Free Banking In The UK May Not Be So Abroad

Whilst consumers shun archaic payment methods in favour of debit cards, be warned that whilst in ‘free banking’ is available in the UK, it may not be the same abroad.

As Caxton FX warns, slipping into ‘default mode’ and using your bank card whilst abroad is costing Brits £144m in unnecessary fees.

Michelle Slade, analyst at Moneyfacts.co.uk, explains, “In the UK we are so used to ‘free banking’ that many people assume things will be the same when they go abroad.

This can be a costly mistake as additional charges may well apply; both for taking money out of a cash machine and for making purchases in store.”

Many are turning to use a prepaid currency card as the best card for their holiday money and by doing so can avoid many fees.

For example as Rupert Lee-Browne, CEO at Caxton FX says, “With a Caxton FX prepaid currency card there are no overseas ATM fees or transaction charges and competitive exchange rates.”

If you lose or have a debit card stolen, you risk losing a large sum of money as it is linked to your current account. There is also a greater risk of identity theft. As a prepaid current is separate from your bank account it reduces such risk.

Caxton FX is one of Europe’s leading foreign exchange companies. It is authorised and regulated by the Financial Services Authority.