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Britons might overpay on credit cards, travel insurance abroad

Mon, 25 Jul 2005

British sun seekers could save £750 million if they plan their travel insurance and debit and credit card transactions better.

Nationwide Building Society found that many British holidaymakers are charged an average £75 on debit and credit card charges abroad. Many debit and credit card providers still charge 2.75 per cent on purchases charged to plastic, costing the consumer over £2 per transaction.

The only high street debit and credit card provider to charge no loading fee for foreign debit and credit card use is Nationwide.

The Society also noted that Britons who take out travel insurance with their travel agent could pay up to £150 more than what they should.

According to Mintel research, nearly a third of all holidaymakers overpay by taking out travel insurance with their travel agents rather than shopping around for the best travel insurance deal.

Nationwide estimates that assuming all these travellers only take a seven-day, European single trip travel insurance policy with their travel agents, the total wasted is at least £250 million.

"It is a shame that holidaymakers allow holes to be burnt in their wallets while they are in the sun. They shouldn’t allow themselves to be lured into agreeing to tour operator’s insurance, as it is usually considerably more expensive than Nationwide’s," said the group's executive director Stuart Bernau.

"In addition, I would suggest that anyone who plans to spend on their cards while abroad, ought to make sure they’ve packed a Nationwide card in their wallet, otherwise they run the risk of paying unnecessary fees and charges to their bank," he added.

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