Credit card companies to rake in profits over Easter
With schools having broken up for the Easter holidays, many consumers in the UK could be heading off for a spring break to one of a variety of European destinations.
This is likely to be good news for credit card companies and banks, as they are set to rake in the cash from charges and foreign transactions fees resulting from consumers spending on their plastic whilst they are away.
According to a recent report card companies and banks could rake in around £180 million over the Easter period, and this is based on an average spend of £500 per person over the holiday.
Four million Brits are expected to go off on their breaks armed with their plastic cards over the Easter holiday, and industry experts have urged those looking to had off on a break to be aware and careful about the charges that they could incur through making transactions and withdrawals on their cards.
One industry expert stated: “A credit card with purchase protection of 90 or more days is the best option for purchases overseas. Not only do the credit cards from the Post Office, Nationwide and Saga offer this, but they also have zero per cent purchase offers of between three and six months and don’t levy foreign exchange fees in Europe. This is a far better prospect than their rivals that charge between 2.73 and 3.0 per cent.”
Another industry official added that hidden charges such as these could quickly result in extortionate costs for consumers, stating: “People who are planning to go abroad this Easter should be aware of the hidden charges that most card providers impose, which are both costly and unnecessary.”
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