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Make Your Cash Stretch Further Abroad
Some card companies have recently announced it will start charging customers for using its debit card abroad. November 1 changes will mean even some debit card customers will pay a 2 % commission at ATMs outside of the UK, in addition to a £1 flat rate. Debit cards have been very popular with travellers. However, with the new charges many customers may want to consider a different way of accessing their cash when out of the country. If you don't trust yourself with a credit card, sticking with some debit cards could still be your best option compared to customers using other banks, who charge between a 2.75 and 2.99 per cent commission. There are big differences between the banks on this issue. Whereas some debit card customers will be charged £28 per £1,000 (based on four £50 card purchases and eight £100 cash withdrawals) others will cause a £43.52 charge of even a charge of £49.92 for the same thing. Debit card customers may also find that, in place of the previous fee withdrawal fees, they'll be given extras such as free travel insurance. Certain specialist cheap foreign spending use abroad credit cards instead of a debit card can also save money. Although credit cards gather immediate interest, it is still cheaper than using a debit card as long as the balance is paid off in full every month. Some use abroad credit cards to consider have no foreign exchange fee abroad. APR is at 12.9 %, which is about £1 per month for every £100 withdrawn abroad. Other credit cards offer commission free use abroad (including the Post Office credit card) and some offer no fees in Europe and then a small fee elsewhere in the world. As always, though, credit card cash withdrawal fees are likely to be high and its always best to do a through credit card comparison before signing up. Other options are pre-pay cards such as Fairfx.com, Caxtonfx.com and Travelex.co.uk. These cards work the same as credit and debit cards but you can only spend what you have put onto the card. You should also be wary when you are asked if you'd prefer to pay in sterling rather than Euros. Always say no to sterling. Dynamic Currency Exchange will mean that the shop does the conversion, usually at a very unattractive rate. Article Directory: http://www.articledashboard.com Helen Glaberson is a staff writer with a credit card comparison website which compares the UK market. The site also has lists of specific card types such as bad credit rating credit cards. |
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