Overseas credit card fees 'too high but worth it'

Travellers using their credit cards abroad face high fees but, on balance, are getting a useful service, a travel industry expert has claimed.

Credit card users will pay over £355 million in costs for using their cards abroad through fees that are "too high" but access to ATMs makes travel easier and means that "the benefits do outweigh the charges", according to the Association of British Travel Agents (ABTA).

Sean Tipton, spokesperson for the ABTA, said: "Fees are, in our view, too high. This is something that’s being looked into by the EU: excessive charges. But … since the introduction of ATMs it has made getting money out abroad so much easier."

Credit card companies typically charge travellers an "exchange rate administration fee" of 2.59 per cent on card usage in Europe and 2.61 for purchases made in the US.

ATM’s, which are useful for travellers who do not want to walk around a foreign city with pockets bulging with cash and are a more convenient alternative to traveller’s cheques, also incur costs for customers.

Credit card providers typically charge a 2.3 per cent cash withdrawal fee, but the ABTA says it’s all worth it.