Brits spending extra on overseas ATM fees

By UK CreditCards.com

ATM usage abroad costs moreUK credit card customers spend £284m extra a year on overseas cash machine charges, it has been claimed.

Caxton FX released a new report yesterday, showing that cardholders are risking increased debt by needlessly spending extra on withdrawals overseas. Charges for ATM usage while abroad are commonly taken on a percentage or flat-fee basis by credit card providers. Each withdrawal can cost £3 or more.

Meanwhile, buying goods and services with a mainstream credit card abroad also generally entails an additional set of fees. Using prepaid credit cards while abroad was touted as an alternative by Caxton FX.

The provider pointed out that these cards tend to carry lower charges both for overseas transactions and cash machine withdrawals. Prepaid credit cards work by being "pre-loaded" prior to use, in the manner of a pay-as-you-go mobile phone.

"As [it is] a prepaid card, there is no need to open a separate bank account," the Caxton FX report added.ADNFCR-2308-ID-19268580-ADNFCR

Published: 17 July 2009