Thursday 1st June 2006
Hidden charges on credit and debit cards on transactions abroad are expected to collectively cost Britons millions this year.
Price comparison website uSwitch.com believes that hidden charges will cost holidaymakers in Europe some £576 million in 2006.
Around £8.6 billion is expected to be put on credit cards in Europe this year, with a further £7.9 billion set to be withdrawn by debit cards.
Cash withdrawal fees alone average two per cent for UK-based credit cards and 1.5 per cent for debit cards on the continent, with many card providers also imposing a 2.75 per cent exchange rate administration fee on all transactions, including withdrawals.
In addition, currency conversion charges at retailers in Europe can add as much as four per cent onto transactions.
"It is possible for consumers to reduce the amount they will pay in fees, or avoid paying them altogether, if they take a little time to research the credit card market before going away and make sure that they are packing the right plastic," comments Nick White, head of personal finance at uSwitch.com.
"In the long term, it may end up being more sensible for them to have two separate credit cards - one for UK use and one specifically for using abroad."
Only a small handful of providers, including Nationwide Building Society and Liverpool Victoria, do not include fees on foreign transactions. 
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