Holiday spending Cash Credit and Debit Cards

You are on holiday, you purchase something having performed a currency conversion calculation and then on returning home and receiving your statement you find that it has not quite worked out how you thought it should.....

There are two main factors, your bank's exchange rate is different to the to the one you used when calculating your spending and most debit and credit card providers make a charge of anything up to three per cent per overseas transaction.

The size of this fee varies between card providers. The names used to describe this fee are varied and inventive, handing fee, foreign transaction fee etc etc.

They are all one and the same thing. Your card provider is charging you a fee every time you use your credit or debit card abroad.

Some card providers do bot apply a charge when using their cards abroad so it is worth checking with your present card and obtaining one that does not charge.  

There is little to choose between using a debit card or credit card abroad in terms of cost and charges but it is a good idea to check with your card providers before you go which one might be the best deal.

Obtaining foreign currency abroad through an ATM with your debit card using a debit card.  The ATM fee is usually less with a debit card than a credit card. The less times you use an ATM the better but you must balance this against the amount of cash you wish to carry at any time.

You can buy cash before you go.  Check out on line for rates and give your self time to check for the best deals..   Some on-line services will allow you to pickup your currency at the airport. However your local post office if the rate is good can be very convenient.

A bit of forward planning before your trip in organising which card, where to get cash, competitive travel insurance etc can all add up to very worthwhile saving on your total holiday costs.