Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22
UK House Prices Real Terms Sustainable Trend - 17th June 22
Why I’m buying the “new” value stocks… - 17th June 22
Optimize Benefits from R&D in Software Product Development with an R&D Tax Credit Software - 17th June 22
Want To Save On Your Business Energy? Here Are Some Helpful Tips - 17th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Using Credit Cards Abroad– Avoid Nasty Charges and a Shock on Your Return!

Personal_Finance / Credit Cards & Scoring Apr 07, 2008 - 11:44 AM GMT

By: Mike_Gracia


Having a credit or debit card while on holiday can give you peace of mind, knowing that you are not having to carry large sums of money all the time.

But what about the costs of using your credit cards abroad ? If you do not use your card wisely, you could come home to a shock that turns the normal post holiday blues into a financial nightmare!

We have put together a small guide to help you void any nasty surprises when your card bill arrives.

The main point here is that with some credit cards, not all of the fee's are made explicit when you register for the card, some are more ingrained. – however, if you're strategic in the use of your purchase credit card , or change to one of the cards that don't have those 'hidden catches' then a large percentage of these fee's can be avoided!

Here is a brief run down of some of the possible charges.

Loading Fees

Initially your credit card exchange rate may look pretty competitive. Unfortunately however, you may have to pay something called the “exchange rate loading fee” – which is usually in the form of a percentage, typically around 2.75%. Once the fee is added, your overall credit card exchange rate becomes rather uncompetitive!

One point worth noting here is that the loading fees may not actually appear on your statement at all; necessitating a thorough reading of your cards t+c's to find out about them.

These loading fees can be avoided by applying for one of the cards that don't use them. Try looking through a comparison site, like

Cash Withdrawals

It is a wise move to avoid using your credit card for withdrawals whilst abroad!

Such use will incur a huge amount of interest on your card, and these interest payments often apply straight away. If you really want to pay lots more interest than you need to, then using your credit card for cash withdrawals whilst abroad is for you!

You should be aware that cash withdrawals are the last thing to be cleared from your credit card balance, meaning the large interest rate be there for longer, and will cost you more and more unless you pay the balance in full.

Spending Fees

Spending fees are applicable exclusively to debit cards; this is a flat fee that some (but not all) banks put on foreign transactions. These fees tend to work out at around £1.75 per transaction.

Remember that not all banks chare these fees, so consider shopping around before going on long breaks, or if you are taking multiple trips.

This all sounds like hassle! – should I just not take my card?

Probably not a good idea! Your credit card can get you out of many a sticky situation (such as a vehicle breakdown, medical emergency etc) – not to mention the peace of mind that you gain from not having a large sum of money on you!

Best just to shop around, and wise up about the fees that can be applied when using credit cards abroad.

Another point is that you really should inform your bank that you are planning a trip abroad, and ask them not to block your credit card when they see foreign use on your account. Remember to also take your banks contact details with you, they may have a different phone number to use when calling from abroad, so ask about this also.

Anything Else?

A final point is that if/when you do make a purchase on your card, pay in the local currency. This should be displayed on the card machine, just before you type in your PIN. Always remember to cover the keypad when typing in your PIN.

By Mike Gracia

    © 2007-2008 Copyright Mike Gracia / - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

    Mike Gracia Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in