Brits to waste £627m in bank fees this summer, says Caxton

As the travel season picks up in the UK, more Brits are looking to save money by traveling during the ‘shoulder season’ in May and June. However, new research from payments firm Caxton reveals that using debit cards abroad could result in extra charges for unsuspecting travelers.

According to Caxton’s calculations, Brits could end up wasting an average of £32.32 per trip due to the fees imposed by high street banks on overseas transactions. With 19.4 million foreign holidays taken by UK residents between July and September last year, the total bill for these charges could reach £627 million this summer.

On average, Brits make 19 card transactions overseas, spending around £32.33 per tap. They also withdraw money from ATMs three times during their trip, taking out approximately £150 each time. While debit cards are widely used in the UK, with contactless payments on the rise, using these cards abroad can lead to unnecessary expenses.

Most high street banks charge a conversion fee for using their standard debit cards overseas, affecting both spending and cash withdrawals. HSBC, for instance, adds a 2% non-sterling cash fee on top of their regular charges, resulting in a total fee of 4.75% of the amount withdrawn for standard account holders.

Despite the increase in the number of foreign holidays taken by Brits last summer, the research shows a decrease in the average card usage per person, with a reduction in both purchases and spending per transaction. This suggests a shift towards more budget-conscious behavior while traveling.

Alana Parsons, Chief Operating Officer at Caxton, recommends getting a currency card for holiday spending to avoid unnecessary fees and better manage expenses. Currency cards can be pre-loaded with the necessary funds, helping travelers stick to their budget and avoid surprises when they return home.

Caxton is an award-winning fintech payments company processing millions of international and domestic transactions annually. For more information on how to save money while traveling abroad, visit https://www.caxton.io/cards.

In conclusion, for Brits planning a summer getaway, being mindful of debit card fees while traveling abroad can help avoid unnecessary charges and save money for more enjoyable experiences. Consider using a currency card to better manage your holiday spending and make the most of your vacation budget.

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