There has been a lot of talk in the British press recently concerning the risks involved in using your credit card abroad. So, if you don't want to carry a lot of cash around with you on holiday, what's the answer?
It is true that most of the problems occur outside of Europe where regulations may be less stringent. But, it is still important to look after your credit card and its usage while holidaying in Spain and anywhere else in Euroland.
We have put together a few pointers to help you ensure that you make the most of your money while in Spain, leaving you less time to worry and more time to enjoy this beautiful area.
- Speak to your bank before you leave for foreign climes. Until recently, it was expensive to withdraw cash from cash point machines abroad due to the added banking commissions. However, making direct purchases with your credit or debit card were only subject to fluctuating exchange rates. Some banks have now placed a commission on these direct purchases as well, meaning that purchasing abroad may cost you a further few percent. Check with your bank as to what is the best way to fund your purchases abroad before you leave.
- Shop around before you exchange your pounds for Euros. An increasing number of high street outlets are providing cash exchange services without charging commissions. This can save you a pretty penny, before you've even left home. Many hold plenty of Euros in stock so you don't need to preorder but check with your local suppliers to avoid a last minute panic.
- Pay in local currency and check your bill. Some companies may offer the option of bypassing bank transaction charges by charging your credit or debit card in your home currency. Watch out! They may add their own charges on top of this amount so unless you are clear about the exchange rate, avoid this option. We recommend that you always request your bill in local currency to avoid any problems. Also, remember to check your bill before handing over your credit card. Whether accidental or deliberate - mistakes do happen.
- Cash machines. Cash machines are easily accessible on the Costa del Sol and most offer an English language option. They work in just the same way as they do at home but you will be charged by your bank for taking money out abroad. Avoid taking out small amounts regularly - instead take out larger amounts and store the money in your hotel or apartment safe if you are concerned about carrying it around with you. Banks usually charge a flat free for withdrawals - perhaps ₤1.50 or more - as well as any percentage they may load on to the commercial exchange rate. On a number of small transactions, this seemingly small fee can add up considerably. Again check with your bank before you leave as not all banks do this. Remember that credit card companies charge even more for withdrawing cash so avoid using your credit card at a cash machine unless you're desperate.
- Bureaux de Change. Beware of currency exchange offices abroad offering comission free currency exchange. Double check their rates with those advertised in the newspapers or by the banks as they often make their money by offering a terrible exchange rate.
- Refused credit cards. As credit card fraud becomes more of an issue, many credit card companies are increasing their security measures meaning that your credit card may be refused on more than one occasion while you are shopping abroad. Don't be embarrassed! It happens all the time in Spain. Just ring the number on the back of your card while you are in the shop or restaurant and your credit card company will ask you a few security questions and then authorise the transaction. Alternatively, you can telephone your credit card company before you leave home, advising them on when and where you will be travelling. Then they will be less likely to put a security stop on your card.
- Hotel safes. Check with your hotel reception as to whether staff have access to the safe in your room. Many now offer the option whereby you can set your own safe code to avoid this risk. Avoid leaving your credit or debit cards in the safe in case their details are copied.
- Credit card details. Make a list including all of your credit card details, including emergency contact numbers, just in case your cards are stolen. Keep it in a separate place to your cards, or with a trusted friend or family member back at home.
- Receipts. Keep copies of all of your receipts in case of any discrepancies when you get home.
It always pays to be vigilant, whether at home or abroad. We hope that our advice will help you to enjoy your time in Spain.
