Currency Exchange – Using Credit Cards Abroad
If you plan on using your credit card abroad, don’t get caught out by the currency exchange.
Credit cards and currency exchange
Using a credit card abroad is common and there are many benefits – convenience, accessibility and the fact you have insurance cover when you use a credit card. You also don't have to worry about converting your cash at the currency exchange. But there are pitfalls you should be wary of. More and more people who use their credit cards abroad are finding themselves short changed. Why? Retailers are exploiting currency exchange rates by converting their purchases into pounds rather than using the local currency.
Decide on the right currency
It is a common practice in countries throughout the world, but especially in the popular destinations of Spain, France and Italy. According to regulations, customers should get the opportunity to decide which currency they are charged in so that they can avoid fluctuating currency exchange rates. But the reality reveals that this choice is not being offered.
Don't be duped
Many people responded to a BBC report that outlined the problem of currency exchange and credit card use abroad. One respondent said that they felt ‘duped' when they were charged in GBP and not AUD in an Australian hotel and the currency exchange rate meant a far more expensive bill. An astonishing amount of people who were victims of this financial oversight said they were not advised about the currency exchange rates before their purchase.
Advice on currency exchange
The advice is to check the receipt before you sign for a credit card transaction abroad. It should state that you have the choice of currencies so you can make an informed decision about which currency has the best exchange rate. Most of us sign automatically when requested in a shop or restaurant, but you should always check the small print first.
The pitfalls of paying on plastic
When customers do realise they have been duped or misinformed, it can be a lengthy process trying to reclaim the money back. And so some believe it isn't worth the effort, time or cost of phoning, emailing and writing in complaint. It is worthwhile then getting clued up about currency exchange rates and credit cards abroad before you travel so you can avoid the pitfalls of paying more on plastic.
Foreign Currency Exchange Ltd is a commercial currency brokerage based in the UK. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money by getting a better currency exchange rate than your bank. The Foreign Currency Exchange buys currency at wholesale rates and can help you save money with our fast secure service. For more information contact us now, telephone +44 (0) 20 7989 0000 or email info@fcexchange.co.uk