Brits to waste money on unnecessary foreign exchange fees

Britons holidaying abroad this summer are on course to pay out more than £49 million pounds in unnecessary foreign exchange fees, new research by Santander Cards has revealed.

Despite the recent ash episode, airline strikes and the gloomy economic outlook, more than 18 million Britons are planning to head abroad this summer, of which 13.4 million are taking their sole summer vacation overseas and a lucky 4.8 million are having a holiday both abroad and in the UK.

The research found that British holidaymakers going abroad this summer are allocating themselves an average budget of £350 per week for spending money, an increase of more than a quarter (28 per cent) on the average weekly holiday allowance this time last year (£274).

Men typically have a higher spending budget while on holiday abroad than women, at £393 per week versus £316, with those aged 35-54 having the biggest budget at £377 per week.

When it comes to spending abroad, more than half of British holidaymakers holidaying abroad (57 per cent) are planning on using a credit or debit card to pay for their purchases while they're away, with the average card user putting 44 per cent of their holiday spending money on plastic.

But with nearly all card providers charging an exchange fee - typically about three per cent - for converting transactions made in foreign currencies, the cost for using a card that charges a foreign exchange fee can quickly mount up, equating to a national bill of more than £49 million pounds this summer.

The research also found that six per cent of Britons who holidayed abroad last year are still paying off their holiday bill. 

Emma Roberts, Director of Santander Cards, commented: "For the millions of Britons preparing to head away this summer, the cost of foreign exchange fees when spending on a card abroad are often overlooked but they can equate to a staggering national bill of more than £49 million pounds. Holidaymakers should make sure they pack a card that doesn't charge them for making purchases abroad, such as the popular Santander Zero Credit Card, which offers fee-free foreign usage anywhere in the world.

"For holidaymakers still paying off last summer's holiday bill, the Santander Credit Card offers an introductory 0 per cent balance transfer period for 13 months, with no balance transfer fee for existing Santander customers who have a current account, mortgage or investment product with us."