to spend money abroad, highlighting the withdrawal, purchase and transaction fees when using debit cards, credit cards, prepaid travel cards and online banking apps abroad with companies such as Barclays, HSBC, Virgin and Monzo.
Travellers using debit cards should be careful when withdrawing money from cash machines abroad as fees can range from 0% with Metrobank and Nationwide, up to 2.95% and 2.99% on each withdrawal with Santander and Barclays respectively. For credit card users, this can increase to an eye-watering 5% with Bank of Scotland, Halifax and Lloyds Bank. When making purchases on a debit or credit card abroad, users should also remember the card issuer is likely to charge both a transaction fee of the purchase price and a percentage of the purchase price to convert to the foreign currency. This can range from 0% to 2.99%, depending on the bank and card payment processor such as Mastercard or Visa.
App-based mobile banks, such as Monzo and Revolut, offer fee-free purchases and no fees for withdrawing cash at an ATM in a foreign currency. However, some stipulations do apply such as the free overseas ATM withdrawals are limited to £200 over a 30-day period and then a 3% fee with Monzo and a 2% fee with Revolut is charged thereafter.
For holidaymakers looking to stick to a holiday budget, prepaid travel cards such as Cannyapp and the Post Office Travel Money card were found to be cost-saving options. These cards are not linked to a bank account and can be loaded with a currency before travelling, as well as having no charges when spending abroad in a local currency supported by the card. Some prepaid travel card companies also offer cashback to customers with the Cannyapp Prepaid Mastercard offering 3% cashback on all overseas purchases.
Nick Caunter, Managing Director of Airport Parking and Hotels (APH.com) said, “Travelling can be costly at the best of times and with the current cost of living increases in the UK, holidaymakers will be looking to keep costs as low as possible. There are many different options for spending abroad, and we hope the APH guide will help savvy travellers avoid unwanted fees and exchange rates on their transactions and get the best value out of their holiday spending.”