As the travel industry begins to recover from the implications of COVID-19 – there has already been a sharp rise in holidays to France after the ban on UK tourists was lifted - many Brits are booking a much-needed holiday. But these long-awaited breaks could cost far more than necessary given the lack of knowledge around foreign exchange (FX) charges and international transaction costs, according to research by bank challenger Tally.
Tally found that nearly six in ten (57%) people don’t know banks add a margin to the official FX rate in addition to charging a transaction fee for using your card abroad, while four in ten (39%) are unaware that many banks charge fees for withdrawing money from cashpoints when abroad as well as additional interest on the withdrawal.
Half (51%) didn’t know that choosing to pay in the local currency - rather than in pounds - when using a card abroad gives a more favourable exchange rate, while 55% are unaware that if you don’t pay in the local currency on your card when abroad, the retailer will set the exchange rate and have the option to add conversion fees on top.
