Foreign usage charge threat for credit card holders

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Credit card users should be aware of foreign usage charges, it has been claimed.

According to Moneyfacts analyst Michelle Slade, such fees can be as high as 2.99 per cent for both purchases and cash transactions.

She commented that since charges are applied each time the card is used, they can soon add up – potentially neutralising the effects of seeking the best credit card deals.

Ms Slade added: "Taking cash out on your credit card is never advisable even in the UK. Not only is the interest rate much higher than on purchases but you will be charged interest from day one.

"On top of this, you will be charged a cash handling fee as well as a foreign usage charge if the cash is taken out abroad."

She explained that both Nationwide and Thomas Cook Personal Finance now both charge consumers for using their card abroad, having previously not done so.

Last week, Merchant Accounts urged all small and medium-sized businesses to accept card payments as they bid to hold on to custom in the digital age.

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Tags: credit card users , michelle slade , medium sized businesses , charge consumers , personal finance , usage charges , cash transactions , thomas cook , card payments , merchant accounts , interest rate ,

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2009-11-19 12:24:52 © Moneyextra.com