The research revealed that debit card withdrawals cost an average of GBP3.67 per transaction and it is expected that holidaymakers this year will withdraw up to GBP6.4 billion from ATM machines on their debit cards.
The financial comparison provider is urging all travelers to check their bank’s charges before they visit a foreign ATM, as the cost of withdrawing cash abroad varies dramatically.
Consumers are usually urged to use debit cards overseas as they are more secure and convenient than carrying cash or travelers’ checks. However, the convenience comes at a cost.
MoneyExpert.com also revealed that the average debit card withdrawal incurs charges of around 3.5%, which in most cases is broken down into a commission fee of between 2.65% to 2.75% and a handling fee of between GBP1.50 and GBP2.
Sean Gardner, chief executive of MoneyExpert.com, said: With the pound strong against many major currencies, you’re likely to get a favorable deal wherever you go, but by using foreign ATMs your money will lose some of its value.
There’s a price to be paid for the convenience of using your plastic overseas. The old-fashioned ways of changing your currency or taking travelers’ checks should not necessarily be dismissed. People need to think carefully about whether they are prepared to pay the 2.75% commission plus fee, before entering their PINs, Mr Gardner concluded.
